GA 2000 reported facing serious problems
by Michelle Elphage
GUYANA Airways 2000 (GA 2000) is reportedly facing serious problems, top sources said yesterday, indicating that the Chief Executive Officer and another manager of the airline are likely to depart soon. Sources told the Chronicle that CEO Mr Anthony Mekdeci and Operations Manager, Mr Larry Singh might leave the company shortly. Airline officials would not comment on reports that it lost some $800M last year. Contacted yesterday, Mekdeci said he has a contract with GA 2000 which runs until the end of the month but was not sure whether he would be renewing it. "I'm thinking about it," he told the Chronicle. The Chronicle understands that Mekdeci sold his shares in GA 2000 late last year. Singh who resides in New York but is in the country could not be reached for comment. Chairman of the Board, Mr Yesu Persaud yesterday offered "no comment" on the issue. But the Chronicle understands the GA 2000 Board was in a special meeting for about two hours up to last night. Sources told the Chronicle that members of the airline board also met President Bharrat Jagdeo to discuss the problems of GA 2000 but no details were immediately available. On its Sunday flight from the John F. Kennedy Airport in New York, sources said the American food caterer for the airline pulled its trays because the firm was not paid. Mekdeci confirmed that passengers were served sandwiches and soft drinks on the approximately five hours flight to the Cheddi Jagan International Airport, Timehri, but have been offered a small rebate on the purchase of their next ticket in lieu of a meal. A source said the rebate is about US$20. Mekdeci, however, did not say why the caterer did not provide food for the flight. Persaud led a delegation Monday to Trinidad and Tobago for talks with senior officials of the British West Indian Airlines (BWIA). He yesterday said the talks were "exploratory" and GA 2000 would be meeting other airlines. The team included other board members, Mr Vic Ouditt and Mr Hilbert Shields. Head of the Privatisation Unit, Mr Winston Brassington, the government representative on the board, was scheduled to travel with the team but said he did not. Aviation Investments, a consortium led by the Aircraft Owners Association of Guyana (AOAG) won a bid last year for 51 per cent ownership of the national carrier, Guyana Airways Corporation (GAC). The ailing GAC was put up for privatisation after incurring continuous expenses, forcing it into severe financial problems. The government divested the cash-strapped GAC which had debts estimated at US$10M, US$6M stemming from problems with the corporation's leased Boeing 757 aircraft. GAC was forced into stopping all its international flights in February last year and nearly 200 employees were sent home because of a "wet lease" arrangement engaged by the ailing airline. The rest were later retrenched after the divestment of the airline. After winning the bid out of seven offers, AOAG stressed that its intention was to recapture the airline's dominant position as a national flag carrier. The government owns 49 per cent of GA 2000 and was expected at the close of the deal last April to inject a net equity of US$1.7M, while the Aviation Investments consortium was putting in US$1.8M. The new owners also absorbed US$3.3M in debts.
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