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FM
Former Member

CAL doesn’t need bailout yet - Chief Executive

 

By , October 7, 2015, 32 mins ago, Source
 

(Trinidad Guardian) CAL doesn’t need a bailout just yet.

 

That’s the declaration of its chief executive, Michael DiLollo. He said the airline had benefitted from extremely patient shareholders for years and believed the airline was strategically positioned to break even in three years.

 

In early February, then finance minister Larry Howai told Parliament that unaudited accounts for 2014 showed the airline made a loss of US$60 million, inclusive of its Air Jamaica operations, and the airline planned to break even by 2017.

 

Howai had also told the Parliament that a five-year strategic plan had been completed and currently was being approved for implementation.

 

It outlined the transformation of the business model through reassessment of the product, including fleet and network planning, revenue management, pricing and customer service.

 

Speaking yesterday to members of the media at CAL’s Piarco headquarters, DiLollo said:

 

“When I look at the investment that has been afforded to the airline and compare that with my experience in the private sector, it is absolutely astounding.

 

‘“All of the shareholders, whatever the political affiliation, have been extremely patient and extremely committed to this airline over the years.

 

“I am humbled and grateful that they (the shareholders) did it. However, in the current context we need to do better. We need to do better for the shareholders. We need to do better for the people of T&T.”

 

Asked whether the airline planned to seek a bail out, he said: “We are trying desperately to minimise that to zero as quickly as we possibly can but obviously returning value for shareholders in socio-economically balanced manner.”

 

DiLollo, a pilot, said he was ready to land the airline in a break-even financial position and that the airline was “well on our way, very well on our way to achieving that target.”

 

Asked what he meant by “well on our way” he said: “We are about 35 to 40 per cent of the way there. There is much work to do. In the next month as all of the initiatives come into play (it would) add considerably to that progress.

 

He added: “It’s a dynamic environment. We have deployed 32 transformational projects in the company that are starting to yield very positive results. We are very happy with those results today.”

 

While not specifically stating the need for the ticket price to increase for inter- island travel, he said the price of the ticket was not at a suitable rate to attract profitability.

 

He said: “The airbridge at current ticket prices which date back to 1992 is not something we can look at in today’s inflationary realities and say that the T&T (inter-island) route is a positive contribution to CAL.

 

“It is an essential service that we must take very seriously and obviously would require some funding under the current pricing. We just can’t make that work under the current pricing scheme that exists. The T&T airbridge obviously requires some level of assistance.”

 

Routes

• The London route would be dropped effectively on January 10, 2016.

• The decision to drop the route comes after the findings of two consultants.

• The diaspora will be well taken care of.

• Not ruling out a code-sharing agreement with any carrier.

• Assessing the risk/rewards options concerning picking up the Georgetown/Jamaica route. No decision made.

Replies sorted oldest to newest

Originally Posted by Vish M:

It is about time that Guyana establish its own services and minimize its dependence on CAL

Where they get the money from?? remember Jagdeo thief all and now them ministers taking 50% raise. Rice and Sugar DEAD. Back to Calabash and Black Sage ECONOMY.

K
Originally Posted by Vish M:

That's very organic.

 

I am here for a few days, I am observing

 

Rice farmers are getting $2100 per bag for Grade A rice

 

 

100lb bag am i correct ??,ah working on some numbers.

Django
Last edited by Django

There is money for PNC Criminals and House Slaves.  No money even for their Civil Service and Police Slaves.  TUC mouth gat shit now, no talk of Strike or Burn GT down. If PPP took a raise like dat and give Civil SErvice 5% GT would be on FIRE.  This is what we have to deal with!!!

Nehru
Originally Posted by Vish M:

It is about time that Guyana establish its own services and minimize its dependence on CAL

You make me laugh. If Trinidad is struggling with their airline, even as it is a much wealthier island, with a larger middle class, and a more bouyant economy, you want Guyana to start an airline.

 

1.  Guyana does NOT have Cat 1 status, and the FAA rates its CAA as the WORST in the Caribbean, so we will NOT get this soon.

 

2.  With no Cat 1 no Guyanese based airline will have route rights into the USA.  There is absolutely no way that any Guyanese airline will be viable without a JFK route.

 

Aren't you tired of all the fly by night airlines which ver the years you have been promoting?  If Jamaica, and Barbados and the DR do not have nationally owned carriers, I fail to see why Guyana should.

FM
Originally Posted by Mars:
Originally Posted by Vish M:

It is about time that Guyana establish its own services and minimize its dependence on CAL

Like EZ-Jet which you were promoting?


He also promoted Universal, GA 2000, and many other failures that I have forgetten about.  And coming on GNI and arrogantly telling us that we have to use these fraudulent monstrosities.

 

Come high and come low BWIA/CAL have been flying into Guyana and no one can claim that they went belly up. leaving them stranded, having to buy another ticket.

FM
Originally Posted by BGurd_See:

So what is the issue? Over expansion, too many unprofitable routes? With the lower price of gas you would expect profitability.

CAL was managing until Kamla became PM. She promptly made her sister's man the chairman, and put a Hindu priest on its board. So why the shock?

 

The best way to have $1,000,000 is to have $2,000,000 and invest it in an airline.  When politicians are involved, then one might not even have that left.

 

Butch Stewart learned very fast that being an excellent hotelier doesnt mean that he can run a profitable airline.  Air Jamaica's losses were like the national debt of a small island nation.

 

 

FM
Last edited by Former Member
Originally Posted by caribny:
Originally Posted by BGurd_See:

So what is the issue? Over expansion, too many unprofitable routes? With the lower price of gas you would expect profitability.

CAL was managing until Kamla became PM. She promptly made her sister's man the chairman, and put a Hindu priest on its board. So why the shock?

 

The best way to have $1,000,000 is to have $2,000,000 and invest it in an airline.  When politicians are involved, then one might not even have that left.

 

Butch Stewart learned very fast that being an excellent hotelier doesnt mean that he can run a profitable airline.  Air Jamaica's losses were like the national debt of a small island nation.

 

 

I doubt your analysis is sound as you provide no evidence of the reasons for failure other than conjecture which is your usual incoherent diatribe when you lack proof.

Even Michael DiLollo didn't mention anything about Kamla being the blame for the demise of CAL. In fact it is only since Blacks took over the T&T govt that this problem arise. Sounds familiar? Look to Guyana where economic failure is abound and note that once again Blacks are leading the nation back into the dark ages. 

FM
Originally Posted by BGurd_See:
Originally Posted by caribny:
Originally Posted by BGurd_See:

So what is the issue? Over expansion, too many unprofitable routes? With the lower price of gas you would expect profitability.

CAL was managing until Kamla became PM. She promptly made her sister's man the chairman, and put a Hindu priest on its board. So why the shock?

 

The best way to have $1,000,000 is to have $2,000,000 and invest it in an airline.  When politicians are involved, then one might not even have that left.

 

Butch Stewart learned very fast that being an excellent hotelier doesnt mean that he can run a profitable airline.  Air Jamaica's losses were like the national debt of a small island nation.

 

 

I doubt your analysis is sound as you provide no evidence of the reasons for failure other than conjecture which is your usual incoherent diatribe when you lack proof.

Even Michael DiLollo didn't mention anything about Kamla being the blame for the demise of CAL. In fact it is only since Blacks took over the T&T govt that this problem arise. Sounds familiar? Look to Guyana where economic failure is abound and note that once again Blacks are leading the nation back into the dark ages. 

 

Tell it like it is.

FM
Originally Posted by BGurd_See:
 

I doubt your analysis is sound as you provide no evidence of the reasons for failure other than conjecture which is your usual incoherent diatribe when you lack proof.

Even Michael DiLollo didn't mention anything about Kamla being the blame for the demise of CAL. In fact it is only since Blacks took over the T&T govt that this problem arise. Sounds familiar? Look to Guyana where economic failure is abound and note that once again Blacks are leading the nation back into the dark ages. 

When Kamla took over CAL they had CASH.  When Rowley took it back, they were two steps away from bankruptcy.

 

Now go join your Indo KKK buddies if you wish, but I must warn you that since the PPP lost, they have delivered a taste for being jucked by long and thick PNC poles.

 

Rowley took over a mere few days ago.  So you look stupid and racist when you blame him, when every one in Trinidad knows that its Kamla who almost destroyed it.  DiLollo was brought on board, AT GREAT EXPENSE to save it from collapse, hired by Kamla after the clowns who she put to run it destroyed that airline.  One of the clowns even suggesting that CAL begin flights to INDIA!

FM
Last edited by Former Member
Originally Posted by yuji22:
 

Tell it like it is.

You better tell druggie that you, cobra, and Rama love to bend over and spread it for PNC poles, so he better watch himself if he hangs around you lot.  He will have to put his athletic skills to good use, and flee as fast as he can.

FM
Originally Posted by caribny:
Originally Posted by BGurd_See:
 

I doubt your analysis is sound as you provide no evidence of the reasons for failure other than conjecture which is your usual incoherent diatribe when you lack proof.

Even Michael DiLollo didn't mention anything about Kamla being the blame for the demise of CAL. In fact it is only since Blacks took over the T&T govt that this problem arise. Sounds familiar? Look to Guyana where economic failure is abound and note that once again Blacks are leading the nation back into the dark ages. 

When Kamla took over CAL they had CASH.  When Rowley took it back, they were two steps away from bankruptcy.

 

Now go join your Indo KKK buddies if you wish, but I must warn you that since the PPP lost, they have delivered a taste for being jucked by long and thick PNC poles.

 

Rowley took over a mere few days ago.  So you look stupid and racist when you blame him, when every one in Trinidad knows that its Kamla who almost destroyed it.  DiLollo was brought on board, AT GREAT EXPENSE to save it from collapse, hired by Kamla after the clowns who she put to run it destroyed that airline.  One of the clowns even suggesting that CAL begin flights to INDIA!

This is not correct, did you check Rowley's bank account? CAL drove detla out of Guyana by undercutting the price. The high price of fuel over they years must have had an impact. The black kkk in you rush to blame Kamla without the proper analysis.

FM
Originally Posted by BGurd_See:
!

This is not correct, did you check Rowley's bank account? CAL drove detla out of Guyana by undercutting the price. The high price of fuel over they years must have had an impact. The black kkk in you rush to blame Kamla without the proper analysis.

Your racist rant against Rowley is noted.  Kamla was dumped because of corruption, Rowley has not even been there for a month, and yet you accuse him of corruption. 

 

Kamla LOST, and clearly it is because Trinidadians and Tobagonians DO NOT WANT HER!

 

Druggie you fled because we bashed you fdaily for how ignorant you were, and in fact GNI voted almost unanimosly to have you temporarily excluded.

 

I see in your absence you havent learned anything new.

 

 

CAL did NOT drive  Delta out of GEO.  DL got tired of the drug situation, and were also tired of the high fuel charges at GEO. When they considered these two facts GEO was no longer a good use of aircraft.  

 

DL competes against CAL into Montego Bay and did also into Grenada until Jetblue entered that market, forcing CAL to exit.  So why no complaints about CAL there?

 

Delta gets subsidies to fly to Barbados and Grenada, and they do not bawl about that.

 

CAL was already getting fuel subsidies when DL entered the GEO market. All that happened was that EZ jet entered the market, charged ridiculously kow fares, and both CAL and DL lost millions while they had to ddrop fares.

 

You know nothing and need to cease babbling to expose this fact!

FM
Originally Posted by caribny:
Originally Posted by BGurd_See:
!

This is not correct, did you check Rowley's bank account? CAL drove detla out of Guyana by undercutting the price. The high price of fuel over they years must have had an impact. The black kkk in you rush to blame Kamla without the proper analysis.

Your racist rant against Rowley is noted.  Kamla was dumped because of corruption, Rowley has not even been there for a month, and yet you accuse him of corruption. 

 

Kamla LOST, and clearly it is because Trinidadians and Tobagonians DO NOT WANT HER!

 

Druggie you fled because we bashed you fdaily for how ignorant you were, and in fact GNI voted almost unanimosly to have you temporarily excluded.

 

I see in your absence you havent learned anything new.

 

 

CAL did NOT drive  Delta out of GEO.  DL got tired of the drug situation, and were also tired of the high fuel charges at GEO. When they considered these two facts GEO was no longer a good use of aircraft.  

 

DL competes against CAL into Montego Bay and did also into Grenada until Jetblue entered that market, forcing CAL to exit.  So why no complaints about CAL there?

 

Delta gets subsidies to fly to Barbados and Grenada, and they do not bawl about that.

 

CAL was already getting fuel subsidies when DL entered the GEO market. All that happened was that EZ jet entered the market, charged ridiculously kow fares, and both CAL and DL lost millions while they had to ddrop fares.

 

You know nothing and need to cease babbling to expose this fact!

 What I know is that since  Rowley took over, CAL is now under financial strain. Why don't he fix CAL and how did Kamla and her clan mess up CAL? Do you have evidence of this?

A dunce like yourself would not know that CAL's woes began with the takeover of Air Jamaica which burdened the airline with its debt. See this article from 2013 where executives were to blame:

Caribbean Airlines Forced to Write off (TT) $200 Million in Losses
 Comment  Print

By Tony Best

         

Caribbean Airlines, Trinidad and Tobago national carrier, which took over a financially weak Air Jamaica a few years ago, is now facing its own woes, writing off hundreds of millions of dollars in losses and grappling with a mountain of debt.

At the same time, its financial statements are awash in red ink.

As a matter of fact, the regional airline which is owned by the Trinidad and Tobago and Jamaica governments is in the same dire financial situation as BWIA, the airline it succeeded in 2007. Trinidad and Tobago is the majority shareholder.

And the fingers of blame are being pointed at CAL’s board of directors and its top management, both of which stand accused by unnamed corporate executives and the Trinidad Express, the country’s leading daily paper, of allowing the airline to operate without effective financial controls, a failure that contributed to high annual losses recorded between 2010 and last year. In addition, critics charged that  both management and board of unwisely returning to old unprofitable and abandoned routes, including London while adding new ones without first considering their profitability. Even worst, they are being accused of allowing Air Jamaica’s operations to “die a slow and painful death” instead of boosting the brand after its acquisition.

FM

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