LIAT 2020’s future clouded by owner’s legal woes

IN A TWIST THAT could send shock waves through Caribbean airspace, the newly launched regional carrier, LIAT 2020, finds itself in the eye of a storm.

The airline’s majority stakeholder, Allen Onyema, CEO of Nigerian airline Air Peace, faces an expanding array of charges from the United States government, casting a long shadow over the fledgling carrier’s future.

The U.S. Attorney’s Office for the Northern District of Georgia didn’t mince words in its Friday statement: “After allegedly using his airline company as a cover to commit fraud on the United States’ banking system, Onyema, along with his co-defendant, allegedly committed additional crimes of fraud in a failed attempt to derail the government’s investigation of his conduct.”

The legal noose tightens not just around Onyema but also ensnares Ejiroghene Eghagha, Air Peace’s Chief of Administration and Finance. Eghagha stands accused of participating in both the obstruction scheme and the earlier bank fraud counts. This widening net of allegations threatens to ground Air Peace’s Caribbean ambitions before they truly take flight.

The timing couldn’t be more precarious for LIAT 2020.The airline, rising from the ashes of its predecessor LIAT 1974, had only recently spread its wings across the Caribbean archipelago.With newly launched routes to Dominica, St. Kitts, and Grenada, LIAT 2020 seemed poised to breathe new life into regional connectivity. Prime Minister Gaston Browne of Antigua and Barbuda, the driving force behind the airline’s resurrection, had hailed the partnership with Air Peace as a “significant milestone in regional aviation.”

However, as legal storm clouds gather over Onyema, the future of this Caribbean air bridge hangs in the balance. The U.S. authorities’ dogged pursuit of the Nigerian businessman raises questions about the due diligence conducted in forging this international partnership. It also casts a spotlight on the challenges facing small island nations in their quest to secure reliable air links – a critical lifeline for tourism-dependent economies.

U.S. prosecutors claim the Air Peace CEO orchestrated a complex scheme, moving suspicious funds from Nigeria to American bank accounts between 2017 and 2018.The money, allegedly disguised as aircraft purchase funds, flowed through a labyrinth of transactions involving Onyema’s Atlanta-based firm, Springfield Aviation LLC.

“The diligence of our federal investigative partners revealed the defendants’ alleged obstruction scheme, making it possible for the defendants to be held accountable for their aggravated conduct of attempting to impede a federal investigation,” stated U.S. Attorney Ryan K. Buchanan, highlighting the gravity of the situation.

As Onyema and Eghagha continue to evade U.S. authorities, the case has already claimed its first conviction. Ebony Mayfield, an American woman described as a former “bartender, restaurant waitress, and nightclub dancer,” was sentenced to three years’ probation in September 2022 for her role in facilitating the alleged fraud.

The unfolding legal drama threatens to clip LIAT 2020’s wings just as it was gaining altitude. With a planned fleet of up to six aircraft, the carrier had ambitious plans to stitch together the Caribbean’s patchwork of island nations. Now, those plans may be forced into a holding pattern as questions swirl about the airline’s financial backing and leadership stability.

For Caribbean travellers, the potential grounding of LIAT 2020 could mean a return to the frustrating days of limited inter-island connectivity.

The repercussions extend beyond mere inconvenience for tourists. For small island nations, reliable air links are the arteries of economic lifeblood, facilitating not just tourism but also trade, medical travel, and family connections. The potential collapse of LIAT 2020 could leave a vacuum in regional air service, one that cash-strapped governments may struggle to fill.

(credit:WiredJA News)