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BWIA told: Shape up or fly out
- Monday 28, October-2002
by Orion Ganase Trinidad Express

The Government of Trinidad and Tobago last week read the riot act to BWIA:
either it shapes up or flies out.  The first warning came from Trade
Minister Ken Valley, who said the government would provide financial
assistance to the cash-strapped airline only under certain conditions,
insisting that the Government could no longer be BWIA's "port of first call".
Speaking at a breakfast seminar at Hilton Trinidad, Valley said: "While the
government is not averse to assisting, we will and cannot afford to, until
we feel comfortable that the management and workers of that airline realise
the reality, and contribute to the continuation of that airline."   Using
the example of Barbados, which does not have a national carrier, Valley
said should BWIA  go into receivership Trinidad and Tobago would survive.

"BWIA used to cost the government some hundred million per annum. We got
out of that situation. Is the population of Trinidad and Tobago prepared to
get back in that situation?" he asked.  "I do not want to have to divest
BWIA again," Valley said.  Later, at a post-Cabinet news briefing at
Whitehall, Prime Minister Patrick Manning said government wanted to be the
lender of last resort to BWIA, and would only intervene after the
stakeholders showed they were willing to make sacrifices to save the airline.

"Government is not averse to assisting BWIA, but  we need clear signals
from management, clear and unambiguous," was how Valley put it at the
AmCham seminar. "We [the Government] need BWIA, but I don't need BWIA at
all costs. I need an airline. Preferably BWIA," Valley said, adding that it
was ultimately up to management to set the tone for the continued viability
of the airline.  BWIA's director of corporate communications, Clint
Williams, told reporters after the seminar that  he believed the airline
would be able to satisfy  Valley's criteria.

"I must say it sounds encouraging. The reality, which we said all along, is
the employees can save an airline," he said, and called on workers to get
rid of the "State enterprise mentality".  Williams said in order for the
airline to survive it needed roughly US$13 million in financing.  "We are a
private company, we're on our own. We will get support but we have to earn
that right for the support by showing that we are a viable operation."  He
noted that BWIA has already received assistance from Barbados, where it is
responsible for roughly  29 per cent of the traffic.  Williams said the
Barbados Government had helped the airline promote the Manchester route and
recently waived the airline's landing fees.

Asked to respond to Valley's comment that should BWIA go into receivership
"so be it", Williams said: "That's the reality of the world. It simply does
not make sense to put money into something that appears  to be
haemorrhaging."   BWIA management met with staff late last week. Williams
said the airline told workers that it had cut its non-labour costs by
US$700 000 per month as planned and it was now up to workers to help BWIA
reduce monthly concession payments by US$300 000.



The owner of Roger's Trinbago Site:
Roj (Roger James)
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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:
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(Radio Station I95.5FM)
courtesy of Roj Trinbago Website & TnT Web Directory
Roj's Trinbago Website: http://www.tntisland.com
TnT Web Directory: http://search.co.tt
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