Max Kingsley-Jones/LONDON
NEW BWIA International chief executive Gilles Filiatreault is to present to a meeting of the main board on 16 August a new strategy for the Caribbean carrier, just 11 days after his appointment was made public.
BWIA announced the elevation of the former boss of Caribbean regional LIAT on 5 August. Filiatreault joins the airline after undertaking a rapid privatisation plan and turn-around at LIAT, and has been tasked with quickly improving the West Indian flag carrier's efficiency and profitability.
The airline reported a loss of $3.6 million in 1995, and lost $1 million in the first quarter of 1996. Filiatreault will attempt to improve the carrier's fortunes in the "shortest possible time-frame", says BWIA. He is evaluating all aspects of the airline's operations and strategies, before making his recommendations at the 16 August meeting. The appointment comes some six months after the resignation of former chairman Edward Acker and chief executive Edward Wegel. Before his resignation in February, Acker oversaw the privatisation of BWIA, which resulted in the airline becoming majority-owned by three private investors. The Trinidad and Tobago Government, retains a 33.5% share, while 15.5% is held by the employees. BWIA itself holds a 29% shareholding in LIAT.
BWIA's fleet-renewal plan has undergone several revamps over the past 12 months, and will be examined by Filiatreault as part of his strategic analysis. The first of three leased Airbus A321s was delivered in July, and the acquisition of up to eight is envisaged. The airline has a firm order with Airbus for two A340-300s, which were originally scheduled for delivery in late 1996. These are not now due until 1997, and the order is subject to a re-evaluation by Filiatreault.
Meanwhile, BWIA confirms that discussions have been held over recent months "at board level" with Virgin Atlantic about a partnership. Virgin says that it was approached by BWIA four months ago about co-operation and, possibly, a financial investment.
Virgin has offered the airline a "menu of options" from marketing alliance/code-share, to the taking of a shareholding. Virgin says that, should BWIA wish for it to make a financial investment, "-it is our intention to take a minority stake [27%]. If further capital is required, however-we will be prepared to increase this to 51%."
Although the UK carrier does not now serve the Caribbean, it does have a large holiday-business market in the region. One of the options offered to BWIA is the joint operation of its services to London, possibly using Virgin aircraft.
Source: Flight International
