MARY KIRBY / WASHINGTON DC
Labour disputes and downturn could force fleet, schedule cuts and Heathrow slot sale
Financially struggling BWIA West Indies Airways is considering a drastic restructuring plan that could see its fleet and schedules slashed and some of its London Heathrow airport slots sold.
Trinidad & Tobago-based BWIA, which has been plagued by labour-related flight disruptions all summer, says it is reviewing "every aspect" of its business plan. Under consideration is a possible rationalisation of its fleet to just two types - Airbus A340s and Boeing 737s.
The carrier is also contemplating shutting down its Bwee Express regional operation, which uses three Bombardier Dash 8 Q300s for intra-Caribbean services. The carrier would then rely on LIAT, of which it owns 30%, for regional feed.
The carrier admits it may have to sell some of its valuable Heathrow slots. "That is not a decision we've made at this time, but everything is under consideration," says BWIA, which operates seven weekly services to Heathrow.
The proposed restructuring plan would see BWIA's fleet of one Airbus A340-300, six 737-800s, three Boeing MD-83s, and two Lockheed L-1011-300s reduced to just the A340 and the 737s.
BWIA intends to proceed with orders for one A340-300 and one 737-700. BWIA says it would also like to lease two more 737-800s, but admits it is not in final talks for those aircraft yet. "This is [the plan] in essence, but we may have to adjust the figure and not acquire as many 737s."
The carrier was badly affected by the downturn in demand for air travel following the 11 September terrorist attacks and has failed to secure much-needed cost concessions from it employees.
In a summer of discontent, actions by disgruntled union groups have led to costly flight delays and cancellations that have helped put the carrier in the red to the tune of $8.4 million during the first half of 2002.
BWIA says its final restructuring plan still needs board approval, but it hopes to have everything in place by March.
Source: Flight International
