"The Government has said to the Board, that as part of any money we are making available, we want this (conditions) done," Public Administration Minister, Dr. Lenny Saith told reporters following a special session of the Cabinet which met to consider BWIA's financial situation and their latest business plan.

Some $25M will go towards the outstanding lease on aircraft, $56M towards severance benefits for workers, $12.5M for U.S. transportation taxes and more than $20M for working capital.

Saith said the Government's assistance to BWIA is in the context of a proposed regional airline which it wants the national carrier to be a part of.

Outlining the various conditions attached to the loan, he said BWIA must seek to implement them in the shortest possible time.

Among them, increase productivity of the flight staff by revising their work and rest regulations, review and revise executive compensation, contracts and all other salaries and allowances from April 1 and review and revise the policy on free and rebated travel by staff and retirees to reflect the financial conditions of the airline.

The Government has also mandated the Board of Directors to review the current management team and restructure the way the airline is managed.

"We have agreed to bring a consultant on Board to go into BWIA and advise on transitional arrangements for a regional airline and what are the implications for Bwee, they would determine what funding Bwee would require during this transitional period, recommend the configuration and appropriate and management structure including any new regional airline and they would outline the operational requirements for positioning Piarco (airport) as an air transportation hub," said Saith.

The consultant will report to an Inter-Ministerial Committee headed by Saith by the end of June.

The Government will also set up a technical committee to deal with air transportation issues such as the air transport authority, how pricing in the region is developed, charters and predatory pricing.

"The bottom line is we will help Bwee. We ask them to do what they say they will do, we've asked the private shareholders whether they are prepared to assist and the consultancy that will take place will look at Bwee and also that the Board must review and revise the management arrangements that are now in place at Bwee," said Saith.

He said the Government was assisting BWIA very much in the way it was helping island-hopper LIAT.

Last weekend in Barbados, several governments, including Trinidad and Tobago, agreed to a financial bailout for LIAT.

The Trinidad and Tobago Government divested BWIA in 1994-1995, remaining with a 33 per cent stake and another 15 per cent on behalf of employees as part of an Employees Stock Ownership Plan.