Rowley: Govt calls in lessors to save BWIA

GOVERNMENT has called in lessors, International Lease Finance Corporation (ILFC), the company that seized two BWIA planes, to prevent them from enforcing a US court order that would allow ILFC to seize all BWIA’s remaining aircraft by 5 pm yesterday and ground the national air carrier.

This was revealed yesterday by Planning Minister Dr Keith Rowley, acting chairman of the Inter-Ministerial Committee on BWIA, who was optimistic that ILFC’s agreement to meet with Government, coupled with an appeal by BWIA for more time, will keep the airline operational past the 5 pm deadline. Addressing a news conference at the Ministry of Finance, Dr Rowley indicated that following the aircraft’s seizure, the situation had “considerably worsened”. He said before Government could disburse a $116.8 million payment to the airline, “BWIA advanced documents to us dated May 21 which indicated that all of its aircraft would face similar action as of five o’clock today, Tuesday.”

Rowley further revealed: “The leasing company issued BWIA with an ultimatum dated May 23, indicating, that if by this afternoon five o’clock, BWIA does not pay US$5.5 million and on top of that, if BWIA does not voluntarily enter into a US court and accept judgment of the most onerous kind, that they could and would call in the lease on all the other aircraft.” He said ILFC’s actions have created a domino effect with the other creditors making demands on BWIA for outstanding debt, and the airline “is facing a demand for approximately US$100 million now.”

The Minister said discussions with BWIA’s directors revealed “that what we are dealing with is an out and out bankruptcy.” However Rowley said Government was still prepared to “go the extra mile” with BWIA and Junior Finance Minister Christine Sahadeo has convinced ILFC within the next 48 to 72 hours to come to Trinidad and talk with Government about ways of saving BWIA. He said the present state of affairs requires approximately $28 million to keep BWIA operational, and most of BWIA’s shareholders “have virtually written off their investments.” Rowley added that while Government will keep its options open, assuming control of the BWIA was not being pursued at this time. Asked whether changing the management’s structure and particularly removing Conrad Aleong as CEO would restore investor confidence in BWIA, Rowley replied: “This is not about Conrad Aleong. This is about BWIA.”  He recalled that while a pre-condition for governmental financial aid to BWIA was a management review exercise by the company, the bigger picture had to be looked at. 

Rowley side-stepped questions about whether Government trusted information provided by BWIA on its financial status and suggestions for an independent auditing of the company’s books. While stressing Government would do all it could to save BWIA, Rowley said there was a limit to its help and it would not be the Government’s fault if the airline went under. Trade Minister Ken Valley said while BWIA’s current plight would affect Government’s plan’s to position the country as the gateway to Latin America, he was still hopeful that BWIA would be the principal airline in that venture.