Airline Finance News - Latin America / Caribbean.

Edited by Aram Gesar, [e-mail] For more global news, data, analysis and features, please go to: http://www.AirGuideOnline.com/professional.htm Sep 18, 2006

BWIA West Indies Airways 

BWIA West Indies Airways, the money-losing Trinidad and Tobago carrier that unsuccessfully attempted multiple recoveries over the past decade, will shut down Dec. 31 and be replaced by a new carrier, Caribbean Airlines. CEO Peter Davies, who will continue to serve as the top executive at the new airline, decided that a shutdown and clean start were necessary when BWIA's four labor unions balked at concessions proposed in the carrier's latest restructuring plan. Union leaders countered that BWIA's demise was a long time coming and that Davies, who assumed control in March, is ignoring years of missteps in blaming labor for its failure. Although it considered not supporting a flag carrier, the T&T government agreed to transfer a $250 million capital injection intended for BWIA's restructuring into the launch of Caribbean Airlines. Davies said a "sizable portion" of that money will be used to pay off "a huge amount of liabilities" incurred by BWIA "so when Caribbean Airlines opens it will have a clean balance sheet." In an effort to expand revenue-generating potential beyond airline services, Caribbean also will "extend its engineering capability beyond its jet fleet" to perform "heavy maintenance and repair checks on its turboprop aircraft and for other carriers." BWIA said more information on the new airline will be forthcoming, but Davies indicated that the new entity will move away from competing with major international carriers on high-density routes, concentrating instead on "niche" services. Sep 12, 2006