Letter from Caribbean Airlines CEO
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Letter from Caribbean Airlines CEO
I wish to take issue with certain suggestions made in a letter on October 22 by Desmond Roban, titled “Take hard decisions on airline industry, trade.” Roban makes numerous statements on the finances of Carib-bean Airlines Ltd (CAL), and provides suggestions which compel me to provide your readers with the facts. The first statement made by Roban is that Caribbean Airlines “has not demonstrated the capacity to break even.” He also states that CAL, “ever since its inception in September 2006, receives $250 million annually from the treasury just to stay afloat, and it still has not submitted a profit and loss account.” As dictated by the laws of T&T, as a state entity, CAL must submit annual audited financial statements to the Government. CAL has not shirked from this responsibility.
To date, the airline has provided its audited accounts to the Government for fiscal years 2007 and 2008. In 2007, the first operating year of the airline, expectations were exceeded, and though an operating loss was recorded, this was mainly due to restructuring and transition costs incurred. In 2008, we were able to declare a small net profit despite the fact that the entire airline industry was going through one of its worst economic downturns ever. The financial results for 2009 have been reviewed by our external auditors and are in its final stages before signing off by the company’s board of directors. These results will show that the airline has made a profit for its second consecutive year and the results for 2010 will be even better.
Since its inception, CAL has not had to approach the Government for any subventions to meet the cost of its operations. In his letter Roban accuses the airline of intending to purchase 15 Boeing 737-800 aircraft. This is not true. Our jet aircraft are all on short to medium-term leases.
As has been widely reported in the media, we have signed a deal with ATR for the purchase of nine of its ATR 72-600 aircraft. These will be replacing our present turboprop aircraft from October 2011. CAL will not be requesting government funding for this purchase. It is well known in Caribbean aviation that airlift is critical for the economic survival of the region. We cannot rely on foreign carriers to stay the course in the worst of times. CAL is working steadily to provide reliable, affordable airlift to the region’s citizens, whilst simultaneously running a profitable operation that is the pride of the Caribbean. I speak for the entire management team at Caribbean Airlines when I say that CAL has been methodical and has followed good corporate governance when it comes to its financial reporting and accountability. We have created a competitive airline with an extremely attractive product offering which focuses on excellent customer service and performance. CAL has had outstanding success from its birth just over three years ago and I, for one, am very saddened by the destructive implications made in the letter.
On another note. Have the Jamaican pilots signed the contract offered to them by CAL for the 737?
Two 737s on dry lease coming soon from TRANSAVIA. 9Y-TJR, 9Y-TJS.
Alot of training going on on Dash-8 and 737.
11 new training captains appointed.
12 new-hire first officers on Dash-8.
New 4 day rotation for POS crews. Start off in POS, first night in KIN, second night in YYZ, third night in KIN, then back to POS.
To date, the airline has provided its audited accounts to the Government for fiscal years 2007 and 2008. In 2007, the first operating year of the airline, expectations were exceeded, and though an operating loss was recorded, this was mainly due to restructuring and transition costs incurred. In 2008, we were able to declare a small net profit despite the fact that the entire airline industry was going through one of its worst economic downturns ever. The financial results for 2009 have been reviewed by our external auditors and are in its final stages before signing off by the company’s board of directors. These results will show that the airline has made a profit for its second consecutive year and the results for 2010 will be even better.Since its inception, CAL has not had to approach the Government for any subventions to meet the cost of its operations. In his letter Roban accuses the airline of intending to purchase 15 Boeing 737-800 aircraft. This is not true. Our jet aircraft are all on short to medium-term leases.
As has been widely reported in the media, we have signed a deal with ATR for the purchase of nine of its ATR 72-600 aircraft. These will be replacing our present turboprop aircraft from October 2011. CAL will not be requesting government funding for this purchase. It is well known in Caribbean aviation that airlift is critical for the economic survival of the region. We cannot rely on foreign carriers to stay the course in the worst of times. CAL is working steadily to provide reliable, affordable airlift to the region’s citizens, whilst simultaneously running a profitable operation that is the pride of the Caribbean. I speak for the entire management team at Caribbean Airlines when I say that CAL has been methodical and has followed good corporate governance when it comes to its financial reporting and accountability. We have created a competitive airline with an extremely attractive product offering which focuses on excellent customer service and performance. CAL has had outstanding success from its birth just over three years ago and I, for one, am very saddened by the destructive implications made in the letter.
On another note. Have the Jamaican pilots signed the contract offered to them by CAL for the 737?
Two 737s on dry lease coming soon from TRANSAVIA. 9Y-TJR, 9Y-TJS.
Alot of training going on on Dash-8 and 737.
11 new training captains appointed.
12 new-hire first officers on Dash-8.
New 4 day rotation for POS crews. Start off in POS, first night in KIN, second night in YYZ, third night in KIN, then back to POS.
