PORT OF SPAIN, Trinidad, CMC:
THE TRINIDAD and Tobago government yesterday announced the formation of a new regional airline, which it said would replace the financially-plagued national carrier, BWIA.
Prime Minister Patrick Manning told legislators that his administration had accepted the recommendations of a Cabinet-appointed Committee to examine the debt-ridden BWIA.
"We believe strongly that we are now in a position to complete a seamless transition from the existing BWIA to this new entity," Manning said.
He said this would involve "substantial investment of taxpayers dollars by the government and some major departures from the status quo".
"We will therefore proceed with a plan that would involve the re-capitalisation of approximately US$250 million to ensure that this new entity could manage its operations. The new entity would continue to be majority owned by the government with a plan for further divestment to the private sector," Manning said as he delivered the 2005-6 national budget to parliament.
