End of BWIA nigh as Trinidad forms new carrier

[TAP-A343]

Trinidad and Tobago’s long-struggling flag carrier BWIA West Indies Airways within months will close down operations to be replaced by a new operator, Caribbean Airlines.

The move follows years of financial losses at BWIA, and a recent impasse in concessions talks between the carrier and its unions, which threatened its planned reorganisation.

Under the plan announced last week, Trinidad’s government - which owns over 97% of BWIA - has approved “a substantial capital injection” to facilitate the creation of Caribbean Airlines, which like its predecessor will be based at Trinidad’s Piarco airport.

BWIA will continue uninterrupted service while management transitions to Caribbean Airlines, which is expected to launch regional and international flights in early 2007.

Eligible BWIA employees will be offered separation packages and will be given the opportunity to apply for positions with Caribbean Airlines. However, BWIA notes that the new packages “will be competitive within the current airline market”.

All tickets already purchased for travel on BWIA will be honoured by Caribbean Airlines and frequent flyer memberships will be transferred to the new airline.

“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,” says BWIA chief executive Peter Davies, who took the helm at the financially ailing operator earlier this year.

He says Caribbean Airlines’ services will reflect the needs of the communities within the Caribbean.

Charged with spearheading BWIA’s turnaround, Davies says the mandate he received from the government, through BWIA’s board of directors, allowed management to recognize the dynamic changes that are affecting the global airline industry and to position Caribbean Airlines in an ever increasing competitive market.

This includes extending engineering capabilities beyond the carrier’s own fleet to include heavy maintenance and repair checks on other carrier’s turboprop aircraft.

According to Flight's fleet database ACAS, BWIA operates a fleet of two Airbus A340s and seven Boeing 737-800s. All but two aircraft are leased from International Lease Finance.

BWIA also owns 45% of Tobago Express and provides maintenance support for the carrier’s Bombardier Dash 8 fleet that operates on short-hop airbridge services between the islands of Trinidad and Tobago.

Further details on Caribbean Airlines will be released during the next few weeks. A detailed communication will be issued to shareholders, says BWIA.

Source: http://www.flightglobal.com/Articles...w+carrier.html

A practical way to avoid difficult negotiations with trade unions in the airline industry.

Regards.

[AA 1818]

This could potentially be a great thing for th Caribbean, but will probably just turn out to be another BWIA.

The truth is that there are sooo many things to consider:

The Management - The new carrier needs new management that is both innovative but still grounded. We need good decision making coupled with new ideas but still grounded enough to limit over expanding. The management of BWIA is the same as the Trinidadian Gov't - corrupt. We need a management team that is morally sound. Get a great managament team and in turn we will see the rude F/As and nasty ground crew turning it around. (or at least fire those that are troublesome and the great ones that are there will have a chance to flourish).

The Fleet - We have had so many problems with the A340s. The leases are soo expensive and the planes are not the most efficent. This is the perfect way to do a change in the long-haul fleet. Maybe 777s? 772LRs would be perfect for BWIA. The 772 will provide the best fit for their capacity on those routes and the range would be great. Maybe A340s again? There are many more out there to lease from since they organized their leases years ago.
The Dash-8s will be there for good. The 737s are not going anywhere, maybe some winglets though - those POS-YYZ routes would be much more efficent with winglets.

The Routes - ok, they have been hindered for so long.
North America:
ATL (soo many ex-patriates). DL will soon start the market for a reason. Maybe not daily service, but bi or tri-weeklyh makes sense.
MCO (or even SFB) was a money maker for "Pan Am III" so why not for them.
FLL (yeah, they have MIA I know), but Travelspan is making a killing out of FLL on that route to POS, why not them with a bi/tri weekly service too?
YYZ - doing well there but start capitilizing.

South America :
Guyana - More routes to Guyana. No Guyanese flag carrier = a major oppurtunity for the new airline to take that market. Offer some JFK-Guyana and some MIA-Guyana flights. That is a market that is untapped and primed for some serious service.
Venezuela - with the mess that the lunatic (that would be that idiot Chavez) put himself in, make POS a transit hub from Venezuelans going home. Make the price comparable to other airlines and you will see that people will come.
ABC - Aruba, Bonaire and Curaco - just get it done there. Connect them and you will get those passengers flying through POS in masses.
St.Marten - just to run some competition, run the SXM-CDG route bi-weekly. AF has a monopoly on that route and another option will be all to welcomed by many islanders.
Brazil - make POS an attractive stop for Brazilians. I mean, things aren't going to well for Varig - so advertise another alternative.

Europe:
U.K. - London will always be there for Trinis. Think about other destinations. Bi/Tri-Weekly to MAN should be an option.
France - Pull from the CDG-SXM route and get some market share. With time it will grow.

And when the long-haul fleet has some downtime make them run the routes to YYZ (simply to surprise the spotters - and to get some precious cargo), the routes between TAB and the U.K. (Virgin and BA have been making a killing there) and the routes to MIA (haha see the reason for YYZ).

The Amenities - the new airline needs to worry about class. With BWIA there was a major problem - a lack of class an professionalism. Hell, there was a serious deficency. We need to worry about those things. For example, on the First Class product take a great example from the Middle and Far Eastern Carriers. Make the new airline the "Emirates of North America". Make our First Class and Business Class something to talk about.
On the new long-haul fleet make first class marvellous : lie flat seats, private booths and the best cuisine that we could offer (on flights to the UK serve traditional British Cuisine) and on the way back pull out the Roti, and Curry Chicken but with style and class...
On the 737s - no first class only Business and coach. Put the PTVs on both the 737s and the long-hauls - in all classes.
Think about a lounges. At POS get a nice "Admiral's Club" or something. Something swank and upbeat. Something to attract all groups. Take a look at the middle-eastern carriers - look at what they are offering.



And here is the reason - this new airline will be an Ambassador to the world. It will represent not only a nation but a reigon. It will represent the warmest and kindest people in the world but it has to live up to them and their standards. If done correctly it will be a crucial building block for their futures, and if done incorrectly then it will became a multi-national shame. This new airline could build Trinidad. Or it could crash and burn. With so much potential, lets hope that it will be successfull....

[ptbodale]

AA 1818. That's quite the analysis and overview of BWIA's situation. Good info and opinion.

[uy707]

Pro :
the exotic nicknames associated with Bee-Wee and al won't be valid anymore provided proposed Carribean Airlines won't live up some of BW's legacies !!!!
the name of the airline should have been changed decades ago when Trinitad and Tobago were granted independance in 1964 !
when neatly conducted the advent of a new flag carrier can bring its string of refreshing news.
Verdict
let's bet mistakes piled up by BW will have been learned and REMEMBERED.
Now some comments
- AF has no monopoly on the SXM-CDG route, Corsairfly is always ready to show the reverse anytime. Furthermore BW never served France in the past, so entering the market would come up with some tearsome and hurting process.
- to counter AF, Carribean could also offer an alternative through POS, but ....given the FWI market structure and mentality, ummhh I wish you would be successful, but
and on the other hand, at least during an initial stage, it could be wise to avoid head-on competition with aggressive Air Caraibes which runs two well oiled hubs at PTP and FDF while Cayenne-Rochambeau can be easely turned from a focus city to another hub.
- Watch what may come from CCS as Venezuela is setting up Conviasa, which I don't think to be a success. I would not forget to keep an eye on Aeropostal, can prove dangerous.
Alain

[AA 1818]

Pro :
the exotic nicknames associated with Bee-Wee and al won't be valid anymore provided proposed Carribean Airlines won't live up some of BW's legacies !!!!
the name of the airline should have been changed decades ago when Trinitad and Tobago were granted independance in 1964 !
when neatly conducted the advent of a new flag carrier can bring its string of refreshing news.

To be honest, the name "BWIA" was necessary until recently simply to maintain the connection to the past as well as a reminder of unity among commonwealth nations in the Caribbean in the form of an airline. Had the name of the airline been changed at that time - more than likely - it would have been changed to something that reflected the "Trinidad and Tobago" name which would have alienated the other main markets of BWIA. The BWIA brand has been really successfull in maintaining the idea that it is an airline to serve not only Trinidad and Tobago, but also Barbados, as well as St.Vincent and the Grenadines, as well as the other nations that simply could not support their own flag carrier. This attitude perservered until the recent c/s change when it was proposed that the aircraft be painted in a red/white/black c/s but was not done in the aims of not alienating other "key nations".
Apart from that, even though Trinidad and Tobago did receive independance from the U.K. in 1964 we did not become a republic for some time later, and even today we have very strong connection to the U.K. Whereas other countires gained their independance via violent means (or even gained Independance and maintained a level of resentment towards the controlling nation after independence), most of the Caribbean islands kept very cordiale relations with the U.K. and as of such there was no real push to create a major identity seperate from the U.K. at that time.

Verdict
let's bet mistakes piled up by BW will have been learned and REMEMBERED.
Now some comments
- AF has no monopoly on the SXM-CDG route, Corsairfly is always ready to show the reverse anytime. Furthermore BW never served France in the past, so entering the market would come up with some tearsome and hurting process.
- to counter AF, Carribean could also offer an alternative through POS, but ....given the FWI market structure and mentality, ummhh I wish you would be successful, but
and on the other hand, at least during an initial stage, it could be wise to avoid head-on competition with aggressive Air Caraibes which runs two well oiled hubs at PTP and FDF while Cayenne-Rochambeau can be easely turned from a focus city to another hub.
- Watch what may come from CCS as Venezuela is setting up Conviasa, which I don't think to be a success. I would not forget to keep an eye on Aeropostal, can prove dangerous.
Alain

And you are right, but here is how I see it. BWIA had begun to stagnate. With Caribbean, I am hoping to see them expand from the "all - safe" tactics that BWIA had been pursuing for so long. Markets like ATL, MCO and FLL have been money makers for others, but BWIA - ever afraid of competition , new launchings and new probabilities decided to ignore the possibilities. BWIA only accepts that competition that was thrust upon it (AA @ POS, CO @ POS, and soon DL @ POS). I want to see the new carrier at least trying to expand. Yes, as you have mentioned, the SXM-CDG route has 2 or 3 key players, but BWIA needs to consider making a market somewhere. I mean, it may be rough, but the new carrier needs to learn how to deal with it, and if they fail on that route, they need to learn how to do it well (minimize their risks and take chances but intelligently). BWIA started proposing some "weird routes" recently, and when you consider them (I believe that they were proposing South Africa and India), SXM may not seem to be such an "un-intelligent" proposal. To clarify - the only reason I wished that they could get involved in SXM, is because as a new market it would have been most probable to teach them the most - either how to flourish under competition (and think intelligently by marketing themself well and competitive pricing yet maintaining their level of style and class that I spoke of earlier) or how to fail well (by limiting their losses and learning how to deal with competition).

[TAP-A343]

The Fleet - We have had so many problems with the A340s. The leases are soo expensive and the planes are not the most efficent. This is the perfect way to do a change in the long-haul fleet. Maybe 777s? 772LRs would be perfect for BWIA. The 772 will provide the best fit for their capacity on those routes and the range would be great.

What problems have they had with the A343's?

On the other hand, if the A343's leases are expensive I'm sure they would be much higher for B772LR's. And would they need an ULR aircraft considering their present route network? Perhaps their best choices would be B787's or A350's to replace those A343's in the medium term.

The Routes

Brazil - make POS an attractive stop for Brazilians. I mean, things aren't going to well for Varig - so advertise another alternative.

I only see POS an attractive stop for Brazilians if they're heading to the Caribbean. For Europe and North America they have non-stop flights.

The Amenities - the new airline needs to worry about class. With BWIA there was a major problem - a lack of class an professionalism. Hell, there was a serious deficency. We need to worry about those things. For example, on the First Class product take a great example from the Middle and Far Eastern Carriers. Make the new airline the "Emirates of North America". Make our First Class and Business Class something to talk about.
On the new long-haul fleet make first class marvellous : lie flat seats, private booths and the best cuisine that we could offer (on flights to the UK serve traditional British Cuisine) and on the way back pull out the Roti, and Curry Chicken but with style and class...
On the 737s - no first class only Business and coach. Put the PTVs on both the 737s and the long-hauls - in all classes.
Think about a lounges. At POS get a nice "Admiral's Club" or something. Something swank and upbeat. Something to attract all groups. Take a look at the middle-eastern carriers - look at what they are offering.

That all sounds nice to me but is there demand for such products?

As far as I know, the Caribbean is mostly a leisure and ethnic destination, who would fly F?

Regards.

[uy707]

Looking back to some slides leads me to remember that for a while BWIA used to add subtitles reading "the airline of Trinitad and Tobago" right beside the main titles above the window line and side stripe. Have some 707s and a Tristar 500 showing up this way when pictured on taxi.
Alain

[Starjack]

Yea, it is really sad to see BWIA close down. I really like that airline. What's next for Trinidad & Tobago aviation industry?

[dbirju]

You do realise that BWIA closed down more than 3 years ago right?

[Starjack]

You do realise that BWIA closed down more than 3 years ago right?

Yes i know, but i really missed the airline because of the wide body aircrafts it operate in its historical fleet. Caribbean Airlines should have kept the two Airbus A340s before BWIA shut down, even if it wants to relaunch services to London.

[AA 1818]

Yes i know, but i really missed the airline because of the wide body aircrafts it operate in its historical fleet. Caribbean Airlines should have kept the two Airbus A340s before BWIA shut down, even if it wants to relaunch services to London.

The A340s did not disappear overnight. They were kept around for a few weeks to conclude services to the U.K. until both BWIA departed well and BA started services. True, the A340s were announced to leave the fleet and that Caribbean Airlines had little plans of keeping them.

As for keeping the A340s - it was simply not feesible because;

1). Their leases were about to expire, and further, they aircraft were leased at high rates.

2). BW's slots at LHR were already given to BA (as part of the arrangement for both airlines to cooperate on routes to the UK).

3). The most important - BW was unable (since the inception of the use of the A340s) to make the POS-BGI-LHR route profitable. Tried as they may have, the route, airline and aircraft simply did not combine into a winning formula for the route.

[Starjack]

The A340s did not disappear overnight. They were kept around for a few weeks to conclude services to the U.K. until both BWIA departed well and BA started services. True, the A340s were announced to leave the fleet and that Caribbean Airlines had little plans of keeping them.

As for keeping the A340s - it was simply not feesible because;

1). Their leases were about to expire, and further, they aircraft were leased at high rates.

2). BW's slots at LHR were already given to BA (as part of the arrangement for both airlines to cooperate on routes to the UK).

3). The most important - BW was unable (since the inception of the use of the A340s) to make the POS-BGI-LHR route profitable. Tried as they may have, the route, airline and aircraft simply did not combine into a winning formula for the route.

I hear you AA 1818. Well at least they expand their fleet with the dash 8s they get from Tobago Express and adding B737 aircrafts almost every year. And i did heard that they were adding a 9th B737 (9Y-TJR) for the Carnival 2K10.