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Cuts at all levels at BWIA
By Curtis Williams (Trinidad Express)

BWIA workers were yesterday bracing themselves as confirmation came that
staff at all levels of the airline would be sent home while the company
seeks to survive falling passenger loads. The airline's chief executive
officer Conrad Aleong said the exact number of workers to be retrenched has
not been determined but he was sure they had to go if the airline was to
avoid losing an estimated US$30 million in revenue during the next
financial year. Aleong said BWIA had to reduce its wage bill because
passenger loads had fallen 23 per cent during October and November last
year, immediately after the September 11 terrorist attack on the United
States and while loads were now down 12 per cent it was still unacceptable.
"If anything we took too long to move to cut employee cost because the US$9
million profit we made up to the third quarter of last year was gone by
November due to the fall in passengers;" Aleong told a news conference at
Sunjet House, Port of Spain. While employees are to be sent home, travel
agents will also feel the pinch as BWIA has decided to cut their commission
by one third from nine per cent to six per cent.

Aleong said: "Why should we be paying nine per cent in commission when
American Airlines is paying six per cent?"
Aleong said BWIA had taken all the measures possible to avoid sending home
employees including seeking to reduce fuel costs, reducing the commission
paid to travel agents, renegotiating ground handling agreements, making the
meals more affordable and returning two MD83 aircraft which were on lease.
Aleong explained: "There are certain costs which you can reduce. For
example, you can send back the MD83s because with the reduced loads you no
longer need them but there is so much you can do and unfortunately we have
to do this now." Aleong said no one could argue that BWIA should not look
at its wage bill when of the US$700,000 it spends each day $200,000 of that
is spent on employees.

The CEO said there were no sacred cows and he expected that from the
executive management to the foreign workers would be affected by the
layoffs. "We took a wage freeze last year and we asked the workers to do
the same and with this fall out if there is a need to reduce the management
or to cut cost in our foreign operations we will do it. There will be cost
cutting across the board." Aleong said. The airline is also seeking to
reduce costs by removing the ageing L10/11 from the London route and
replacing it with newer cost efficient planes. What has made BWIA's
situation even more difficult is that the airline cannot seek new more
profitable routes in the United States because the new Piarco International
Airport remained a category two airport having been recently
downgraded.  With respect to the intra island Tobago Express, Aleong said
he expected that airline to grow and to turn a profit. Aleong revealed that
BWIA was moving to purchase another aircraft to service the route.



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