Liat/BWIA merger ?by June?

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Liat/BWIA merger =91by June=92
Express 04.14.03

BRIDGETOWN=96A merger of two of the region=92s seriously cash-strapped=20
airlines, BWIA and Liat, seems set to become a reality by the end of June.=
=20
Indication of the two becoming a single carrier=96a development, long mooted=
=20
by some regional governments and airline officials=96came at the conclusion=
=20
of two separate meetings in Barbados over the weekend. Prime Minister=20
Patrick Manning was one of four participating Caribbean Community leaders=20
in the meetings but no official statement has been made locally about the=20
planned merger. He flew into Barbados yesterday for the meeting and left=20
later in the day. The first round of meetings in Barbados took place on=20
Friday with an adjournment for inconclusive matters to be considered=20
yesterday by the chief financial advisers of the four participating=20
countries. Both meetings were hosted by Prime Minister Owen Arthur of=
 Barbados

Also participating along with Manning and Arthur were the Prime Ministers=20
of Antigua and Barbuda (Lester Bird, on Friday only); and Ralph Gonsalves=20
of St Vincent and the Grenadines who has lead responsibility among Caricom=
=20
heads of government for air transportation. At yesterday=92s meeting Bird=
 was=20
represented by Deputy Prime Minister Robin Yearwood. But Prime Ministers=20
Manning and Arthur left Prime Minister Gonsalves to brief the media on=20
aspects of their deliberations and decisions. According to Gonsalves, a=20
decision had been reached in principle to transform BWIA and Liat into one=
=20
carrier to serve the region. A technical team is to be established shortly,=
=20
he said, to submit proposals on =93the appropriate structure for a single=20
carrier=94 and the most effective strategy to determine attainment of that=
=20
objective. Prime Minister Gonsalves also disclosed that an agreement was=20
reached on an interim financial package to ensure that Liat which, like=20
BWIA, is faced with a serious debt burden, is kept afloat until the=20
proposed merger plan becomes operational.

Reports out of Barbados reaching the Express indicated that Trinidad and=20
Tobago will make available to the shareholder governments of Liat=20
approximately EC$12.5 million. The rescue package will also include EC$4.8=
=20
million to be provided by Antigua and Barbuda; EC$3 million by Barbados;=20
EC$2.5 million from St Vincent and the Grenadines and EC$300,000 by=20
Grenada. Prime Minister Manning, who had flown back home from Barbados=20
following the conclusion of Friday=92s meeting and returned in time for the=
=20
resumption of yesterday=92s follow-up session, was unavailable last evening=
=20
for comment on Trinidad and Tobago=92s involvement in the forthcoming merger=
=20
plan of BWIA and Liat. But from indications given following the conclusion=
=20
of yesterday=92s meeting in Barbados, the EC$12.5 million from Trinidad and=
=20
Tobago to help in the rescue package for Liat will be in the form of a loan=
=20
repayable in five years

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Roj (Roger James)

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