BWIA BAILOUT

The impounding of two BWIA West Indies Airways Limited aircraft during last week by their lessors, along with the immobilising of a third aircraft until payment for the work done on an engine which had been sent for repairs has  raised serious questions. Already, millions of taxpayers’ dollars have been used by Government to bail out the airline, seen as critical to the maintaining of air transport to, from and through the Region, and the amount of money still needed appears endless. The Government is now questioning the information it is receiving from the airline.

Was BWIA’s indebtedness to the International Lease Finance Corporation (ILFG), and the possibility that aircraft could be seized made known in advance to Government?  BWIA’s head Conrad Aleong has denied that BWIA is not being transparent with the Government. But what is the true picture? The cash strapped airline had a duty to advise the Government fully of its financial liabilities, as well as to any possibility that its leased planes were in danger of being impounded.

We would like to believe that this had been done. Is the proverbial Sword of Damocles hanging over any more aircraft or engines?  And is Government fully apprised of the situation?  Government must advise the taypaying public if it is, as well as state whether any further impoundings are possible, and its proposed plan of action, if any. The impounding of its planes is not good for the image of any airline. In addition, because of Government’s long association with BWIA, as owner from 1961, and now once around as minority shareholder, there is a sentimental attachment. But more importantly to the travelling public, as sentiment by itself does not guarantee viability, is that it is the principal carrier, not only throughout the region, but connecting Trinidad and Tobago and Caricom with the United States, Canada and the United Kingdom, and vice versa.

Of particular import is the crucial role that BWIA has played and is still playing in the development of markets, for example the Costa Rica market, as a result of which flights to that country began only on Thursday. Meanwhile, whether the trade unions in the aviation industry are prepared to accept it or not, the downturn in the United States economy from 2000, aggravated by the September 11, 2001 problems, have impacted adversely on the United States and the international airline industry. But while BWIA’s current problems can be attributed, largely, to the ongoing problems affecting the American economy, others are management problems, as well as the difficulties being experienced in getting the trade unions to appreciate that BWIA is not insulated from world events.

Still, Government must be frank with the country, not only with respect to how much financial assistance BWIA is asking of it, but the alternatives to its granting of any such aid. In view of the vital role of BWIA and the realities of the present international situation, Government should, nonetheless, insist on an increased presence on BWIA’s Board, as well as pursue its initiative with respect to a clearly needed review of the airline’s management structure.