MARY KIRBY / WASHINGTON DC
BWIA West Indies Airways must meet several more conditions before receiving the balance of a much-needed government bail-out. But the carrier says it now has reason to expect a turnaround in 2004.
Struggling BWIA has already accepted almost $9 million in aid from the Trinidad government to cover operating costs, but awaits the balance of an $18.5 million bail-out.
"We are still working towards meeting the contingencies set for us...to secure labour concessions and cost-cutting measures that will see ongoing savings," says the airline. The carrier also owes money to some of its recently dismissed employees, and continues to search for a new chief executive to fill the role recently vacated by Conrad Aleong.
Nonetheless, BWIA has renewed confidence it will eventually prosper, saying the government's assistance, plus recently improved loads, give it reason for "cautious optimism". In October, the carrier hopes to finally take delivery from International Lease Finance of its second Airbus A340-300 which has been deferred several times due to its inability to make consistent lease payments to the US lessor.
Meanwhile, Caribbean island governments are taking steps to create a new holding company that would oversee the operation of BWIA and Antigua-based regional Liat. Officials envisage BWIA and Liat would initially act as subsidiaries of the holding company, and maintain their identities and their route rights. Eventually, the two companies could be merged, and other regional airlines welcomed aboard as a single regional airline entity.
Source: Flight International
