BWIA continues to record huge losses despite a change in corporate image and identity. (FP)

by JULIA RAWLINS

CARIBBEAN TRAVELLERS, it would appear, have always had a love-hate relationship with BWIA.

In fact, there was a time when its initials seemed to be interpreted more as "But Will It Arrive" than British West Indian Airways, as it used to be called. And while many across the region also tended over the years to see it more as a Trinidadian airline than a Caribbean carrier, not many would wish to see its demise.

That is particularly the case in Barbados, where the airline accounts for a significant amount of the traffic passing through Grantley Adams International Airport daily. That's why its current financial troubles, and the anticipated announcement today or tomorrow by the Patrick Manning Administration in Trinidad, on the future of the airline is of such critical importance.

After 66 years in the skies, the future of the regional carrier has never been more uncertain, amidst rumours that it is to be closed down to make way for another entity called Caribbean Airlines.

Over the years, governments have sought to keep the airline's engines running, but in light of recent developments the future of the carrier looks bleak.

But the airline was not always in this position.

BWIA came into being in 1940 during a collapse of communications and air services between Trinidad and Barbados. Not until November 27 of that year did it start operations with a daily service between the two states.

Soon after, the airline was able to expand its routes and fleet.

Seven years later, BWIA was bought by British South American Airways and temporarily took the name British International Airways.

A year later, the original name of British West Indian Airways (BWIA) was reinstated.

In 1956, Leeward Islands Air Transport (LIAT) was formed with BWIA holding controlling interest, to make flights into the small Leeward Islands possible.

By 1961 the Trinidad and Tobago government had purchased the airline and, six years later, announced that it had accepted a proposal for the reorganisation, financing and expansion of the airline.

In 1995, BWIA International Airways Limited was incorporated on February 15, and by February 22 the Trinidad and Tobago government completed its privatisation. The government retained 33.5 per cent of the airline's stock.

However, it went on to be the Best Airline To The Caribbean three years in a row from 1996.

The airline was also the first regional carrier to offer e-ticketing in 2000, when it was again voted Best Airline To The Caribbean.

Later the same year it celebrated its 60th year of service to the Caribbean, and by December had issued an initial public offering of 12 million shares where investors from Trinidad and Tobago were invited.

The following year, the airline started operating one Dash 8 aircraft, starting the process of a low-cost strategy with BWIA as the single largest shareholder.

And by December the airline had joined forces with LIAT, paving the way for connections from BWIA's international destinations to and from LIAT's
wide regional network.

Some suggest things started going downhill when governments became involved in the airline's business. But, history showed the airline taking a nosedive soon after the September 11, 2001 attacks on the United States, when BWIA was forced to reduce its flights there.

By 2002, like other carriers, BWIA had suffered historic losses in revenue as the travel market continued to reel from the 9/11 attacks.

It was then that the airline's profits nosedived and its downward financial spiral began.

In the period July to September 30, the airline made just US$521 000, compared to US$5.8 million during the same quarter in 2001.

Reports also suggested that it needed US$13 million in financing to keep creditors at bay.

Employees were sent home in January that year, and by February Caribbean travel agents' commissions had been slashed from nine per cent to six per cent.

By March, staff reductions had started and 141 positions were made redundant.

Nearing the end of the year, the airline sent out an S.O.S. to the Trinidad and Tobago government for funding, and was required to save US$1.4 million monthly.

Still this was not enough.

By 2002 the airline reported a net loss of US$28 million.

Things got even worse in 2003, starting with BWIA being taken to court by its shareholders and being charged with misrepresenting its December 2000 Initial Public Offering shares.

It was during this year that the first hint came that the airline may be shut down to make way for a new regional carrier, soon after it received a loan of TT$116.8 million (BDS$38 million) from the Trinidad government.

Two years later, it appeared as though BWIA was regaining altitude, as reports surfaced that it was soaring again.

After a high in 2001 of US$270 million, the airline registered US$255 million in 2002, and further declined to US$246 million in 2003.

Things however turned around in 2004 with the airline making US$277 million in total revenue.

But, the skies turned cloudy again last year after rising fuel prices reduced the airline's profits by 80 per cent.

Once again, the Trinidad government gave an injection of TT$23 million, and agreed to temporarily discontinue flights to a number of countries, including Cuba, Costa Rica, the Dominican Republic, Ireland, and Manchester in Britain.

However, recent talks are leaning in the direction of privatising BWIA, following discussions with officials for the government to remove itself from full participation in ownership. (JR-B)

Information for this article was sourced from the BWIA website at www.bwee.com and the Nation's Archives.