Paul Lewis/MIAMI
BWIA International Airways is to move ahead with share offerings on stock markets in the Caribbean and USA in an effort to raise up to $100 million in capital to underwrite the acquisition of replacement widebody jets.
The Trinidadian carrier plans to make an initial public offering (IPO) on the Barbados, Jamaica and Trinidad exchanges as early as November, although it warns that the listing could slip into next year, depending on the response to pending privatisations. BWIA hopes to raise $10-15 million from the IPO, which treasurer Christian Anderson says would be used as a springboard to an international listing on New York's Nasdaq exchange "by the end of next year".
The airline has a capital base of $40 million, with 51% of equity privately placed and the rest held by the government, of which 15% is held in trust for employees.
Some of the new capital will be used to fund replacement of two BWIA Lockheed L-1011 TriStar 500s used on routes to London and Europe. BWIA aims to take a 25% stake in the new widebodies and finance the rest. Six ordered Boeing 737-800s will replace two other TriStars on shorter range services to New York and Toronto (although one may be retained as a freighter), as well as operating new routes to Boston, Houston and Washington DC.
Anderson says "lessors are literally knocking on our door offering fairly new aircraft", with possibilities on the market including six British Airways Boeing 767-300ERs, two 767s from Japan and the first of Singapore Airlines' Airbus A340-300s. With BWIA thought to prefer twinjets, the Airbus A330-200 is another option.
BWIA may also convert two Bombardier Dash 8-300Q options to boost services from Antigua, Barbados and Trinidad. The carrier operates two Dash 8s, with a third due in November.
Source: Flight International
