Will BWIA Shutdown Affect World Cup?

BWIA has run out of lives.

The cash-strapped airline, which is among a group of carriers picked to ferry teams, media, sponsors and VIPs during the 2007 World Cup, today announced that it will shut down operations and lay off the bulk of its staff.

In a statement issued September 8, the Trinidad & Tobago government said it plans to create a brand-new airline called Caribbean Airlines that will be based in the twin-island republic. The T&T government owns a 97% stake in BWIA. The plan is to have BWIA continue uninterrupted service during the transition to the new airline.

All tickets already purchased for travel on BWIA will be honoured by Caribbean Airlines and BWEE Frequent Flyer air miles and Club BWEE memberships will transfer and qualify on the new airline, the government said.

Representatives of BWIA are holding discussions with trade union officials regarding the future of the workforce. "Current eligible BWIA employees will be offered separation packages and will be given the opportunity to apply for positions with Caribbean Airlines," the statement said. "The new packages will be competitive within the current airline market. BWIA will also assist employees with outplacement services to secure new opportunities," it added.

The BWIA shutdown is sure to attract the attention of World Cup 2007 cricket officials, coming less than two months after the airline was part of a group that won a lucrative contract to run chartered airlift of tournament officials.

A source said it is likely that the Caribbean Airlines will replace BWIA in the consortium but the fallout could still have some negative ramifications if the new, slimmed down airline can't fill the breach adequately.