Employees get pay bonus
as..
BWIA declares a profit
BWIA International has finally broken the scourge of losses for the last 57 years, by making a profit of US$230,000 (TT$1.5 million) for the first six months of 1998. And so pleased was the management with its successes that it gave almost all of it away to employees at a rally in November.
Chief Executive, Conrad Aleong confirmed that each employee took home US$100 from the record-earnings which he viewed as dividends for dedicated service to the cash-strapped airline. He estimates that by the end of the year, BWIA would have declared a profit of US$3.2 million.
He said the employees did "a super job" throughout the
summer this year, with "excellent on-time performances."
As a result, the company was blessed with a load factor of 85
percent from July to mid-September, blowing away estimates that
by August the load would start declining.
By November the load factor had been reduced to 60 percent, "and
this is still a very high level," insists Aleong.
"We had a record in terms of revenues and profits,"
he said, "and if we're going to make this US$200,000 profit
this year, why not give it to the employees first, because they
are the ones who had put up with all of the hardships over the
years, and have kept the airline going in spite of all the management
and shareholders changes.
"In comparison to last year, our poor service costs were
reduced by 60 percent from US$761,000 to $203,000 in 1998. The
airline also achieved its best on-time performance since 1995.
almost 80 percent of the flights were on-time as compared with
71 percent, 45 percent and 67 percent for the three years up to
1997.
He said BWIA intents to raise US$50 million on the international
capital markets early in 1999 to finance fleet renewal and expansion,
improve customer service and purchase new technology.
Industry analysts believe however, that it is too soon to predict
clear skies for the airline as its trek to viability has only
just started. This latest news will certainly be a boost for employees
as well as loyal passengers who have stood by the airline despite
its disastrous performance and poor service over the years.
BWIA turned a new leaf last year with the appointment of insurance
magnate and real estate developer Lawrence Duprey as Chairman.
Last year's losses were only US$18 compared with $27 million in
1996.
Strategy
A part of the turnaround plan, BWIA is pursuing an alliance
with Inter-Continental airlines to connect flights out of Houston,
and expand its access to the US market. An agreement is expected
by January.
Aleong said yesterday that the airline has no intentions of laying-off
staff and he expects to increase the fleet from the current nine
planes to 13 in the next few years.
Despite Aleong's reassurances, there is still some friction between
management and staff. He declined reporters requests for comment
on the recent protest action by flight attendants who opposed
a policy decision by their manager, Joy Ramsawack.
Aleong told reporters that was a private BWIA matter and there
were a few differences of opinions which will be dealt with with
dialog.
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