BWIA attracts some British interest

Monday, November 24, 2003

LONDON, England: Two British airlines have shown some interest in buying a minority stake in BWIA International, one of the Caribbean's leading carriers that is close to being grounded by mounting losses, the Financial Times reports.

The Trinidad-based carrier has drawn indications of interest from British Airways and Virgin Atlantic, according to government and industry sources in Trinidad.

This follows suggestions that the government, a minority shareholder, could withdraw financial support for BWIA, which has lost $45 million this year and which is carrying debts of $100 million. The airline's liabilities exceeded its assets by more than $52 million at the end of last year.

"We will have to take some hard decisions about the airline," said Patrick Manning, Trinidad and Tobago's prime minister.

The administration has a 33 per cent stake in BWIA and holds another 15 per cent on behalf of employees. Institutional and individual investors hold the rest.

BWIA flies between several eastern Caribbean islands and cities in North America and Europe.

"The decisions that might be made could lead to an end to state financial assistance for the carrier," Mr Manning said. The government has given BWIA $30 million this year.

Mr Manning said at least one offer for BWIA had been made by a foreign carrier, which he did not name.

Virgin has indicated an interest in BWIA. Sir Richard Branson, Virgin's chairman, said the company was aware "BWIA has had difficulties". "We do not normally get involved in companies that are up and running. If the government asked us to invest in the Trinidad airline, we would talk to them," he added.

BA's interest is in backing local investors who want to buy BWIA, according to government and industry sources in Port of Spain, Trinidad's capital.

The government has not given confirmation but Ken Valley, the trade minister, said BA had indicated it wanted to purchase BWIA's slots at Heathrow airport. 

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