Caribbean Airlines Bankrupt?

[neilsingh100]

Not that I take any article in the mirror seriously but heard this from several CAL employees also.

Is it true, from Arthur Lok Jack the PP put a CEPEP contractor as chairman of CAL?

CAL flies into the red
Posted on March 29, 2013 by Roget
Over $500 million losses, despite subsidy


CAL Chairman
RABINDRA MOONAN

IT’S official! Caribbean Airlines (CAL) is bankrupt! Word reaching TnT Mirror is that the Board has gone cap-inhand to borrow money from the Government to the tune of over $100 million. The money will allow the penniless airline to pay its staff’ and suppliers.
Mirror learnt that CAL, which is chaired by CEPEP contractor Rabindra Moonan, is over $500 million in the red and the situation could be worse were it not for the massive annual fuel subsidy from the Government.This subsidy is said to amount to just under $300 million and is a bone of contention with St. Vincent Prime Minister Ralph Gonsalves who feels it gives the national airline unfair advantage over LIAT which is owned by several Caribbean governments.
The airline has not released its annual accounts for a number of years and in the past couple of years gobbled up a billion dollars left by the previous board.An industry source told Mirror: “The airline’s role in making possible intra-Caribbean travel for social and business purposes is critical and its absence would reduce the population of several small states to being virtual prisoners on their islands.
“However, the misdirection and mismanagement at CAL cannot go on. The Board and management have to be held accountable.Something needs to be done to put a competent and effective Board and management team in place to strategically manage the airline.”
Mirror was also asked to investigate claims that Board members were in the process of negotiating the purchase of an old aircraft from China. It is alleged that the deal has been placed on hold as questions were raised about the links between the China based
company and certain high-ranking CAL officials.CAL staff are now on high alert as there is talk of a major restructuring. Just last week, 15 flight attendant’s contracts at the Jamaica operation were not renewed. Clive Forbes, general manager of Caribbean Airlines in Jamaica, told Jamaica-based RJR News that the expiration of the contracts coincided with cost cutting measures at the airline.Mirror was told that the recently- appointed Chief Financial Officer Shiva Ramnarine has been looking carefully at the airline’s operations and how they could be streamlined to save money. It is alleged that CAL is also looking closely at the Jamaica operations which is said to be bleeding the company’s scarce resources.Mirror understands that CAL is considering closing a call centre in Jamaica, which employs around 90 people, as calls can be easily rerouted and handled in Trinidad. It is alleged that other aspects of the Jamaica operations are being reviewed to determine what can be shut down or downsized. The Jamaica Government, which has its own issues, is not likely to take kindly to this move.Concerned employees who contacted the Mirror lamented: “How has the airline reached to this state? Now we are hearing about restructuring. It is unfair because many of us work very hard to keep this airline flying. The persons responsible for having
us in this predicament are never the ones who are sent home when there is restructuring.” The employees continued: “Look at CAL’s track record. In just six years there have been several incidents, including the Guyana crash. Pilots with low flying hours are being hired and promoted. These things never happened in BWIA, which is why BWIA’s safety record remained intact to the end.”Since the unceremonious dismissal of Ian Brunton as Chief Executive Officer of CAL in November 2010, the airline has been led by an acting CEO. Many argue that the absence of a strategic leader coupled with a questionable Board of Directors has accelerated the demise of the airline. When the PP first came into power, CAL’s line ministry was shifted from the Ministry of Finance to the Ministry of Transport.After several public clashes between the then Minister Jack Warner and the Board, the airline was “returned” to the Ministry of Finance with the Minister of Finance as corporation sole. Mirror is once again calling on Finance Minister Larry Howai to explain to the taxpayers of Trinidad and Tobago the exact state of affairs at CAL. As the ones funding the bailout, taxpayers have a right to know.

[kurpal_v2]

Dooks did warn them yuhno....

[Street Racer 7]

really... the taxpayers will pay the bill

[pete]

Family members and staff still get free flights on CAL?

[pioneer]

Family members and staff still get free flights on CAL?

But of course, the ppg financiers fly first class for free also

They used to use air guard plane to go tobago but jack put a stop to it

So now they just use CAL to go tobago and shopping sprees in miami

[neilsingh100]

Apparently the chairman is related to Dookeran and is a part of the Moonan family that ran Summit Finance (i.e. Clico of the 1980's) so no surprise here with the ill fate of CAL.

[equipped2ripp]

Put the source to your article.

[rfari]

You know. Meem have an issue if you competent and eating ah food unno. Is these spoon-fed, duncey head unc/cop supporters/financiers that only seem to be able to manage and turn a profit from illicit activities that does rell bodda me.

[equipped2ripp]

^ while that is the truth, it was the truth for the past administration and it would be the truth for future administrations to come. That's the way Governments are run.

[rfari]

^ while that is the truth, it was the truth for the past administration and it would be the truth for future administrations to come. That's the way Governments are run.

Im not denying that at all but i had high expectations from this administration and it seems like it is taking nepotism as well as other negatives to a new high. New precedence is being set every month that will leave sufficient room for administrations to come to be on folly and be accepted by trinbagonians.

[joker]

nepotism is always prevalent in all parties.... . but concealing it is another thing... the the pnm mastered that in all their years in government .

[rfari]

nepotism is always prevalent in all parties.... . but concealing it is another thing... the the pnm mastered that in all their years in government .

Part of concealment is the ability to perform the duties at hand. Although PNM had its people selected to sit on state and statutory companies boards, these people appeared to be more competent (relatively speaking) then this regime's crop of spoon -fed.
In all fairness, the core of the issues stems from the public servants that work under the line ministers; permanent secretary right down to cleaner. Any administration that comes into power has an uphill task when dealing with the public service.

[civic minded]

Don't you all realized that everything the PP has done has ended in disaster?

[Hirotoshi]

apart from the incompetence of the injun style family,friends & party hacks ,caribbean airlines should never have purchased air jamica.

[zoom rader]

TNT Mirror = PNM propaganda newspaper

[cacasplat3]

this is the best time to sell the damn airline....they keep pumping millions into it, but yet it manage to buy air jamaica.....how the hell that possible?
honestly CAL is crap, the most important thing about CAL (the actual planes) are not inviting and are a poor representation of our country and economy.......BA or some other leading airline should buy it out and that should be the end of that money sucking beyotch......

[pioneer]

At least PNM used to put people who had past experience in their field.

Who on any state boards know anything about governance?

[Habit7]

TNT Mirror = PNM propaganda newspaper

Why stop there, do like our PM and claim that all media is against her

caribbean airlines should never have purchased air jamica.

PP said that on the election platform prior to May 24 2010 but later the economic "genius" the COP supporters called Dookeran said it was good. However choices such as cash purchases of the ATRs, the leasing of the 767's and the premature restart of the London route along with many money wasting decisions they make, are reversing the surplus they met when they took over.

[pioneer]

Well how else would the children of ministers get to london for free?

BA would have none of it.

[pioneer]

Something I always wanted to ask all these elite politicians and their counterparts, prior to coming into power how did they pay for stuff?...like gas...air travel...vehicles etc?

Why do they assume it should be free now?....aren't they rich and elite?...they should be able to pay for their own chit.

[zoom rader]

this is the best time to sell the damn airline....they keep pumping millions into it, but yet it manage to buy air jamaica.....how the hell that possible?
honestly CAL is crap, the most important thing about CAL (the actual planes) are not inviting and are a poor representation of our country and economy.......BA or some other leading airline should buy it out and that should be the end of that money sucking beyotch......

Ever since CAL started their london route i changed ship from BA and Virgin . I dont know how many times you fly, but i fly 11-13 times a yr to london. I dont know what measure you used to state that CAL is crap but its far from the truth. Their london service is up to date and way much cheaper that British Airways. With CAL you are allowed two free bags while BA you are only allowed 1 free bag. With BA you have to pay to get the best seats, with CAL you pick your seat free at the time of booking. Ever since CAL came back on the london route the prices have remained cheaper, Brit Airways was taking avantage of this before.
The PNM made a huge mess of selling the BWIA spot at Heathrow and buying Air Jam. For years BWIA under PNM had massive looses. It was the PNM that created CAL with the detriment of the BWIA workers , now PP has to pick up and sort out this PNM mess.

[pioneer]

...with incompetent people.

[zoom rader]

...with incompetent people.

You expect a business tobe save overnight from PNM miss dealings?

[Rory Phoulorie]

...with incompetent people.

You expect a business tobe save overnight from PNM miss dealings?

With the amount of shit that the PPG is doing, it will take us generations to recover.

[singhj]

Lol @ these morons trying to run, farless turn a profit with a multi-million dollar airline in such a competitive industry without experienced/qualified management and employees. If it wasn't for the fuel subsidy and government CAL would have been bankrupt long time

[pioneer]

...with incompetent people.

You expect a business tobe save overnight from PNM miss dealings?

So this "is pnm fault" still valid in 2013?

[pioneer]

Sell the damn airline, just like RBC fire all the damn incompetent greedy oligarchs.

I won't be surprised if the airline was being used to move cocaine into the UK.

I also won't be surprised if I go missing after posting that.

[tourniquet]

sooo if:
PNM- supposedly qualified people= doing sheit
PP- supposedly unqualified people= doing sheit
....basically we're screwed either way?

[zoom rader]

...with incompetent people.

You expect a business tobe save overnight from PNM miss dealings?

With the amount of shit that the PPG is doing, it will take us generations to recover.

Yes it may generations to recover. In trinidad there is lazy work force that expect everything for free. Part of trini problems is the work force, we have too many lazy Government workers. Lazy workers have been programed by the PNM for years and given free jobs for the boys. It will a generation to get rid of them. Trini is not a service country, we have too many rude people in the wrong jobs and this adds as a major problem of we do business.

[zoom rader]

Sell the damn airline, just like RBC fire all the damn incompetent greedy oligarchs.

I won't be surprised if the airline was being used to move cocaine into the UK.

I also won't be surprised if I go missing after posting that.

Have you forgotten the diplomatic pouch under the PNM?