After a notable absence from the public, Prime Minister Dr Keith Rowley finally addressed the issues headlining national discourse over the past few weeks.
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‘An IPO solution may make sense for CAL’
The last line of your editorial on Wednesday, March 15, 2017 “Decision time on CAL’s future” stated that “ it makes no sense holding on to a loss-making entity.” I, and I am sure other rational thinkers, would agree to that assessment.
The options at hand to bring Caribbean Airlines out of this mess may be a good starting point to the conversation. I would certainly like for them to be stated by the experts in the field of aviation but most importantly, aviation finance.
While we await their response, let me suggest that the Government of T&T look at the option of divesting its shares in CAL and allowing it to be placed on the market, as it did for First Citizens Bank. An IPO (Initial Public Offering) may raise the needed revenue, allow the public ownership in an entity with historical ties to our country and transform the current business model of CAL to one which is efficient and profitable.
My own opinion is that governments should not invest in aviation companies and enterprises to the extent that it creates financial inefficiencies. If we can’t learn from the past, then our wings will be clipped in the future. An IPO solution may make sense for CAL.