Shareholder governments of LIAT are seeking to update the fleet of the regional airline to the tune of US$54 million, St Vincent and the Grenadines Prime Minister Ralph Gonsalves has announced.

Gonsalves said that the idea was discussed at a meeting with the prime ministers of Antigua and Barbuda and Barbados, the other shareholder governments, on Saturday.

"The main issue we discussed strategically this morning was the question of new aircraft. We need some new aircraft," he told journalists.

"We anticipate that we probably need US$54 million to do some fleet renewal and we discussed some ways and means of how we can possibly go."

The Antigua-based carrier has a fleet of 18 Dash-8 aircraft, with 15 that have a seating capacity of 50 and three 37-seater planes.

Gonsalves said the goal is to replace the 37-seater planes with newer aircraft.

"You know, the Chinese are interested. They have given us a model for an aircraft which they would like to sell us."

"I know Bombadier, the people who have been supplying the Dash-8, they have shown an interest. I know the Brazilians may have some kind of aircraft, so we'd listen to everybody. We're looking for the best commercial deal," Gonsalves said.

Gonsalves said his colleague, David Thompson, prime minister of Barbados, would be visiting mainland China "in the not too distant future".

While he refused to divulge specifically how the funds for the fleet upgrade would be sourced, the St Vincent and the Grenadines prime minister said LIAT's shareholders would explore all available options open to them.

"There are different ways in which you can get the money," he said, recalling that in the past, a deal had been struck with the Canadian government to provide planes - that might be able to be revisited.

"We had gotten planes already from Canada through the Export Development Corporation and we got those planes at really good prices and we were able to deal with our debt, some of it was forgiven," Gonsalves said.

He added that Chinese manufac-turers were seeking to "get a foothold in the market" and would have generous commercial terms to offer.

Saturday's meeting also provided shareholders the opportunity to get updates regarding other issues affecting the airline, including the ongoing row between management and pilots.

An end-of-September deadline has passed settlement by way of arbitration in the dispute with the Leeward Island Airline Pilots Association (LIALPA) but Gonsalves remained optimistic that the matter would be resolved by a revised October month-end deadline.

"We''re gonna sort this thing out. There's a procedure and we have to give the process time to work," he said.

- CMC