The story of Caribbean aviation connectivity began in 1956 when entrepreneurs L.W. Magruder and Frank Delisle established Leeward Islands Air Transport Services (LIAT) with a temporary permit from the Colonial government. What started as a single-engine aircraft operating from Delisle’s backyard airstrip in Montserrat would evolve into a vital regional carrier serving numerous Eastern Caribbean islands.
During its formative years, LIAT operated under the stewardship of British West Indian Airways (BWIA), which provided substantial financial and operational support. Between 1962 and 1970, BWIA absorbed management costs and guaranteed loans while LIAT accumulated debts exceeding $5.6 million. Despite this support, BWIA recognized by 1971 that LIAT’s expansion requirements exceeded its financial capabilities.
This realization prompted BWIA to sell its 75% stake to British company Court Line Limited, marking a significant departure from its policy of maintaining West Indian ownership. The transition included safeguards allowing Caribbean governments future participation. However, Court Line’s bankruptcy in 1974 forced eleven Caribbean nations to intervene, forming LIAT (1974) Ltd with regional government ownership.
The airline persisted for decades with various aircraft configurations until the COVID-19 pandemic precipitated its collapse. Following months of operational struggles and unsuccessful bailout negotiations, LIAT (1974) Ltd ceased operations in January 2024 and entered liquidation.
In a remarkable revival effort, Antigua and Barbuda partnered with Nigerian carrier Air Peace to establish LIAT 2020 in July 2020. The new entity features a 70-30 ownership structure, with Air Peace securing citizenship through Antigua’s Investment Programme to satisfy CARICOM ownership requirements. The partnership involved $85 million in combined investments and leased E145 aircraft from Air Peace.
Despite this rebirth, significant challenges persist. The FAA’s Category II rating for the Organization of Eastern Caribbean States prevents LIAT 2020 from operating routes to US territories. Additionally, high airport charges and taxes continue to hamper regional air connectivity, presenting ongoing obstacles for the revitalized carrier’s sustainable operation.