T&T: Pouring more money down a black hole

GOVERNMENT yesterday threw cash-strapped BWIA a crucial lifeline by injecting US$10 million into BWIA and converting some US$30 million of the airline’s debt into equity. Addressing the post-Cabinet news conference at Whitehall, Trade and Industry Minister Ken Valley said: “BWIA suffered losses over the last few years which had the effect of eroding its equity capital and the Government has agreed to restructure the balance sheet by converting some of the debt on the balance sheet into equity and in addition provide up to US$10 million. In the total package, we are underwriting US$40 million. US$30 million of that will be the conversion of debt to equity and further US$10 million will be new money going into BWIA.”

Ridiculous. Dump BWIA and have Jet Blue run Caribbean flights. That'd be far cheaper for travelers.