Max Kingsley-Jones/LONDON
BWIA International Airways is poised to undergo a major restructuring, including the setting up of a regional division.
The restructuring, which was expected to receive board approval as Flight International closed for press, will see the airline divided into four separate profit centres covering international operations, regional services, maintenance/ training and cargo, under a central holding company.
The restructured group will also incorporate more competitive employment contracts to ensure that costs remain under control.
The plan has been masterminded by BWIA president Conrad Aleong, who rejoined the airline last year having overseen its privatisation process during 1995.
The priority development within the restructuring will be the setting up of a regional division, BWIA Express. The first of up to four recently ordered Bombardier Dash 8-300s will be delivered early this year for island-hopping services within the Caribbean.
The regional move casts doubt on the future of BWIA's involvement in the region's incumbent short haul carrier, LIAT, in which it holds a 29% stake. BWIA has previously indicated that if there is not an early reversal of fortunes at the troubled LIAT, then it would expand its own short-haul network independently.
The creation of the short-haul airline is a departure for BWIA, which has traditionally concentrated on medium and long-haul operations. The airline's smallest aircraft is the Boeing MD-80, five of which are operated, and the fleet also includes four long-range Lockheed L-1011 TriStar 500s.
BWIA expects to return a small operating profit for 1998, its first in its 58-year history.
Source: Flight International
