News

T&T Govt fires Caribbean Airlines directors

Jamaica’s Dennis Lalor appointed to new board

Friday, May 17, 2013 | 12:33 PM    

Print this page Email A Friend!


PORT OF SPAIN, Trinidad (CMC) - Less than 72 hours after he announced that Caribbean Airlines (CAL) had accumulated losses of more than US$100 million, Trinidad Finance Minister Larry Howai Friday said that the current board of directors of the state-owned airline has been replaced.

Howai told a news conference that the new interim board will be chaired by former independent legislator Phillip Marshall and includes the Jamaican Dennis Lalor.

Howai told reporters that the new board would have to outline measures to turn around the fortunes of the airline that accumulated losses of US$110 million including a US$40 million in government subsidies.

On Tuesday, Howai told the Senate that the preliminary unaudited figures showed US$32 million of the $70 million loss was incurred by the Air Jamaica route, with the London route also accounting for a major part of the losses.

Caribbean Airlines, which began operations in 2007, acquired Air Jamaica in 2011. The Jamaican Government has a 16 per cent stake in the Trinidadian air carrier.

“On the Jamaica route, it has cut flights to Jamaica and on the London route, it has terminated the wet-leasing arrangement,” Howai said, adding he expects to “significantly reduce the losses of the airline during this year”.

The finance minister said the airline used a lot of its cash in the acquisition of planes and that he had instructed that a new restructuring of the balance sheet be done where the airline would have to borrow and replace the cash which had previously been used.

“It is better to leverage the asset rather than leave it unencumbered while having the company incurring significant debt obligations.”

Howai said the US$40 million fuel subsidy applies to Air Jamaica and CAL. He said it was the same as last year and would end in 2015.

ADVERTISEMENT

POST A COMMENT

HOUSE RULES

 

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper – email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT
ADVERTISEMENT

Poll

Have you seen an improvement in the Government’s handling of the chik-V outbreak?
Yes
No


View Results »


ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT