BWIA in trouble!

Yeah cheers for that m8! Thanks

The old livery is Nostalgic, but the new one is better yes!

Rob.c:

History: Formed on 1 January 1980 from the merger of BWIA International (British West Indian Airways) and Trinidad and Tobago Air Services, both owned by the government. The former’s history went back to 1937 when founded by Lowell Yerex, creator of the once powerful TACA airline sysem in Central America, while TTAS was set up in June 1974 to operate the ‘airbridge’ between Piarco Airport, Trinidad and Crown Point Airport, Tobago. Full name of new company Trinidad and Tobago (BWIA International) Airways Corperation. Combined fleet comprised of six Boeing 707-320C’s, four McDonnell Douglas DC-9-51’s, and six Hawker Siddeley 748 turboprops. Fleet quickly modernised with the first two Lockheed Tristars, delivered in January and August 1980, with two more following in 1981 and 1982. Local route network supplemented with scheduled flights to Miami, New York, Toronto and across the Atlantic to London-Heathrow. Five McDonnell Douglas MD-83s acquired between 1986 and 1989, with the first aircraft in service on Miami route on 14 May 1986. Partial Privitisation completed in Febuary 1995, and listed on the stock exchange in December 2000. A new image and the present name adopted in early 2000. Mainline fleet expanded with six Boeing 737-800s during same year.

BWIA today: Flag Carrier of Trinidad and Tobago, linking Port of Spain with Seventeen destinations throughout the Caribbean and North America, across the Atlantic with London. In addition to the London route, other principal services are those to Toronto, New York, Miami, Washington and Atlanta. Caribbean islands served include Anguilla, Antigua, Barbados, Dominica, Grenada, Jamaica, St Kitts & Nevis, St Lucia, St Maarten, St Vincent, Trinidad and Tobago.

Hope this helps you Rob. 🙂

How long has BWIA been around i mean when was it formed?

Thanks Adrian. I just changed it last night in lieu of this news. I guess you could say, I’m paying homage to them, as they are one of UA’s non-alliance partners. Their old scheme isn’t bad, but their new one is much better very colourful, and unique, not un-like Air Jamaica. I like that green, especially!

If you dont like it you have to at least admit its better than the old one…

Flashy , I like it !

Havent flown with them, but ive been out on an apron in St.Lucia with one of their a/c stting right there, and i too like the c/s!

Great c/s!!

Originally posted by EGNM
good news – at least it’s not another airline (and great liv) to disappear from our skies!

yup

good news – at least it’s not another airline (and great liv) to disappear from our skies!

Nice avatar Greekdude 😉 Only just realised it was the steelpan.

It seems as if BWIA have been saved. The government had talks with ILFC and they have agreed to release their aircraft and give them until September to generate revenue over the summer period. It seems as if the government will takeover BWIA fully and inject cash into the airline.

Well BWIA has got 120 more days to sort out everything now!

Originally posted by Saab 2000
After 9/11 they went after a new fleet renewal ignoring what was happening in the world of aviation. Things were actually looking alright for them after 9/11 and they were not hit as hard as other airlines, but the aquisition of new aircraft plus the delays involved hit them hard.
Ambitious expansion plans seem to be at the heart of the airlines problems. In truth the MD-83s and Tristars should of been kept rather than operating 1 expensive A340 and a couple of 737s, which would of saved a lot of money and based on predictions could of helped them survive the turmoil the aviation industry was in.

to add my twopence into the equation, does it just seem to me that BWIA have been having severe probs with the A340s recently with several european opertors flying on there behalf – Martinair B763s and an Air Atlantic Trisatr springing intially to mind – could this point problems with the A340s – a cheaper option in to use Ad-hoc flights?

That’s too bad if they go under. Their colour scheme is easily in my top 5. Good thing I didn’t use my UA mileage to fly them to SXM, as I was contemplating doing so, but they didn’t have any convenient connections. I opted for USAirways instead.

But BWIA would have found it diffiicult to obtain finance at a good rate of interest. Airlines are seen as “risky” by lenders and typically have to pay a lot of interest.

Here’s a job for anyone keen enough to try it – track airline share prices to interest rates and you’ll find a loose negative correlation.

Besides, I think BWIA were always pretty highly geared (leveraged for our US members!) anyway – increasing that in the current environment would have been stupid.

The airlines WACC (wieghted average cost of capital) would have increased at a time when revenues were uncertain, and to accept that purely on the back of low leasing costs would not have been logical.

Yes, but even if the prices of financing the new aircraft were high, the over-all package would favour the airline.

The leasing prices may of dropped but still the costs of financing the new aircraft were high. The renewal was a costly business and with the condition the market was in, the output of capital was still a hell of a lot. The MDs and Tristars might of been costing a great amount of money but the costs involved would of probably outweighed the risks and costs of leasing new aircraft.

Yes, i think they didnt read the times right. First of all there fleet expansion after 9/11 was not a bad moov since leasing prices dropped drasticaly, plus those ageing Tristars and MDs were not saving them much cash anyway.

Your suggestion of using 1 A340 makes alot of sense, probably use the Tristar and A340 together and strangthen there long-haul position firm before gettying rid of the Tristar and getting more A340s from Air Canada.

In my opinion they did not realise the seriousness of the aviation industries crises, and continued there expansion plans in full throttle. They should have seen carefuly the situation in USA, that might have made them see the future a little more correctly.

After 9/11 they went after a new fleet renewal ignoring what was happening in the world of aviation. Things were actually looking alright for them after 9/11 and they were not hit as hard as other airlines, but the aquisition of new aircraft plus the delays involved hit them hard.
Ambitious expansion plans seem to be at the heart of the airlines problems. In truth the MD-83s and Tristars should of been kept rather than operating 1 expensive A340 and a couple of 737s, which would of saved a lot of money and based on predictions could of helped them survive the turmoil the aviation industry was in.

Agreed with there Saab, its not the first time an airline has perished due to over-ambitious management.

They are always close to being grounded though this seems quite serious. Looks like poor management. Trying to make the airline something it cannot be at the moment in the current market, new long haul and short haul services that are just not needed. Another good case of slim down or die.

Only further government assistance will help them survive, hopefully they can rescue them.