MARY KIRBY / WASHINGTON DC
Carrier hopeful of receiving government assistance as it outlines union concessions and cost-cutting measures
BWIA West Indies Airways is cautiously optimistic it will secure government assistance this month and avoid bankruptcy, after its pilots agreed to concessions. Other employee groups continue to debate additional cuts. The airline aims to have a restructuring plan in place for its board meeting this week.
The loss-making carrier has entered negotiations with Trinidad & Tobago government officials in the hope of winning a $13 million bailout, of which it anticipates $10 million would come in the form of a loan and the rest as a grant. "The $13 million will get creditors much more up to date with payments. We will also be asking them to spread the balance of payment over time," says BWIA.
A decision by island governments in the Caribbean to provide BWIA partner Liat with new funding has also buoyed BWIA's chances of receiving assistance.
Key to securing aid, however, is BWIA's ability to slash additional costs to achieve savings of $1 million a month. BWIA has already cut $670,000 in non-labour costs, and $160,000 in labour costs - a significant portion of which was agreed to by pilots. The company has also resumed talks with the Aviation, Communication and Allied Workers' Union, which represents over half of BWIA's 3,000 employees and recently voted to turn down most of management's proposals.
BWIA chief executive Conrad Aleong says: "It was a reasonable request to help find savings in areas where we pay third parties such as hotel bills. The pilots understood this and have given 100%. We hope others will now follow their lead."
Management has also returned to the drawing board to identify additional cost-cutting areas. One option being considered is to form a joint venture company that would provide Bombardier Dash 8 maintenance to airlines throughout the region, now that BWIA's own BWee Express Dash 8 airline is being shut down.
Source: Flight International
