Maroc - NEWSDAY.CO.TT - A la Une - 06/Nov 10:38

The struggles to establish a regional air carrier

PART IV The Dr Eric Williams government was determined to keep BWIA airborne to save the jobs of over 700 employees and to maintain air linkages within the Caribbean countries and the eastern seaboard of the United States with onward services to London. Premier Williams, in a statement to House of Representatives on March 23, 1962, spoke of the government's consideration of acquiring BWIA in response to the retrenchment proposed by the British Overseas Airways Corporation (BOAC). "Mindful of the imminence of the austerity plan proposed by BOAC and of its effect both on the air services in the area and on the number of people who would shortly be retrenched, the minister of industry, commerce, tourism and external communications therefore intervened on behalf of the TT government and requested the BOAC representatives on the board of BWIA to provide the TT government with certain information relating to the airline in order that the TT government could consider whether it should acquire the airline." He also requested and was granted a deferment of the BOAC austerity plan for three months. By letter dated June, 16, 1961, BOAC provided the information requested indicating that on the basis of the net assets of the airline as at March 31, 1961, the company placed on the airline a value of £1,034,036, or BWI$5,445,726 (The British West Indies dollar was the local currency of British Guiana and the Eastern Caribbean territories from 1949 to 1965). However, in order to negotiate with BWIA, it was necessary that independent technical advice be obtained. On August 18, 1961, Williams wrote to the secretary general of the International Civil Aviation Organisation (ICAO) seeking the services of C S Sundaram, who had served on the Tymms Commission. On August 23, the secretary general confirmed that Sundaram's services would be made available to the TT government. On August 31 1961, proposals were received from the federal government for the establishment of a national airline of the West Indies which envisaged among other things the purchase and liquidation of BWIA, and the formation of a West Indies National Airlines Co Ltd whose shareholding would be offered as follows: the West Indies and federal government – 51 per cent; West Indies nationals (including employees) – three per cent; BOAC 20 per cent; Trans Canada Airlines (if that company can be persuaded to participate) – five per cent; Jamaica government – 7.5 per cent; TT government – 7.5 per cent; Barbados government – three per cent; Windward and Leeward Islands governments – three per cent. The full-scale requirements for the establishment of the West Indian National Airlines were estimated by the federal government as $64,440,000, of which the TT government would contribute a total of $18,456,088. The federal government proposed that a meeting with unit governments should be held at federal house on October 2, 1961, to discuss these proposals. On September 19, 1961, the Jamaica referendum took place with its consequences to the Federation of the West Indies which are now history. [caption id="attachment_1188758" align="alignnone" width="878"] -[/caption] Suffice it to say that as a result, the position of the federal government now appeared to be insecure and participation by the TT government in a massive venture of the type proposed seemed inadvisable. However, the problem of maintaining existing air services in the area and of averting the threatened large-scale retrenchment of staff continued to be imminent, and on the basis of the report submitted by Sundaram on September 27, 1961, the TT government decided on October, 3, 1961, to accept responsibility for the continuance of the airline and to acquire the entire shareholding of BWIA. This responsibility fell to TT largely because the airline was based in Trinidad, and serious consideration had to be given to the 700 employees whose services would have had to be terminated. It must be stressed that this decision was not taken in competition with federal government plans, but as an unavoidable answer to the urgent problem outlined above. The decision of the TT government was as follows: (a) BWIA should be purchased as a going concern; (b) In its negotiations with BOAC, the assurance should be sought that that company would continue to make satisfactory pooling arrangements with BWIA after acquisition of the airline by the TT government; (c) The TT government should seek a review of the terms of the agreement between BOAC and BWIA for the charter of Viscount aircraft, Britannia, and jet aircraft; (d) BOAC should be offered 20 per cent of the equity capital of the airline; (e) In the event that BOAC was unwilling to take 20 per cent of the equity capital of the airline, a similar offer should be made to another reputable airline company; (f) Representatives of the TT government should meet representatives of BOAC on the following day to commence negotiations for the proposed purchase; (g) This government should notify the UK government, the federal government, and the governments of the unit territories of the West Indies as well as of British Guiana and British Honduras, of its intention to acquire BWIA; (h) When given the above notifications, this government should seek the assurance; (i) From all the above governments, it is stated that the licences held by BWIA would continue to be valid after the acquisition of the airline by the TT government; (j) From the UK government, that BWIA would continue to be a designated carrier after the acquisition of the airline by this government. The decisions at (g) and (h) were implemented the same day, October 3, 1961. Four days later, on October 7, 1961, a reply was received from the federal government offering its services in a co-ordination capacity in dealing with any problems that might arise affecting the continuation of direction services to any of the other unit territories, on securing of route rights, etc, as well as in any other that might be required. In the meantime, using as a basis the report submitted by Sundaram, this government had entered into negotiations with representatives of BOAC on October 4, 1961. These negotiations were completed on October 7, 1961, BOAC having agreed to acquisition from November 1, 1961, the price being $2.5 million. This was less than half the value originally placed on the airline by the company (BOAC).   The post The struggles to establish a regional air carrier appeared first on Trinidad and Tobago Newsday.