Sep 2006 Financial News

Caribbean Airlines: a new airline for Trinidad and Tobago and the Caribbean

Sep 08, 2006

The Government of the Republic of Trinidad and Tobago, 97.188% shareholder of BWIA, has approved a substantial capital injection for the creation of a new regional airline, Caribbean Airlines based in Trinidad. Caribbean Airlines will have its base at Piarco, the international airport of Trinidad and will, subject to local and international regulatory approval commence operations early in 2007. It will provide regional air transport within the Caribbean and between the Caribbean and major international cities. BWIA will continue uninterrupted service to its valued customers whilst management ensures a seamless transition to Caribbean Airlines.

Caribbean Airlines will inherit the long, safe and respected experience of BWIA West Indies Airways, which, after 66 years of service will close. This heralds an exciting phase in air travel and aviation history in Trinidad and Tobago and the region.

Chief Executive Officer, Peter Davies confirmed that the equity injection will allow Caribbean Airlines to operate an effective, efficient and profitable customer oriented service reflecting the needs of the communities within the Caribbean. It will also ensure that the vital connections to world centers continue to reflect the increasing commercial and industrial importance of Trinidad and Tobago whilst recognizing the essential responsibilities of trade and community within the region. Mr. Davies also stated that the mandate he received through the Board of Directors from the Government of Trinidad and Tobago allowed him, the management and staff of BWIA, to recognize the dynamic changes that are affecting the global airline industry and to position Caribbean Airlines in an ever increasing competitive context.

He stated, “We are looking to the 21st century whilst being empathic to our historical past; determination, passion and focus will allow us to build a future and respond honorably to the loyalty that customers have demonstrated over the years”.

All tickets already purchased for travel on BWIA will be honoured by Caribbean Airlines and BWEE Frequent Flyer air miles and Club BWEE memberships will transfer and qualify on the new airline to ensure customer continuity and confidence.

BWIA will issue a detailed communication to all shareholders of BWIA, concerning the closure of the company and their shareholdings.

Representatives of BWIA and the Unions are holding discussions with respect to the closure of BWIA and the separation of employees. Current eligible BWIA employees will be offered separation packages and will be given the opportunity to apply for positions with Caribbean Airlines. The new packages will be competitive within the current airline market. BWIA will also assist employees with outplacement services to secure new opportunities.

Caribbean Airlines will extend its engineering capability beyond its jet fleet to include the ability to undertake heavy maintenance and repair checks on its turboprop aircraft and for other carriers.

Further details on Caribbean Airlines will be released during the next few weeks.

Source : http://www.bwee.com/
Friday, September 8, 2006.