Plans to restructure are afoot
BASSETERRE, St. Kitts - DESPITE the reopening of borders to intra-regional travel, Caribbean Airlines (CAL) out of Trinidad and Tobago has recorded a US$25.7M loss on its books for the first quarter of 2021.
The airlines, which is heavily subsidised by the Government and people of Trinidad and Tobago, reported its unaudited first-quarter results today (June 21), which pointed to a TT$172.7M loss due to, among other things, the shock to air travel.
In reporting the figures, CAL Chief Executive Officer, Garvin Medera explained that the COVID-19 pandemic, which has impacted all aspects of lives, has caused “an unprecedented shock to air travel, resulting in border closures and reduced travel demand, as the world grappled to deal with the virus”.
Those COVID-19-factors had impacted the airlines’ operations over the last year, having a damning impact “resulting in losses of over TT$172.7m (US$25.7m) for the first quarter of 2021”.
But despite the challenges during the last 12 months, the airlines was still offering services on many routes and provided repatriation flights for Caribbean citizens.
“Our cargo operations diversified as we offered charter services and expanded into new markets.
“We made major changes that substantially reduced our costs and kept the airline operational, but the situation now requires us to take further steps to ensure that Caribbean Airlines has a sustainable model for 2021 and beyond. This strategic restructure will focus on significant cost reductions in all areas of our operations, specifically our people, our fleet and other assets, and our route network,” the CEO said in a media statement.
Among the measures that the airlines has determined is the restructuring of its business model to meet the slowdown and low demand for air travel at this time.
In order to do so, the airlines has chosen to reduce its operations, human resource personnel, its fleet and its network.
Most importantly, the airlines has decided to reduce its staff complement by 25% or approximately 450 positions throughout its network, which has been deemed to be a surplus to what is currently needed.
Before a decision is made, the airlines said it would embark on consultation with the employees and other stakeholders on the way forward.
The CAL has however given the assurance that the decisions would not impact passenger and cargo services, neither would it affect the quality of service, safety and customer care that it gives to customers.
Air travel across the globe was severely affected by the COVID-19 pandemic, which had brought a halt to all travel.
The Caribbean region was not spared, and longstanding airline LIAT collapsed during 2020 as a result of the border closures, leaving hundreds of unemployed and thousands of passengers with questions about recouping the cost of their tickets, as the airline goes through a court arbitration.
