Guyana Chronicle
May 30, 2001
THE troubled Guyana Airways 2000 (GA 2000) airline yesterday announced a further suspension of its flight operations while it embarks on a review of its business position.
As the firm's Board of Directors remained optimistic that its operations can be restarted within a month with the airline maintaining its status as the national carrier, President Bharrat Jagdeo moved to help some 300 stranded GA 2000 passengers get back to North America.
The Office of the President said Mr. Jagdeo has spoken to BWIA Chief Executive Officer, Mr. Conrad Aleong about "putting in place an arrangement" so that those stranded here can be "flown home at the earliest opportunity."
The government has shares in the airline but an official source stressed it was "not bailing out" GA 2000, explaining that the President's move was "purely a humanitarian gesture".
The Office of the President, in a statement, said the stranded passengers had appealed to the President "for his assistance so that they can return home."
It said the government will cover the return cost of the stranded GA 2000 passengers.
In a statement, the airline Board said it may to be able to restart operations with strategic partners providing vital support in aircraft, marketing, training, maintenance and routing, if ongoing discussions with several U.S. and Caribbean airlines are successful.
The discussions began on the advice of consultants with specialist knowledge of the Caribbean airline industry, it said.
The airline has also appealed to passengers who have been inconvenienced and are understandably upset, to refrain from being abusive to its customer staff who "can do no more than is possible" to meet their demands.
It is too, doing everything that can be done, in the circumstances, to service stranded passengers who will be notified as soon as arrangements are in place to address their situation, the airline said.
GA 2000 said its immediate priorities must be to its customers, employees and creditors.
And, while it has been able to make alternative flight arrangements for transferring the majority of its passengers with return tickets to BWIA and North American Airlines, a lack of liquid funds coupled with the unavailability of BWIA seats, particularly to Toronto, has presented the airline with an increasingly difficult problem, it said.
The airline explained that it currently holds more than US$1M in cash deposits combined in a special trust account in Toronto, with First Data Marketing Services (FDMS), a U.S. credit card management service and with Airline Reporting Corporation (ARC), covering travel agencies specifically for the purpose of protecting passengers.
But it said the reconciliation process involved in the forward sales of the airline business does not permit immediate access to liquidity from these accounts to allow for the servicing of passenger transfer or refund by the airline to the passenger.
In the circumstances, the airline is seeking other solutions to the problem.
The airline said it will in the meantime maintain its airport handling operations with a minimum of staff reductions.
Most employees who are directly connected with flight operations have been asked to accept a no-pay leave arrangement, while a skeleton staff is retained for administration and customer services, it reported.
On Monday, GA 2000 Directors, including one representing the government, and management met employees to explain company's position.
The employees were told of the strategic review being undertaken of the airline's operation, with regards to attracting new investment and establishing an operational alliance with major U.S. and Caribbean-based airlines, it said.