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Govt fed-up with BWIA
By ANDY JOHNSON
Express 06.06.03

WITH Prime Minister Patrick Manning declaring that the Government was
"totally fed-up" with having to come to the rescue of BWIA, the Government
decided yesterday the airline should approach trade unions, representing
its workers, to seek further concessions on cost-cutting. This, Trade and
Industry Minister Ken Valley said, was the latest effort being made by the
Government as a condition for providing any more financial assistance to
the troubled airline. Valley also added that while the departure of BWIA
president and chief executive officer Conrad Aleong was welcome, there were
other measures regarding the sought-after management restructuring which
the board might consider. He said it was a matter for the board to look at
what else was necessary in the management restructuring that would put the
airline on a more solid footing to continue its operations.  He also said
it was his understanding an interim arrangement was in place for an
executive management structure with one person responsible for
administration and another for finance.

In the face of repeated questioning on this matter, Valley said the
Government could not and would not dictate to the BWIA board as to what
else it should do as far as restructuring of the management was
concerned.  Asked whether the Government was mandating the airline to break
existing agreements with the trade unions in seeking to negotiate these
concessions, Valley said it was clear to all concerned the airline would
not survive with the current arrangements in place. In response to another
question, Valley said he felt optimistic the unions representing workers at
BWIA would respond in a more positive manner this time to requests for
further concessions in the current circumstances. Unions representing the
workers at BWIA remained skeptical in the main when the airline under
Aleong sought a range of concessions aimed at reducing costs when the
bottom began falling out of its operations late last year.  Both Manning
and Valley were speaking during the post-Cabinet news conference at
Whitehall, Port of Spain.

Asked what his reaction was to the reported position taken by chairman
Lawrence Duprey in the current situation, Manning said as Minister of
Finance he "took note of it". He said he read in the newspapers the
comments attributed to Duprey, based on which "you are free to come to your
own conclusions, as, indeed, I am free to do so".  There was not more he
wished to say on the matter, he said, because the Government was not in the
business of issuing threats and also that the Government held to the
position it reserved the right to review the composition of the BWIA board
at the appropriate time. Pressed as to whether this ought to be the extent
of his response, against perceptions the Government was fed-up of having to
seek rescue for the airline, Manning said this was correct.

"You are absolutely correct that the Government is totally fed-up of this
and far from not knowing where we are heading, our discussions this morning
seem to be heading in a certain direction," Manning said. He added,
however, that the Government wanted to be guided by the considerations of
consultants who have been contracted to make recommendations on the way
forward for BWIA. He said the consultants were to meet on the matter
Sunday, following which there would likely be a Cabinet meeting on Monday
for further consideration of the issue. Under the rubric of Regional Air
Transportation, the crisis at BWIA and the continuing financial
difficulties affecting LIAT and Air Jamaica will form the basis of major
discussions at the upcoming 28th summit of Caricom heads of government in
Montego Bay, Jamaica at month's end. Those discussions will seek to push
ahead with considerations for the formation of a regional airline, a
long-held desire among many governments, airline and tourism industry
executives in the region.


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