Regional heads inch closer to Caribbean airline

THE FORMATION of a single Caribbean airline came one step closer to reality yesterday when Prime Minister Patrick Manning and St Vincent and the Grenadines (SVG) PM Dr Ralph Gonsalves announced the formation of a company to serve as the forerunner to an eventual merger between BWIA and LIAT. Addressing a news conference at the Central Bank Towers, both leaders said yesterday’s agreement between the Governments of Trinidad and Tobago, SVG, Barbados and Antigua/ Barbuda and airline representatives could pave the way for major decisions on regional air transport to be made at the June 28 Caricom Heads of Government Summit in Montego Bay, Jamaica. The agreement will see the incorporation in TT within 14 days of the Caribbean Airlines Holding Limited (CAHL) which will eventually hold shares in the restructured BWIA and LIAT while a technical co-ordinator will be appointed by July 15 to prepare and coordinate the implementation of a detailed plan for CAHL’s creation, as well as restructure and rationalise BWIA and LIAT. PM Gonsalves said this company would develop “a clear nexus between BWIA and LIAT” and this was vital to the creation of the Caribbean Single Market and Economy and regional integration. “The governments here present see the continuation of BWIA and LIAT as matters of strategic importance. It is inconsistent with the notion of building a community and not have communication, in this case air transportation over which we have some influence,” he declared.

Reflecting on the financial woes of both airlines, Manning said the formation of a single regional carrier had “come out of adversity” and is a longstanding aspiration of all regional governments. The PM hinted that based on yesterday’s meeting, “something very positive” could emerge at the upcoming Caricom summit. He was optimistic that other regional airlines would eventually come on board. Manning said TT will initially pay for the technical coordinator’s services and those funds would be converted to equity within CAHL. He added that all regional governments will eventually own shares in the new airline. The agreement also calls upon BWIA and LIAT to accelerate their restructuring efforts as a pre-condition for any further public sector participation. Gonsalves said the four governments were cognisant of the progress made by the airlines to date and “reaffirmed their commitment to satisfy the financial arrangements made at their meeting of April 13, 2003 to take LIAT  to the end of 2003”. BWIA Corporate Manager Nelson Tom Yew hailed yesterday’s decision as the way forward for  BWIA and regional air transport. Asked if he expected opposition to the plan from BWIA’s unions regarding labour concessions, Tom Yew said management has been meeting with the unions and has obtained certain concessions from them. The agreement also allows International Lease Finance Corporation (ILFC), which seized two BWIA aircraft last month, or any other corporate entity to become involved in the establishment of the new company. An eleventh hour intervention by Government secured the release of the planes and 120 days of breathing space for BWIA to put its house in order. Speaking with Newsday afterwards, Manning said he was very concerned about the health of former PNM government Minister Gerard Montano and would be seeking to get an update on his medical condition.