BWIA is seeking US $40 million (TT $245 million) from government to pay off workers (severance pay) of the cash-strapped national carrier.

Sources say that the airline is offering more than 2,000 employees voluntary separation of employment (VSEP) packages.

One source said after the workers are paid off, BWIA will re-hire the majority of them on contract.

“The contract plan is going to cost the airline more money,” one senior official said.

This is seen as a move to get rid of the five unions which is representing BWIA employees.

The unions are being blamed for the ongoing industrial unrest in the national airline, which can cost BWIA up to some US $15 million (TT $125 million) after the issues are settled.

The union is demanding a 50 per cent increase for its workers in the current negotiations to keep in line of what the airline has offered BWIA pilots.

BWIA is bracing itself for a mass exodus of engineers and mechanics over to Caribbean Star and Caribbean Sun airlines.

Sources say the Antigua-based airline, owned by Texan billionaire Allan Stanford, is looking to hire some 60 engineers and mechanics for its expansion plans in Trinidad from next month.

The airline is moving to set up a crew base at Piarco International Airport and will start new daily flights between Trinidad and Antigua and Trinidad and Guyana next month.

Caribbean Star and Caribbean Sun is the largest regional airline with the most modern aircraft fleet.

The airline plans to hire the majority of workers from Trinidad, including pilots, flight attendants, engineers and mechanics.

The engineers and mechanics say that if they are offered a 50 per cent increase like BWIA pilots, they would reconsider taking up the lucrative packages being offered by Caribbean Star.