SecreL 8ay, 1lbay, orLsmouLh, uomlnlca 1

lebruary 23, 2014

Ponourable ur. 8alph Consalves of SL. vlncenL and Lhe Crenadlnes
LlA1 (1974) L1u
v.C. 8lrd lnLernaLlonal AlrporL
C 8ox 819
Coolldge
AnLlgua

uear rlme MlnlsLer Consalves:

!"# !%& '( )'*" + ,%-'&"-- ,"./0" '( 1/"- /%( /. ,%-'&"--

Cn Lhe Lelevlsed program !"#$ &' ()*$ &+$ ()*&, on Sunday, lebruary 23
rd
, l appealed Lo you Lo sLep aslde
as Chalrman of Lhe Shareholder's commlLLee of LlA1. As menLloned on Lhe program, glven Lhe respecL
and admlraLlon l have for you, parLlcularly on your sLance and leadershlp on lssues such as reparaLlons
and Lhe cholera ouLbreak ln PalLl, lL was personally dlfflculL for me Lo do Lhls. 8uL lL ls necessary.

LlA1 has moved from an operaLlonal melLdown ln Lhe Summer of 2013 Lo a flnanclal melLdown a mere 7
monLhs laLer. LlA1 dralns our Lreasurles, operaLes lnefflclenLly and sLlfles compeLlLlon. 1he source of
LlA1's problem ls lLs flnanclal unsusLalnablllLy and as wlLh everyLhlng else aL LlA1, no one ls accounLable.
As Chalrman of Lhe Shareholder's commlLLee, Lhe buck sLops wlLh you.

LlA1 needs Lo flghL Lhe baLLle of lLs llfe Lo Lransform lLself Lo be flnanclally vlable and susLalnable. 8uL you
belleve, and have sLaLed so publlcly, LhaL LlA1 can never be proflLable. 1hls baLLle, Lherefore, needs a
dlfferenL general.

unsusLalnablllLy

LlA1 has losL ec$120m ln Lhe lasL four years. LasL monLh, LlA1 could noL pay boLh Lhe lease on lLs alrcrafL
as well as lLs payroll. So lL chose one and delayed Lhe oLher. A leased A18 glves 36 more seaL capaclLy
Lhan lLs closesL uash 8 equlvalenL buL ls double Lhe (lease) expense. ln 2013, repaymenLs wlll begln on
LlA1's recenL loan of us$63m Lo purchase new alrcrafL. So monLhly cash ouLflows go up even more.

And Lhe new lnflows Lo cover Lhls? lnLer-lsland Lourlsm ls down 60 ln 7 years and LlA1's load facLor ls
runnlng aL abouL 33. 1he fanLasy (aka buslness plan") ls LhaL Lhe load facLor wlll go up Lo 73. 1he
fanLasy ls also LhaL LlA1 wlll fly lLs way ouL of losses by expandlng Lo new desLlnaLlons - !amalca, PalLl,
Aruba, anama, and evenLually Lo clLles ln norLh and SouLh Amerlca.

LlA1 employs 830+ people, flles 22 desLlnaLlons, operaLes beLween 10 and 12 alrcrafL from 2 hubs (3 lf
you counL 1rlnldad) Lo move 800,000+ passengers a year Lo generaLe masslve losses.

So lL's ball ouL Llme agaln. Call on shareholders, and call on oLher good nelghbors so LhaL we can conLlnue
Lo draln our Lreasurles, operaLe lnefflclenLly and sLlfle compeLlLlon. And for you Lhls ls accepLable because
LlA1 should noL be run llke a buslness and can never make a proflL.





SecreL 8ay, 1lbay, orLsmouLh, uomlnlca 2
Cur fraglle economles can no longer supporL perpeLual ballouLs. lf we do noL Lake Lhe bull by Lhe horns
LlA1 wlll go ouL of buslness - lL wlll employ no one, fly nowhere, operaLe no alrcrafL and use no hubs. 8uL
alas, lL wlll generaLe no losses and compeLlLlve players wlll flll Lhe gaps because LlA1, Lhe alrllne unfalrly
propped up by perpeLual subsldles, wlll noL be Lhere Lo run Lhem ouL of buslness.

LlA1 musL Lherefore lmmedlaLely begln a [ourney Lowards flnanclal susLalnablllLy Lo save lLself. 8uL lf Lhe
leader does noL belleve ln Lhe [ourney, Lhen Lhe [ourney wlll never begln. lL ls on Lhls basls, wlLh full
respecL and admlraLlon, LhaL l ask you Lo sLep aslde as Chalrman of Lhe Shareholder's commlLLee, so LhaL a
new mandaLe Lo make LlA1 flnanclally susLalnable can be ushered ln.

SusLalnablllLy

1he new chalrman of Lhe Shareholder's commlLLee needs Lo belleve LhaL Lhe baLLle can be won. And whaL
needs Lo be done ls noL rockeL sclence.

AppolnL a Chalrman and a 8oard capable of Lurnlng around Lhe flnanclal forLunes of Lhe company and
runnlng a Lop-noLch alrllne. Clve Lhem Lhe auLhorlLy and auLonomy Lo do whaL needs Lo be done. Allow
Lhem Lo appolnL a CLC and resLrucLure Lhe managemenL Leam as necessary. Allow LlA1 Lo become a real
buslness free from pollLlcal lnLerference Lasked wlLh a perfecL safeLy record, hlgh employee saLlsfacLlon,
greaL cusLomer servlce and solld flnanclal performance. A flerce focus on Lhe company's flnances wlLh
ad[usLmenLs made Lo yleld (lncludlng renegoLlaLlon of governmenL/alrporL Laxes), neLwork efflclency and
operaLlng cosLs wlll be requlred. 1he resulLlng operaLlon wlll have fewer employees, fewer desLlnaLlons
and fewer alrcrafL. lL wlll be proflLable, dependable and lL wlll dellver greaL servlce. Llke any alrllne,
unproflLable rouLes wlll conLlnue only wlLh guaranLees from Lhe lnLeresLed parLy/governmenL. 8uL aL
leasL Lhen, Lhe Laxpayers wlll know whaL Lhey are paylng for, and can make LhaL declslon. And
oLher/smaller alrllnes wlll Lake up Lhe slack. CompeLlLlon wlll flourlsh, as wlll LlA1, and Lhe Carlbbean wlll
flnally geL Lhe alrllfL neLwork lL needs.

WlLh a resLrucLured board and execuLlve, confldence ln Lhe alrllne's flnanclal performance wlll be
esLabllshed and oLher Carlbbean governmenLs may even !"#$ Lo lnvesL.

AL Lhe rlghL Llme, [olnL venLure Lhe company whlle malnLalnlng a mlnlmum 30 shares among
shareholder governmenLs. 1he Lwo besL run alrllnes ln Lhe world (Slngapore Alrllnes and Alr Malaysla) are
run llke a buslness and are proflLable and remaln owned 30 or more by Lhe SLaLe and 30 or less by
prlvaLe lnLeresLs. Llke LlA1, Lhey were bleedlng losses and Lhelr shareholder governmenLs could no longer
manage Lhe ballouLs. So Lhey Look Lhe Lough declslons, appolnLed Lhe rlghL board and execuLlve Leam,
and Lurned Lhe alrllnes around Lo Lhe beneflL of all sLakeholders.

?es, lL wlll be palnful, buL lL ls necessary. And mosL lmporLanLly lL wlll pull LlA1 back from Lhe flnanclal cllff
and puL lL on a course Lo long Lerm flnanclal susLalnablllLy.

lease conslder LhaL l am a hoLeller from an lsland LhaL ls almosL 80 dependenL on LlA1 for alrllfL. CuL
one rouLe Lo uomlnlca, and we/uomlnlca wlll suffer. 8uL lf my opLlon ls (a) Lo conLlnue Lo have all Lhe
LlA1 rouLes we have Loday wlLh an alrllne LhaL ls prone Lo poor servlce, ad hoc cancellaLlons, occaslonal
and lrraLlonal plloL sLrlkes and consLanLly aL Lhe edge of a flnanclal preclplce due Lo lnsurmounLable
flnanclal losses - C8 - (b) an alrllne wlLh fewer rouLes buL wlLh good servlce, dependable schedules and
solld flnanclal performance, Lhen my cholce ls deflnlLely Lhe laLLer. And oLher alrllnes, once permlLLed,
wlll Lake up Lhe slack.








SecreL 8ay, 1lbay, orLsmouLh, uomlnlca 3

ln Summary

1homas Ldlson sald, l have noL falled. l've [usL found 10,000 ways LhaL won'L work." And Lhen flnally, he
lnvenLed Lhe elecLrlc llghL bulb.

We have llved Lhrough and exhausLed Lhe many ways LhaL LlA1 won'L work. lL ls Llme Lo Lry Lhe way LhaL
wlll.

l appeal Lo you, rlme MlnlsLer Consalves, as well as Lhe oLher Shareholder rlme MlnlsLers, Lo mandaLe a
new approach for Laklng LlA1 and Lhe Carlbbean avlaLlon lndusLry forward wlLhouL Lhls perpeLual and
unfalr burden on our Lreasurles.

lL ls Llme Lo run lL llke a buslness before lL goes ouL of buslness.

8especLfully ?ours,




Cregor nasslef
Cwner/ulrecLor - SecreL 8ay
LxecuLlve Chalrman - lorL ?oung PoLel

cc: Ponourable ur. 8aldwln Spencer of AnLlgua and 8arbuda
Ponourable lreundel SLuarL of 8arbados
Ponourable 8oosevelL SkerrlL of uomlnlca

p.s. As we agaln desperaLely seek addlLlonal funds for yeL anoLher ballouL, make lL Lhe lasL please. uon'L
puL Lhe money lnLo Lhe black hole of an unsusLalnable buslness model. lnsLead, use lL Lo resLrucLure
Lhe alrllne, raLlonallze lLs operaLlons and place lL on a solld long Lerm fooLlng. ln oLher words, %"&'
)$ $*' +",$ -")+./$0