Maroc - NEWSDAY.CO.TT - A la Une - 23/Oct 07:57

The struggles to establish a regional air carrier

PART ONE The government left no stone unturned to achieve the financial viability of British West Indian Airways (BWIA) and to have it designated as the regional carrier. Since its acquisition, the government pumped billions of taxpayers’ dollars into BWIA and later its successor Caribbean Airlines Ltd (CAL) to keep the airline nose up. With the outbreak of World War II, air services by extra-regional airlines such as Pan American World Airways (Panama), Royal Dutch Airlines (KLM) and British Overseas Airways Corporation (BOAC) were suspended. The British colonies in the West Indies were virtually cut off from each other and the rest of the world as shipping lanes became vulnerable to attacks by German submarines. The UK Air Ministry suggested that an airline be established with its base in TT to serve the Caribbean region. Lady Young, the wife of Governor Sir Hubert Young, invited New Zealand-born Lowell Yerex, the founder of Transportes Aeros Centro Americanoes (TACA), to start up an airline in TT. In 1941, the agreement between Yerex and TT was, with the approval of the respective governors and the Colonial Office, extended to include the Leeward and Windward islands. These agreements were valid for ten years. In return for providing air services between the British territories in the Caribbean, the agreement protected Yerex from foreign competition on such routes. The government of Barbados declined to participate on the grounds that it was against the establishment of such a monopoly. Negotiations with Yerex concluded in May 1943 with the formation of British West Indian Airways (1943) Ltd (BWIA) as a public limited liability company. Yerex acquired two Lockheed Model 18 Lodestar aircraft and began daily services from TT to Barbados. [caption id="attachment_1186115" align="alignnone" width="1024"] Lockheed Loadstar aircraft -[/caption] The original allocation of the $1 million nominal share capital was 60 per cent to Yerex, 20 per cent to TT, and 20 per cent to the West Indian public. After the formation of BWIA, additional shares to the value of $502,700 were issued. In October 1943, Yerex contracted to sell 40 per cent of his BWIA holding to American interests in TACA. This would have resulted in a revised shareholding of 40 per cent for TACA, 20 per cent for Yerex and 40 per cent for the British West Indies, placing Yerex in a controlling position to move either in favour of American interests or West Indian according to the dictates of the moment. It was decided that the controlling interest in the company must remain British. At that time, BWIA needed further capital, and the board approved the issue of additional shares to TT valued at $200,000. This resulted in a revised share allocation of 43 per cent to TT, 40.5 per cent to Yerex and TACA and 16.5 per cent to other West Indian governments and private investors. Also in 1943, BWIA extended its route network throughout the islands of the Eastern Caribbean. BWIA was further contracted by the United States Army Engineer Department to operate services between Miami and Trinidad. BWIA also began airmail services between the islands at a rate of five cents per half-ounce letter. In 1944, BWIA extended its route network to Dominica, Jamaica and Belize, thereby establishing an airlink between the eastern and western Caribbean regions. In 1945, BWIA extended services to Georgetown, Guyana, following the construction of the airport at Atkinson Field, Timehri. On September 30, 1947, British South American Airways Corporation (BSAA) acquired the interests of BWIA. On June 24, 1948, BSAA restructured BWIA as a private limited company for the purposes of expanding the operations already commenced. [caption id="attachment_1186116" align="alignnone" width="878"] -[/caption] The new company did not commence operations in its own name until July 1, 1948. In the interim, operations were carried out in the name of British International Airways Ltd (BIAL), a subsidiary of BSAA. The share capital of the restructured BWIA was $3 million, of which $2.5 million was issued and $1,500,300 paid up. The new company, British West Indian Airways Ltd (BWIA), took over from its predecessor, the unexpired portion of an agreement made on January 24, 1994, between BWIA (1943) Ltd and the governments of TT, Leeward and Windward Islands. The new company was given the exclusive rights to: (1) To operate services between the various islands, with the services operated by Panama between Trinidad and Antigua not being regarded as an infringement of that right. (2) To carry all terminal mail between the various islands at the rate of $3 per pound and to carry transit mail, when required, at a rate of $1,000 per pound except terminal and transit mail to Barbados and between TT at the rate of $1,500 per month. (3) A quarterly subsidy was to be paid to the company equivalent to the amount paid by them in respect of customs duties, rents, rates and taxes, and landing fees. (4) Passenger fares were to be based on a maximum of 12 cents per mile, and goods were to be charged for at the rate of one per cent of the one-way passenger fare per pound. (5) Landing fields and aerodrome facilities were to be provided by the governments concerned at their expense. (6) The lease of a suitable site at Piarco Airport, Trinidad, was to be granted to the company. (7) The company was to use aircraft and equipment exclusively of British manufacture, provided that until suitable aircraft and equipment of British manufacture were available, aircraft and equipment of US manufacture could be used. The Airways Corporations Act, 1949, brought about the merger of BOAC and BSAA with effect from July 30. This resulted in a reorganisation of the board of the company with an increase in local representation. BOAC also acquired British Caribbean Airways Ltd, a Jamaican-based airline operating from Jamaica to Miami and Nassau, and merged its operations with those of BWIA. Navigation and engineering schools were also established in 1949 in Trinidad to improve the technical and operational standards. The balance of issued capital was fully paid up in 1950 to the total of $2,500,000 in 1953, following the demise of Caribbean International Airways, a local airline based in the Cayman Islands. BWIA took over the operation of their services between Jamaica and the Cayman Islands. This became part of the BWIA’s Miami to Jamaica route. To be continued in Part II The post The struggles to establish a regional air carrier appeared first on Trinidad and Tobago Newsday.