tntnews.net
Go Back Send us your Feedback Browse our Archives Friday Mirror Headlines
  Sunday Mirror Headlines

 

More ‘wild spending’ by cash-strapped airline
$125m to paint over BWIA planes

By AZAD ALI
CASH-STRAPPED BWIA West Indies Airways Ltd. is spend-ing a whopping US $20 million (TT $125 million) to change the colours of its aircraft fleet.

According to reports, BWIA signed a branding campaign in London recently, which included marketing of the national airline and a name change.

BWIA plane

The report dated June 9, 2006 and headlined “BWIA signs branding campaign,” stated: “The Trinidad and Tobago flag carrier, BWIA, is launching a US$20 million branding campaign.”

The airline has appointed the British marketing firm of Cagney to handle the project, which will develop the airline’s brand around the world.

Cagney is a holding company formed by Paul Simmons, the former chief executive and chairman of Oglivy & Mather.

The company is now planning BWIA’s first major UK promotional campaign.

BWIA currently operates seven European flights.

The article stated that Chick Smith Trott will handle advertising, while brand strategy will be run by Brandaid.

It is not known what the new colours of the eight Boeing 737 and two Airbus A-340 would be.

Sources say that the branding of BWIA appears to be part of the business plan that was developed to restructure the troubled carrier.

The airline was supposed to change its name to BWIA Caribbean Airways but that has not materialised.

One airline source said that when new Chief Executive Officer (CEO) Peter Davies took over recently, he presented a three-month operational plan.

A BWIA official said the unions representing BWIA employees have not been able to see a full business plan that was submitted to the Cabinet-appointed Arthur Lok Jack restructuring committee.

Since last year, under former CEO Nelson Tom Yew, the government has pumped some US $120 million into BWIA to keep the airline in the skies.

When new CEO Davies took over, government again handed over more money. Now Davies is reportedly asking for an additional US $33 million for current operations.

Union officials are accusing Davies of embarking on “wild spending” at a tremendous cost to the government, which involves re-branding, advertisement, salary to both local and foreign workers (with expertise), advisers, leasing aircraft, hotel accommodation for passengers (due to industrial action by some if its employees) in local and foreign hotels and increased pay for pilots.

The airline has reportedly hired some 12 expatriates to take charge of the airline’s operations in a bid to turn around the fortunes of the carrier.

In March, government announced it would pump in US $250 million (TT $1.5 billion) to help the airline remain financially viable until transition.

BWIA’s Corporate Communications Manager Dionne Ligoure said she could not confirm the report about a BWIA US $20 million branding and marketing deal being signed in London.

___________________________________________________________________________________
Archives | Feedback | Friday Mirror Home | Sunday Mirror Home | Go Back
© 2001 TnTMirror.com