BWIA board agrees to management review

The BWIA board has up until the end of July to give Government details of the proposed salary cuts for executive management and other staff.

That was one of the decisions which came out of a meeting between the BWIA board and the Cabinet- appointed committee led by Dr Lenny Saith Tuesday. Management and unions are now in talks over the salary cuts which were among the conditions for a $116 Government bailout of the airline according to a release yesterday. The release states that salary cuts are were to take effect from April 1 but management has stated that they will take effect from May. The board has also promised an early review of the airline’s management team “to effect any transition in an orderly manner”. The Saith-led committee was set up three weeks ago to deal with the conditions attached to the bail out. The board met with the committee to clarify some of the issues outlined by Government when it announced the bailout. The result was a timetable on the conditions laid down by Government three weeks ago. There is no word yet, though, on the consultant to be hired to oversee the restructuring of the airline.

The board also has until the end of July to tell Government what role private sector shareholders will play in the interim financing of the airline. Junior Finance Minister Ken Valley had noted that while Government was helping the airline, there was no word from the major private sector shareholders. Another issue is that BWIA has to , by the end of the week, submit to Government via the Civil Aviation Authority its recommendations on the regulatory changes needed to meet the requirement of increased productivity of flight staff through the revision of work and rest regulations. For its part, Government will finalise required Civil Aviation legislation now before Parliament to acheive Category I status July. The board also has until the end of the week to present a revised policy on free and rebated travel by BWIA staff and retirees, particularly to eliminate denied boarding to revenue passengers.