On June 8, during his weekly radio talk show Browne and Browne, Antigua and Barbuda Prime Minister Gaston Browne announced that LIAT 2020 had been granted its air operator certificate (AOC) by the Eastern Caribbean Civil Aviation Authority (ECCAA).
In 2003, the Organization of Eastern Caribbean States (OECS) enacted legislation vesting ECCAA with the responsibility for regulating all civil aviation activities in the OECS.
This includes licensing airmen and certifying air operators, aerodromes and maintenance organisations.
While PM Browne expressed his pleasure at the AOC grant, he voiced frustration over the delay in the sales agreement approval by Caribbean Development Bank (CDB), which had been under review for over two weeks.
In July 2013, the Barbados-based CDB announced it was providing loans totalling US$65 million to four shareholder governments of the regional airline LIAT (1974) Ltd – Barbados, Antigua and Barbuda, St Vincent and the Grenadines and Dominica – to assist with buying aircraft, in keeping with its fleet-modernisation project.
According to the loan agreements, the loans would be "on-lend" and repaid by LIAT over a 13-year period, following a grace period of two years. Co-financing for the project was provided by shareholder equity contributions and from the sale of LIAT's existing aircraft.
The loans were approved by the bank's board of directors during a meeting at its headquarters in Barbados on July 18, 2013. The fleet-modernisation project involves replacing LIAT's ageing fleet through a combination of lease and purchase of aircraft, financing the transition costs associated with the changeover, upgrading maintenance facilities and other institutional-strengthening activities.
In June 2020, it was announced that LIAT would soon be liquidated, following increased debt and the economic impact of the covid19 pandemic. A new airline, LIAT 2020, would be formed to continue to provide connections between the Caribbean islands.
In July 2020, LIAT 1074 was placed under court-ordered administration and finally ceased operations on January 24.
On February 12, the Antigua and Barbuda government announced it had reached an agreement with the CDB on the price of the three ATR 42-600 aircraft, which were previously operated by LIAT (1974) Ltd.
Emphasising his concerns, Browne said, "I’ve been messaging the acting president and up to this day, I don’t understand why a sales agreement has to take so long."
In discharging its responsibilities, ECCAA published an advisory circular – ECCAA OAC-001-Air Operator Certification – which describes the five phases of the grant of an AOC.
During Phase 1: Pre-Application, LIAT 2020 has to provide ECCAA with a list of aircraft by make, model and series that it intends to operate.
LIAT 2020 must also provide documentary evidence that it is in the process of actively procuring aircraft, facilities and services appropriate to the type of operation proposed.
If formal contracts are not completed, letters or other documents showing preliminary
