Caribbean Airlines owes the Airports Authority of Trinidad and Tobago (AATT) approximately $35 million and has 60 days to pay off the debt.
This was revealed when the AATT met with Parliament’s Public Accounts Committee (PAC) yesterday. The PAC examined AATT’s audited financial statements from 2013 to 2019 and followed up on the implementation of recommendations in the PAC’s 18th report.
AATT deputy chairman James Philbert said they lost about 95 per cent of revenue during the pandemic but was back to about 90 per cent of the pre-COVID figures and for fiscal 2023, had a $2.8 million surplus.
The authority’s general manager Hayden Newton said AATT’s current receivables are better than what it was from 2013 to 2019. AATT’s submission to the PAC noted substantial write-offs. Newton said the major write-off was to Caribbean Airlines.
The authority’s financial controller Carmela Wallace-Shanklin said Cabinet approved a write-off for CAL of $205 million, which represented debt to AATT from 2007 to 2019 for rent of CAL’s hangar space and head office.
“Currently, our debt is approximately $72 million and of that $72 million, 50 per cent of it is collectible from CAL. Our debtor days is currently 72 days and our relationship with CAL has severely improved over the past couple months in terms of their debt repayment and we expect that our $72 million in debt will be collected,” she added.
“CAL is 50 per cent of our $72 million, so they’re a little over $35 million in debt to us and CAL’s debt is approximately 60 days outstanding.”
On if there were any debt cancellations, Wallace-Shanklin said, “During the period under question, Cabinet would have also approved a write-off back in 2017-18 of $30 million and of that, $30 million, approximately $15-16 million, would have related to BWIA 1995 Ltd. These are older debts than the year 2000 when BWIA would have changed, they’d have changed many times over the period. So those would have been very old debts. Then we’d have had other airlines that went bankrupt like Guyana Airways, Air Caribbean and Liat—Liat had an old debt also.”
“So debt, prior to the year 2000, all of that was written off with Cabinet approval in 2017 and 2018 to try to clean up the receivables of those very old airlines and very old debts. That’s in 2018,” she added.
Law on marijuana a problem for authority
On recruitment quality, Newton said in recent times, AATT had amended the process with security divisions and added polygraphing to the background and due diligence testing.
“And (polygraphing) has caused a challenge—we’ve had a high failure rate. That’s been a challenge and it’s affected our engagement in terms of the security department,” the general manager said.
He added, “One of the challenges that’s happened in T&T is with respect to the decriminalisation—of an extent—of marijuana. Getting into the AATT, it’s a zero tolerance with respect to that given our environment, and we’ve had to weed out a lot of people who otherwise would have been a good fit. Even in terms of the questioning, you pick it up in terms of the polygraphing. That’s been a challenge for us, other entities introducing polygraphing, that’ll be a challenge they’ll have to deal with.”
AATT is now recruiting aviation screening officers in Tobago for the airport there, which will have a combination of these officers and estate constables, which Piarco (International Airport) also has. Background checks are also done at other points beyond entry.
On inconsistencies regarding what happens with passenger flow with border control—Immigration Division and Customs and Excise—Newton said AATT had tried moral suasion and assisting with personnel.
“And sometimes we’re told ‘that ent your business’. But it’s a problem for us as an airport service provider.
“For a time in January, I couldn’t sleep because I’d get calls at 2 am on what was happening. I’d say it’s beyond my remit to actively help with this. It’s a challenge we as a nation have to find a solution to. It’s a significant bugbear for T&T’s development in terms of passenger movements,” he said, adding the authority will assist in 2024 with bag drops and expediting security.
AATT not responsible for airport’s renaming
The matter of renaming the Piarco International Airport to honour late former prime minister Basdeo Panday is not before the AATT for consideration.
PAC member Jearlean John asked if the issue of changing the airport’s name to honour Panday was being given any thought by the authority.
Since Panday’s death, there have been calls from businesspeople, former politicians and members of the public to have the airport’s name changed to the “Basdeo Panday International Airport.”
Newton said the issue was not currently engaging the AATT’s attention.
“In any event as the airport operator, as the management and Board of AATT, the naming of the airport is really for the owners to determine, so it’s really not something before us,” he said.