BWIA set to lose over $80m Trinidad Guardian, October 16, 2002 BWIA chairman, Lawrence Duprey, is estimating that the airline=92s full year= =20 loss will climb to $80.7 million as even as his management team, led by=20 chief executive officer Conrad Aleong, fight to see the company through the= =20 turbulent times. In a letter to shareholders mailed last week, Duprey said BWIA=92s half year= =20 results =96 a loss of some $54.34 million =96 reflected the industry=92s=20 condition in general =93where most full service airlines are sustaining=20 losses and suffering liquidity problems and some major carriers such as US= =20 Airways and United Airlines have filed for bankruptcy protection or are=20 about to do so.=94 He explained that while operating expenses for the first= =20 half year of 2002 were in fact reduced by $6.87 million, following cost=20 reduction initiatives, the September 11 attacks plummeted operating=20 revenues by $53.96 million. =93Most of this revenue shortfall occurred in the second quarter and are due= =20 to much lower average fares in the market. While the airline continues to implement cost reduction measures, we must=20 now take greater and more urgent steps to match lower revenues.=94 He said= =20 if the restructuring and reorganisation, now being undertaken by the=20 management team fails, =93it is my duty to inform you that BWIA will have no= =20 alternative but to place itself in the hands of its creditors=94. =93The board recognises that BWIA as a publicly traded company must produce= =20 profits, reinvest and pay shareholders dividends, or become a casualty of=20 the market place,=94 Duprey warned. Aleong said that he believes the= airline=20 can survive the current industry slump. He said BWIA had been through=20 worst and survived. =93Come November 1, BWIA will still be flying and with= =20 the expected contributions of our employees, there should be no reason why= =20 we would not be doing so for many, many years to come,=94 he said in a= letter=20 that was also sent to shareholders last week. The airline aims to reduce=20 its overheads and underutilisation and duplication of assets in order to=20 save at least $1 million a month. The owner of Roger's Trinbago Site: Roj (Roger James) *************************************************** escape email mailto:ejames@escape.ca Trinbago site: http://www.tntisland.com CBC Website http://www.tntisland.com/caribbeanbrassconnection/ The Trinbago Site of the Week: (ReadyMix) http://www.readymix.co.tt/ (ReadyMix Cement Ltd) courtesy of Roj Trinbago Website & TnT Web Directory Roj's Trinbago Website: http://www.tntisland.com TnT Web Directory: http://search.co.tt *********************************************************