Nicholas says Dookeran didn't explain full details on CAL's finances

Former CAL chairman George Nicholas III

The former chairman of Caribbean Airlines Ltd (CAL) disagrees with the figures presented in Parliament on Friday by Finance Minister Winston Dookeran showing that the national airline registered a loss of $339.5 million for 2011.

Read the story: Caribbean Airlines recorded loss of $339.5M for 2011

George Nicholas III told local media Dookeran didn't present all the relevant facts to explain why the airline showed a loss instead of the $200 million profit that the airlines expected.

In November last year Nicholas told the media CAL was making money, with a profit of $200 million profit. He said that was based on the figures that management presented to him.

However, Nicholas explained that changed because the government reduced the fuel subsidy figure. “In November 2011 the fuel subsidy was reduced without consultation by the minister and the price CAL had to pay was retroactively increased as from January 2011."

He charged that unexpected development "was an attempt to play politics with the livelihood of all those who work so hard for CAL was an increase of 50 per cent to $2.34.”

Nicholas said the reduction came after passengers and freight clients had already paid for service at the old rate and the airline could not recover the substantial loss. “That wiped out the prospective profit and caused an unanticipated loss. Had we known the fuel price, the cost of fares would have been different,” Nicholas said.

He also noted that the fuel price has been reduced to $1.50 for 2012 and added that the finance ministry did not “fully” pay the subsidy at either the old or new rate during the period. He said the airline's revenue for 2011 exceeded $2.4 billion.

“CAL was constantly having to go with its begging bowl seeking the money that it was entitled to receive. Even at the new rate there was a constant begging for the ministry to be timely with the subsidy payments," Nicholas said.

"The amounts owed by the ministry last year were significantly higher than recited on (Friday) and included several previous years for which the minister might wish to account,” he said.

Nicholas also said his board inherited considerable debt accumulated by the previous administration. He said, "They left many bills unpaid, something that warrants more political attention but is ignored at the expense of making rather pathetic cheap political and personal jibes".

 Reporters asked Dookeran to comment on the claims by Nicholas but the minister declined.