T&T Government steps in to help BWIA
By Felicia Persaud
Trinidad
& Tobago
Prime Minister
Patrick Manning
It finally looks like BWIA Chairman Mr. Conrad Aleong's words "we are here to stay," are coming to pass.
The Trinidad and Tobago government has finally agreed to pitch in and help the beleaguered company keep its doors open and its aircraft flying.
The Patrick Manning administration late
last week agreed to throw BWIA a US$18.5 million lifeline. The
agreement came after airline officials and BWIA boss Mr. Aleong
blamed the US$11.2 million losses the company suffered on the
influx of charters, competition from Air Caribbean and Caribbean
Star, higher fuel prices and insurance costs and the US FAA downgrade
from Category 1 to Category 2.
But the governmental bailout is coming with some state strings
attached.
overnment wants financial commitments from the airline's large private sector stakeholders. Several of the major shareholders apparently are refusing to put any new money into the airline.
The government will also hire a consultant to review BWIA West Indies Airways Ltd. and the regional airline industry to determine the viability of merging the carrier with Antigua-based LIAT.
The T&T administration is also continuing
its push for a merger between BWIA and regional carrier LIAT,
which is owned by several Caribbean island governments.
BWIA and LIAT which both have been losing money can
no longer exist separately, government ministers said after approving
the loan in a special Cabinet session last Thursday.
About half of the loan will fund severance packages to 617 employees laid off in January, while the rest will help cover debts on aircraft leases and transport taxes.