Bajan bailout for BWIA? Nation News - Wednesday 30, October-2002 by Bernard Babb BARBADOS is said to be considering support for the cash-strapped regional carrier BWIA, but the extent of the support is uncertain. Well-placed sources told the Daily Nation some of the options included a reduction in airport fees, direct cash injection and marketing support. Government is reported to be very concerned about the health of the carrier, which is TT$88 million in debt, since it accounts for over 25 per cent of the air traffic into the island. It is unlikely, sources indicated, that a direct cash injection will be made to the ailing carrier, but greater marketing support could be offered, increasing the collaboration between the destination and the carrier. The airline, in which the Trinidad and Tobago government has a 35 per cent stake, has been facing difficult times as a result of turbulence in the global airline industry. For the first six months of the year BWIA reported a net loss of nearly US$9 million (TT$55 million) and company executives have said if a restructuring plan is not in place by the end of this month, the fate of the airline could be in the hands of its creditors. During the past week, BWIA indicated it was seeking a US$13 million (TT$80 million) bailout from the Trinidad government to stay afloat beyond October 31. 'Last resort' However, Prime Minister Patrick Manning said government should be considered the "lender of last resort" and the company and its workers needed to make sacrifices before a loan could be approved. "When they decide what they will do, then the government will decide what, if anything, it will do," Manning said. For weeks, the airline has been seeking to strike a deal with its 2 300 workers to help reduce costs and put expenses in line with revenues, but has encountered conflict with trade unions. It is a situation Barbados has been closely monitoring. Minister of Tourism Noel Lynch told the House of Assembly recently that any assistance Government could offer the airline would be important since BWIA was responsible for a significant percentage of air traffic into Barbados annually. Chairman of the Barbados Tourism Authority Hudson Husbands firmly believes BWIA must fly for Barbados' tourism to continue its rebound and positive impact on the economy. Because of BWIA's long and distinguished record, Husbands said it had also provided reliability and consistency of air access out of the most important tourism markets, like London, Manchester, Miami, New York, Toronto and Washington. Said a Barbadian hotelier: "BWIA and Barbados' tourism are inextricably linked . . . . Not only tourism but the wider Barbados travel market. The loss of BWIA, even for a month, would create significant dislocation out of all the major markets." BWIA, which flies to 22 destinations internationally, operates eight flights per day to Barbados from the major tourist markets and the Caribbean. Last year, it moved 558 944 passengers through Grantley Adams Airport among the 1.4 million it carried overall. 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: (I95.5FM) http://www.i955fm.com (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 *********************************************************