SF Gate: Struggling Trinidadian airline lays off a quarter of its work force

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Tuesday, January 28, 2003 (AP)
Struggling Trinidadian airline lays off a quarter of its work force
MICHAEL SMITH, Associated Press Writer


   (01-28) 16:33 PST PORT-OF-SPAIN, Trinidad (AP) --
   Trinidad's main carrier, BWIA West Indies Airways Ltd., laid off more th=
an
600 employees on Tuesday while the airline struggles with continuing weak
travel demand since the 2001 terror attacks.
   The 617 workers, including mechanics and customer service agents, make up
about 25 percent of the airline's 2,400 employees.
   The layoffs are effective immediately, but the company will pay the
workers for another 45 days, said Christopher Abraham, president of one of
the unions affected by the layoffs.
   BWIA management has blamed the company's losses on the worldwide economic
slowdown and the drop in air passengers following the attacks on the
United States.
   Trinidad's government, which owns a one-third stake in BWIA, agreed in
November to lend the company $13 million to help it restructure. To get
the federal loan, the company must adopt a plan by Saturday to achieve
monthly cost savings of $1.4 million.
   The airline is working to reduce its fleet as part of its cost-saving
efforts. It has also laid off about 40 pilots because of the changes and
will contract out maintenance work to save money, BWIA said.
   Other airlines in the region have suffered similar losses, prompting
government officials to talk of merging them to form a Caribbean airline
with Air Jamaica and Antigua-based LIAT.
   BWIA generates about $260 million in annual revenues with flights to
Miami, New York, Washington and 19 other destinations in the Caribbean,
Canada, South America and England.

On the Net:
   www.bwee.com

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Copyright 2003 AP

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