Landlord waits on BWIA By JUHEL BROWNE T'dad Guardian 11.14.02 Landlords have been less patient with tenants who owe one month's rent. But the company from which BWIA leases most of its planes says it will continue to be patient with the airline. BWIA is presently owing that company, International Leasing Finance Corporation based in Montreal, Canada an unspecified sum. BWIA corporate communications director Clint Williams would only describe it as "considerable." "I think certainly the track record is that we have been providing a lot of assistance to BWIA for the last year and a half," said ILFC vice president Joseph Hermosillo. He was interviewed by telephone from Montreal where he has been paying a lot of attention to BWIA's plight. "We are glad to see the Government of Trinidad & Tobago is extending some help to BWIA as well," Hermosillo said. ILFC now awaits an official copy of BWIA's restructuring plan based on the on the conditions of Government's US$13 million loan. Hermosillo also said he is yet to see a copy of the loan's Memorandum of Understanding BWIA signed with the Government. Nonetheless, he believes Government's intervention, along with the support of creditors like ILFC will help revitalise the airline. "We want to help BWIA and we have been helping BWIA," Hermosillo said. Help that BWIA is most grateful for. After all, ILFC may be the most important of the airline's creditors awaiting outstanding payments. ILFC owns the six Boeing 737-800s in the BWIA fleet as well as the first A340. BWIA is even behind in its payments for the first A340 which arrived on June 16. Once BWIA completes its fleet rationalisation plans, which involves reducing the types of aircraft in its fleet from five to two, ILFC will pretty much own the fleet. Williams, in a previous interview said ILFC could reclaim its aircraft if it were unsatisfied with the BWIA's rebound plans. And this is where ILFC has helped BWIA the most. "We have not tried to repossess the airplanes," said Hermosillo. "We get requests everyday for the 737 800s. "We would have no problems placing the airplanes (with other airplanes if we had to." This has been done with other ILFC clients but Hermosillo said the company tries to avoid doing so as much as possible. "Unfortunately some carriers don't tell you (anything) and they just stop paying. We try to help those airlines who come to us first," he said. BWIA informed ILFC of its circumstances from the moment it was unable to meet its payments. Since September 11, 2001 many airlines began to experience heavy losses and as a result, some fell into debt to creditors like ILFC. Others, like Air Jamaica which leases some planes from ILFC, were previously able to meet their leasing payments. "I know they (Air Jamaica) are now experiencing some difficulties," said Hermosillo. Other ILFC clients include American Airlines, Continental Airlines and SouthWest Airlines. Hermosillo noted ILFC has been sympathetic to its clients as because of the downturn in global air passenger traffic since 9/11. Repossessing leased aircraft from its debtors is a last resort. "We are not trying to put airlines out of business," said Hermosillo. "Then we will be out of business." The International Civil Aviation Organisation expects a passenger traffic revival in 2004. ILFC believes BWIA will be around long after that. 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: (chgdev) http://www.chagdev.com/ (Chaguaramas Development Authority) courtesy of Roj Trinbago Website & TnT Web Directory Roj's Trinbago Website: http://www.tntisland.com TnT Web Directory: http://search.co.tt *********************************************************