Caribbean Airlines recorded loss of $339.5M for 2011

State-owned Caribbean Airlines Ltd (CAL) recorded a consolidated unaudited loss of US$52.8 million TT$339.5 million for 2011. Its subsidiary, Air Jamaica also operated at a loss; the figure was TT$ 245.2 million.

Finance Minister Winston Dookeran made the disclosure Friday in the House of Representatives.

His information contradicts the statement made earlier by the airline's former chairman, George Nicholas III, who boasted last November that CAL made a $200 million profit for 2011. Nicholas also said Air Jamaica also recorded a profit.

George Nicholas III

However doubts were expressed immediately about the formula Nicholas used in arriving at the profit figure. One of the issues raised was whether the airline had included its $279 million fuel subsidy.

Nicholas boasted to reporters that the airline was able to "put millions into the treasury"

Read related story: Doubts expressed over CAL's $200M profit; subsidy may have been left out

Dookeran presented a different picture of the national carrier, noting that CAL is not only losing money in its operations but it is also facing mounting debt, which had reached more than TT$256 million by March 15, 2012.

The Minister gave a breakdown of some of the debt:

• Airports Authority of Trinidad and Tobago — US$8,120,807
• US taxes payable to the Internal Revenue Service — US$6,129,621
• National Petroleum (fuel), Norman Manley International Airport — US$3,850,000
• International Air Transport Association (IATA) — US$3,500,000
• Automated Clearing House/Custom and Excise Passenger Taxes — US$3,152,832
• Strategic Air Services (cargo handling) — US$2,104,58
• Boeing (maintenance) — US$2,058,288
• Avions de Transport Regional (ATR) — US$1,892,000
• Value Added Tax (BIR) — US$1,734,375
• AON Insurance (passenger and aircraft) — US$1,283,980
• Synergy Aviation (aircraft parts) — US$933,250
• Ross Advertising — US$544,829

Dookeran also noted that the airline has also failed to pay the promised US$5 million to the Children's Life Fund. At March 15, 2012, only US$200,000 had been remitted to the Fund, he said.

The Minister was responding to questions filed by Opposition Leader Dr Keith Rowley, who expressed shock on learning of the details.

Nicholas resigned as CAL chairman last month after his line minister publicly gave him a grade of 5 out of 10 for performance. The new chairman is businessman Rabindra Moonan.

CAL Chairman Rabindra Moonan gets his instruments of appointment from Transport Minister Devant Maharaj