BWIA gets loan from govt

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BWIA gets loan from govt
By Curtis Rampersad, Trinidad Express

Cash-strapped national airline BWIA is in the process of receiving a letter
of comfort from the Government to seek a US$7.7 million loan to pay
creditors and continue as a viable airline. BWIA Corporate Communications
director Clint Williams confirmed that the airline's management was
completing the paperwork for the letter of comfort and had met with the
Government. The letter followed a demonstration by BWIA that it could save
US$1.4 million a month through a new business model which out-sourced ramp
operations, mechanical and engineering heavy aircraft check departments and
duty free services. The initiative also included retrenchment of 617
workers, the majority of whom were served termination letters on Tuesday.
Williams said the Government was "comfortable" with BWIA's cost-savings
plan and the airline was "moving swiftly" towards receiving the letter of
comfort.

BWIA has already received US$2 million and an initial letter of comfort
from the Government to borrow US$4 million towards settling its debts and
continuing operations. Its Duty Free operations have been closed for
renovations over the next week. The Piarco store was closed after workers
were separated on Tuesday. A local service provider has entered into a
franchise arrangement with BWIA to operate the store.  BWIA flight
operations at Piarco were good yesterday, Williams said, explaining that
the airline had an 82 per cent on time rate for flights. BWIA's $2.25 stock
price held steady on the local market yesterday with just 100 shares
traded. West Indies Stockbrokers Ltd's managing director Peter Clarke said
if BWIA returned to profitability, the share price might rebound, but
investors would be taking a wait-and-see approach in the interim

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