Brand New Planes,Chiefs and Money for Cayman Airways
As it continues to flounder in a state ofunprofitable operations, government is planning a further injectionof public money into Cayman Airways (CAL) through purchasing afleet of new aircraft and continuing a cash subsidy.
Also in changes announced by Minister ofTourism, Hon McKeeva Bush, at a public meeting this week, thetroubled CAL will not only have a new board of directors but besaddled with an additional level of management NCB consultants,the company first hired to conduct a review of the airline's operations making the already burdened company operate under a fivetiered hierachy of decision-makers.
Addressing just over 300 people at the WestBay Primary School hall on the evening of Wednesday, 15 August,Mr Bush disclosed plans to buy two new 737-700s and a pre-ownedDash-8 aircraft to replace its current aged fleet of three 737-200planes and that a cash subsidy of at least $5 million will continuefor another three to five years.
Against a backdrop of this airline havingrung up an operating deficit of some $25 million dollars and aprojected continuation of losses the senior government ministerspoke of another $12 million being dished out for the packagethat covers acquisition of the new fleet.
A straw poll taken at the meeting as anunscientific sound-out of the people's opinion on the amount ofannual burden citizens should bear for this airline, 47 per centof the 173 respondents said $320, 35 per cent said $540 and 18per cent suggested $430.
On the question of whether government shouldretain ownership of the airline, 81 per cent of the 307 respondentssaid yes.
The command chain for CAL begins with ExCo,then the Minister with Portfolio responsibility for it, the boardof directors, consultants NCB, and company management.
For the consultants he outlined a favourabledeal for NCB in which that firm, headed by Mr Naul Bodden, willreceive three per cent of any cost saved in CAL's operations andthe amount leaps to 10 per cent should the carrier become profitable.Additionally, NCB executives are entitled to an out-of-pocketallowance, the definition and limit of which has not been announcedpublicly.
The 39-seater Dash-8 is to service the CaymanBrac route.
Cayman Net News understands, however, thatavailable to the company's group of decision-makers are still-on-the-tablepossible deals with two local and one overseas commuter carrierowners to service the Cayman Brac route at no additional costto people.
The Finance Committee of the LegislativeAssembly was still in debate to consider NCB's recommendationsand their appointment up to Cayman Net News press time. The outcomeof this and further developments will be posted on the publication'swebsite: www.caymannetnews.com as information becomes available.