SINT MAARTEN (SIMPSON BAY-AIRPORT) – WINDWARD ISLANDS AIRWAYS INTERNATIONAL (WINAIR) N.V. and WICSU/PSU who represent WINAIR’s Pilot group remain in discussions regarding the reduction of work hours and resulting reduction in salaries (both work hours and remuneration were reduced equally by 25%) for the pilot group, which was implemented as per April 1, 2020, due to COVID pandemic.
This measure does not only affect the pilots, as it was implemented across the board equally affecting ground personnel, Managers, Executive Management and Supervisory Board. Due to WINAIR’s precarious financial position (a negative equity position) at the beginning of the pandemic, management had to take immediate action to stretch the available cash as long as possible, whilst in the meantime engaging in discussions with banks and its two (2) shareholders to secure the financing necessary to ride out this storm not knowing exactly how long this situation would last.
Based on the developments, aviation experts and regulatory bodies quite soon made it clear that the expectation was that aviation would need at least two (2) years to recover from this pandemic and reach some form of normalcy. WINAIR did not have the financial stamina to survive this period without drastic measures and additional financing, bankruptcy would be imminent. WINAIR’s largest shareholder, Country St. Maarten made clear that it would not be able to provide liquidity support beyond the SSRP due to its own financial position.
The SSRP, although being a welcome tool to preserve employment, was clearly not enough to lower costs sufficiently to match the drop in revenue. The SSRP received was fully paid out to employees.
Compared to the situation before the pandemic, Winair to date has lost around 80% of its revenue and this situation still persists. On December 30, 2020, after nine (9) months of correspondences and discussions with both shareholders, WINAIR was granted a mortgage loan of USD 3 million by its minority shareholder, the Netherlands.
We refer to the numerous media articles in which it was clearly stated that the loan was granted to allow WINAIR to pay its creditors and ultimately prevent bankruptcy. The reduction in hours and resulting reduction in salaries, was not a result of the measures imposed on Country St. Maarten by the Netherlands in order for St. Maarten to receive liquidity support, but a drastic measure that the company had to take to secure its future moving forward and secure employment for its employees, albeit at 75% of their normal work hours and salaries.
All government owned companies and civil servants are required to work a complete work schedule with a salary reduction of 12.5%. WINAIR’s employees are paid for all hours worked, in addition, aggressive cost cutting measures have been achieved with the assistance of all companies that provide goods and services to the company.
Unlike other government owned companies (GEBE, TELEM), who remain with a similar workload pre/post COVID, this is not the case at WINAIR. Simply put, at currently about 20% flight schedule capacity, the workload is not there for our employees nor is the revenue to sustain it.
The COVID pandemic could not be and was not a foreseen event nor the fault of our employees or company and cannot be seen as a normal condition of business, such as an inclement weather event, airport closures, etcetera. These events are local conditions and the effects are resolved in weeks. The Regional Aviation Industry has been especially affected during this pandemic and as previously mentioned, to date WINAIR and other regional carriers have experienced an 80% decrease in revenues and passengers. Many regional airlines have either gone bankrupt or have drastically imposed reduction of salaries, layoffs, fleet and or schedule reductions in order to survive.
Currently there are negotiations with the Netherlands as further financial support is needed if WINAIR is to rebuild its business and return to some degree of normalcy.
The actions taken by WINAIR were absolutely necessary to ensure the very survival of our company. These austerity measures will remain in place until a degree of viability returns. Once viability is achieved WINAIR will return to pre-COVID level of work hours and salaries for our employees.
Unfortunately, an exact date cannot be determined due to lower-than-expected customer demand, constantly changing travel and or entry restrictions and customer demand for our product.
These conditions which have existed since April 1, 2020, have created a possible impasse between WICSU/PSU and WINAIR.
Both WINAIR and WICSU/PSU are searching for a solution. WINAIR may experience some form of industrial action by our flight group and should this occur we will do all possible to provide for our customer transportation needs working with our various partners. WINAIR will do all possible to advise our customers of any possible negative effects minimizing any inconvenience to them. Should you, our customer, be affected, WINAIR sincerely apologizes.
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