The government of Antigua and Barbuda is now considering providing a 32 per cent severance to former employees of the  Leeward Islands Air Transport Services (LIAT) who have been lamenting their severance.

The Antigua and Barbuda news portal, the government disclosed the decision on Thursday (March 30) in an effort to settle the moral obligation to the former workers.

It is estimated at a cost of ECD 10 million.

“The government of Antigua and Barbuda owned 32 per cent share in LIAT (1974 Ltd) and cannot reasonably be expected to bear a bigger share of the burden than it may be legally required to contribute, had the earlier airline owned assets sufficient to meet its debts obligations,” the government said in a statement.

After having been grounded for several months in 2020 due to the adverse impact of the COVID-19 pandemic on top of an already terrible financial crisis, LIAT resumed operations in 2021 but on fewer routes.

The carrier also owes severed workers more than US$2 million and creditors more than US$37 million.

LIAT, is a regional airline headquartered in Antigua and Barbuda that operated high-frequency inter-island scheduled services to 15 destinations in the Caribbean.