BWIA gets 10 years to repay US$13.7m By Jada Loutoo (Guardian 11.09.02) BWIA has 10 years in which to repay the US$13.7 million injection by Government and has to provide full disclosure on all aspects of its operations to a group of consultants hired by Government. But these are conditions which BWIA chief executive officer Conrad Aleong can live with. "The support of the Government has come at a perfect time," Aleong said in a statement yesterday, after Trade and Industry Minister Ken Valley disclosed Government's decision to bail out the troubled airline, in Parliament yesterday. Valley said an immediate cash injection of US$2 million will be given to BWIA. The airline will receive a further US$8 million by November 29, "in a manner to be determined by Government" and the remaining US$3 million will be given from January, 2003, over a period of six months. The sum of US$750,000 will also be used to finance "war risk insurance cover of BWIA," Valley said. "Once more we are faced with the financial difficulties of BWIA," he said. On Wednesday, Prime Minister Patrick Manning met with Aleong to discuss the airline's dire financial state. On Thursday, Government said it will help the airline, however with conditions. "Any cash injected by Government under this agreement will be treated as a loan," Valley told the House. BWIA will be charged interest, at the prevailing market rate, payable in semi-annual installments with a moratorium of 24 months on interest payments. Another condition of the loan requires BWIA to make principal repayments by means of a bullet payment at the end of the 10 years and provide its landing slots at Heathrow Airport in the UK, valued at US$10 million, as security. BWIA also has to agree to participate in a six-month study to be conducted by consultants employed Government to determine "further economies that can be derived from its operations and an appropriate structure for the airline in the context of regional air carrier integration," Valley said. BWIA also has to disclose to Government's consultants all aspects of its operations and provide by month's end its cost cutting proposals of US$1.4 million by January 31, 2003. In its statement, the airline said its Board voted yesterday to accept the terms set out by Government to qualify for the loan. The Board said the target of US$1.4 million in monthly savings met with its own thinking. Aleong admitted that it will be challenging to find another US$400,000 in monthly savings. "The road ahead will be one of utilising all possible methods to achieve the target set, which must include productivity improvements, but we know that it is in the best interest of the airline for the future," he said. 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 *********************************************************