Caribbean airline merger
Thread Starter
Whatever happens,.. happens!
Joined: Apr 2000
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From: 19' N, 82' W
Caribbean airline merger
I read with interest that serious negotiations are taking place to merge BWIA and LIAT.
Maybe that's just the beginning of what (IMHO) should have started a long time ago and include the entire Caribbean basin.
a lot of comments on the www.caribbeanalpa.com website
my apologies, I meant to submit the above post to the Caribbean regional forum.
Maybe that's just the beginning of what (IMHO) should have started a long time ago and include the entire Caribbean basin.
a lot of comments on the www.caribbeanalpa.com website
my apologies, I meant to submit the above post to the Caribbean regional forum.
Joined: Aug 2002
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From: Cayman Islands
It's funny you accidentally submitted your post in this forum. It's something we've had some personal experience with. Let me first say that I agree totally with your opinion that this should have started a long time ago and most certainly include the entire Caribbean basin.
Several years ago we spent a considerable amount of time doing due diligence on a project on one of the Bahamian family islands. During that timeframe we had numerous meetings with the then PM and his DPM who seemed to have more interest in our professional backgrounds then our proposed real estate development. Eventually they broached the subject of BahamasAir and it's ongoing loses and rather large growing debt.
We had actually already given some thought to this matter and included a provision in our "Heads of Agreement" with the Government that we would have the option to operate our own airline to ensure sufficient uplift to our proposed Comunity Destaination Resort.
Anyway to make a long story short we suggested that they give serious consideration to spearheading a movement within the Caribbean to form one major airline. We felt strongly the range of synergies would be extensive but unfortunately the political will to try something new was just not there at that time.
We still think it's a good idea and with the current economic realities for airlines it likely stands a much better chance of coming to fruition now then ever.
It will be very interesting as you say to watch the events unfold.........
Several years ago we spent a considerable amount of time doing due diligence on a project on one of the Bahamian family islands. During that timeframe we had numerous meetings with the then PM and his DPM who seemed to have more interest in our professional backgrounds then our proposed real estate development. Eventually they broached the subject of BahamasAir and it's ongoing loses and rather large growing debt.
We had actually already given some thought to this matter and included a provision in our "Heads of Agreement" with the Government that we would have the option to operate our own airline to ensure sufficient uplift to our proposed Comunity Destaination Resort.
Anyway to make a long story short we suggested that they give serious consideration to spearheading a movement within the Caribbean to form one major airline. We felt strongly the range of synergies would be extensive but unfortunately the political will to try something new was just not there at that time.
We still think it's a good idea and with the current economic realities for airlines it likely stands a much better chance of coming to fruition now then ever.
It will be very interesting as you say to watch the events unfold.........
Thread Starter
Whatever happens,.. happens!
Joined: Apr 2000
Posts: 360
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From: 19' N, 82' W
T&T PM e-mail
Sorry, I don't have that address,
try an e-mail message to: suntan <[email protected]>
he might be able to help.
Fluf
try an e-mail message to: suntan <[email protected]>
he might be able to help.
Fluf
Joined: Aug 2002
Posts: 61
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From: Cayman Islands
Thanks fluf I'll try it. I also found this excerpt from a newspaper article rather interesting:
"The Jamaican government announced last week Wednesday that it will assume a US$300 million debt incurred by Air Jamaica in exchange for an additional 20 percent interest in the carrier. Add to that a number of convertible preference shares which the Patterson administration currently holds in the airline, and the result is a new owner. Actually more like a return to the old owner since the government had privatized the carrier nine years ago".
Things are continuing to unfold.........
"The Jamaican government announced last week Wednesday that it will assume a US$300 million debt incurred by Air Jamaica in exchange for an additional 20 percent interest in the carrier. Add to that a number of convertible preference shares which the Patterson administration currently holds in the airline, and the result is a new owner. Actually more like a return to the old owner since the government had privatized the carrier nine years ago".
Things are continuing to unfold.........
Thread Starter
Whatever happens,.. happens!
Joined: Apr 2000
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From: 19' N, 82' W
Interesting article on the same topic in last weeks" Flight International" issue.
The " big fish in smal pond" mentality is a big stumbling block in making caribbean aviation a regional force that would control air service to and from the region.
If such an entity did exist, it could negotiate agreements that would provide opportunities for the transport of peoples and goods that could bring considerable economic benefits to the regions industries and inhabitants.
But, there i go, fantasizing again.
The " big fish in smal pond" mentality is a big stumbling block in making caribbean aviation a regional force that would control air service to and from the region.
If such an entity did exist, it could negotiate agreements that would provide opportunities for the transport of peoples and goods that could bring considerable economic benefits to the regions industries and inhabitants.
But, there i go, fantasizing again.
Joined: Aug 2002
Posts: 61
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From: Cayman Islands
I don't think your alone fantasizing about that scenerio as it simply makes too much sense. With our minimal involvement we just got the feeling nobody wanted to take that first step.
Perhaps current and future economics will take there toll and the options will become limited enough that realities will be the motivating factor.
I think a well thought out business plan and a meeting of the biggest players would invoke some serious thought but I like you are probably just fantasizing again.
PS How are you at writing business plans.
Perhaps current and future economics will take there toll and the options will become limited enough that realities will be the motivating factor.
I think a well thought out business plan and a meeting of the biggest players would invoke some serious thought but I like you are probably just fantasizing again.
PS How are you at writing business plans.
Thread Starter
Whatever happens,.. happens!
Joined: Apr 2000
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From: 19' N, 82' W
looks like its going to happen for BWIA and LIAT.
lots of insiders in the region still have a difficult time to get their head around the idea.
not all change is progress, but all progress requires change!
lots of insiders in the region still have a difficult time to get their head around the idea.
not all change is progress, but all progress requires change!
Thread Starter
Whatever happens,.. happens!
Joined: Apr 2000
Posts: 360
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From: 19' N, 82' W
thanks for the "welcome back',
I've had a rather frantic few months,
several of the " Irons" that I have in the fire, seemed to reach melting point at the same time and needed attention.
Thankfully "things" are slowing down a bit and i might actually find some time to pursue leisure activities in the near future.
I've had a rather frantic few months,
several of the " Irons" that I have in the fire, seemed to reach melting point at the same time and needed attention.
Thankfully "things" are slowing down a bit and i might actually find some time to pursue leisure activities in the near future.
Joined: Oct 2002
Posts: 66
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From: Cayman Islands
Glad to hear the fires are out....as the purveyer of much sage advice on this forum I'm sure you're very coginzant of the importance of balancing work and play.
In other words you gotta find that time for those all important leisure activities.
In other words you gotta find that time for those all important leisure activities.
Joined: Oct 2002
Posts: 66
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From: Cayman Islands
74 you may find this article interesting 
BWIA and LIAT will operate under one company
January, 2004 has been set as the target date for the start-up of the proposed single regional airline involving the Trinidad and Tobago carrier, BWIA, and the regional island-hopping airline, Leeward Islands Air Transport (LIAT).
The new entity is being established under a new holding company, Caribbean International Airlines (Holding) Ltd., (CIA Holding Ltd.), which registered earlier this month in Trinidad and Tobago. A merger between BWIA and LIAT is not the proposition being considered but rather the start up of a new carrier, which it is hoped will incorporate both BWIA and LIAT and possibly other Caribbean carriers.
Both carriers will retain their own separate operating status each with their own Airline Operator Certificate (A.O.C.). The holding company will enable the airlines to share functions such as finance and Information Technology to reduce operating costs, CMC reported.
BWIA and LIAT will operate under one company
January, 2004 has been set as the target date for the start-up of the proposed single regional airline involving the Trinidad and Tobago carrier, BWIA, and the regional island-hopping airline, Leeward Islands Air Transport (LIAT).
The new entity is being established under a new holding company, Caribbean International Airlines (Holding) Ltd., (CIA Holding Ltd.), which registered earlier this month in Trinidad and Tobago. A merger between BWIA and LIAT is not the proposition being considered but rather the start up of a new carrier, which it is hoped will incorporate both BWIA and LIAT and possibly other Caribbean carriers.
Both carriers will retain their own separate operating status each with their own Airline Operator Certificate (A.O.C.). The holding company will enable the airlines to share functions such as finance and Information Technology to reduce operating costs, CMC reported.
