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BWIA looks for massive savings

Tuesday, 27 August 20023 min read

Cash-strapped BWIA is trying to save $1 million in an attempt to reduce its debt.

The airline, formerly British West Indian Airlines, is also asking employees to voluntarily agree to an undisclosed round of wage reductions to help achieve that goal.

BWIA’s restructuring plans also include a review of fleet utilisation and computer reservations charges. So far it has not changed its commission structure, which currently stands at 6% for US agents and 7% for Canadian agents.

The problems at BWIA follow financial difficulties at several US airlines. Already US Airways and United Airlines have announced plans to file for Chapter 11 bankruptcy and American Airlines is to shed thousands of jobs.

Meanwhile, Northwest Airlines has raised its surcharge for paper tickets from $10 to $25 to raise extra cash. The fee applies wherever e-tickets are available.