BWIA shareholders nervous

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BWIA shareholders nervous
By NADINE HOSEIN

Industrial action by a few misguided employees inflicted serious financial
damage and worsened an already bad situation, said Conrad Aleong, CEO of
BWIA in a letter to the airline's workers, yesterday. "The fact is that
BWIA is now on a slippery slope. The revenue loss from cancellations and
delays is estimated to be US$2.5 million. In addition, this disrupted our
customers, placed heavier work burdens on you and caused us to transfer
money to other carriers who accepted our passengers," said Aleong. The
airline was forced to ask the Barbados government for financial assistance
to continue to carry out the Manchester route, a recent addition to its
list of destinations.  The airline also asked the Barbados government for
financial support to combat the events of September 11, but this is still
under review, said Aleong in an interview on Tuesday. In his letter to his
employees, Aleong posed the question: What do we do next? "How do we find a
way forward to continue to pay salaries, fuel, aircraft leases and other
suppliers bills? We have to face the reality that we are at virtually the
same place, on the brink, as we were in 1998," said Aleong.

Aleong also said employees will be asked to choose what they want to
sacrifice to save the airline and their jobs through voluntary pay cuts.
"It may be through change in work and rest rules, vacation reduction or
other means or combinations. But sacrifice we must!" said Aleong. Don
Mullings, Investment Manager for Borse Securities said they have had a few
calls from seriously concerned shareholders of BWIA. He also said there
will be a loss of confidence in the company by shareholders because of the
threat by the company's chairman Lawrence Duprey, to pull out. "This is a
very serious situation and shareholders need some indication of when it
will be resolved and how," said Mullings. The airline's share price remains
unchanged at $2.75 at the close of trading yesterday. Robert Myers, a
Broker with CMMB said investors will have a hard time trying to sell their
shares right now because there are absolutely no buyers on the market.
However, he added the brokers have not received any calls of concern from
the shareholders of the airline.



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