BWIA INTERNATIONAL Airlines says a poor fourth quarter has "temporarily derailed" the Caribbean carrier's financial recovery following privatisation in February 1995. Despite this, the airline has posted a reduced operating loss for 1995 of $3.6 million, down from $9.4 million in 1994.
President Edward Wegel blamed BWIA's poor fourth quarter on "...uncontrollable factors such as weather-related cancellations, which affected revenues, and unbudgeted schedule-related cancellations, which increased our costs". BWIA's ageing Lockheed L-1011s incurred higher maintenance costs, he says.
Wegel says that he plans to "...streamline the organisation and institute high-cost controls to return the airline to sustained profitability". He expects revenues to increase when new Airbus A320s and A340s enter service, beginning in June.
Edward Acker, who led the consortium which privatised BWIA, has stepped down after one year as chairman and chief executive of the Caribbean airline.
Source: Flight International
