BWIA all over again at CAL

And we now learn that US$200 million is required to buy nine short-haul aircraft. We must of course first question why these planes are not being leased. Since the airline has not earned a profit of US$200 million, more debt is the inevitable consequence.

The last rescue a la Lok Jack, cost taxpayers US$359 million. It paid off all debts, rebranded the carrier into a no-frills, low cost, high efficiency, debt free airline with 55 percent less staff than its predecessor. Transition personnel collected US$33 million, US$26 million was shared out to re-engineer Information Technology and refurbish the fleet, and it cost US$15 million to redeliver leased Airbus aircraft. We stuffed the balance sheet with US$50 million in operating capital.

Every citizen who pays taxes, be it PAYE, VAT, Customs Duty, etc, contributed to the above as a shareholders of all public companies. And if even a miniscule shareholder of the much smaller private publicly listed companies is entitled by law to receive published audited financial statements within three months of year end, and quarterly reports during the year, why does this standard not apply to Caribbean Airlines, Petrotrin, CNMG, UTT, and so on? Why should not these companies hold general meetings at which we taxpayers can ask questions?

We ought to be told why, because sooner than later, our taxes will certainly be used for another airline bail out.

There is this enduring TT policy that Government must dominate the economy through public ownership. But we surely do not need a national airline. What does it gain us, save self esteem? Far better, and less expensive, to sell it to a major carrier, on the contracted conditions : 1) we guarantee a return consistent with that carrier’s other operations 2) majority of cabin and maintenance staff are local 3) we decide on the routes, frequency, and fares. The economies of Scale flowing from consolidating administrative costs will make the airline profitable, or at minimum reduce significantly the regular cash burden of the suffering taxpayer. And there will still be the smiling faces and local food.

Johnson Singh

Carapichaima