Coming soon to an airport near you: Williams Air(?) (DISCLAIMER: IANAE, I Am Not An Economist)

(DISCLAIMER: IANAAIE, I Am Not An Airline Industry Expert)

(DISCLAIMER: IANAA, I Am Not An Accountant)

(DISCLAIMER: IANAP, I Am Not A Politician)

I'm going to go out on a wing here (a wing, get it? LOL) and make a bold prediction. I predict that within ten years (maybe less), the Williams brothers (Sir Charles O. Williams and Ralph 'Bizzy' Williams) will provide an airline service to Barbadians and eventually, Caribbean citizens as well.

What am I basing this prediction on? Have a look at today's Nation newspaper and you might see why (and possibly disagree with me). The front page headline, 'SIR CHARLES' WINGS,' gives details on the Williams' brothers plans to purchase their own plane to transport them and their employees across the region (for business meetings, etcetera).

The newspaper article starts off by landing a powerful blow square on LIAT's jaw. After all, when you have two of the region's most successful entrepreneurs identify and complain about the service and performance levels of your company, what do you expect to happen next?

Simple. They find a solution. In this case, they bought their own plane. Where some see problems, others, in particular the Williams' brothers, see opportunity. With their own plane, they and their staff should, in theory, be able to get around a lot more efficiently.

As for the costs, I'm sure they've done all of their homework. The plane, and associated expenses, will probably payback for itself within a few years in terms of the time and money saved in having to NOT depend on LIAT. Else, why bother purchasing a plane in the first place?

Savvy business people do not (usually) throw good money behind bad money, and if they do, it's only for a very short period of time. A airplane purchase is not a 'short time' kind of purchase. It's a major investment.

I'm also guessing that they will not treat the plane as a 'company vehicle,' so to speak. They'll setup a new, seperate company, let's call it Williams Air Inc., for the purpose of this article. This new company will charge the other Williams' companies for the use of the plane and related services.

For example, if Sir Charles wants to travel to St. Lucia, Williams Air will bill C. O. Williams Construction. Williams Air probably won't make a lot of profit (running a plane isn't cheap), if any at all, so it won't be paying a lot of taxes, but then again, remember, IANAA (I Am Not An Accountant).

Over time, WA (Williams Air) may not do as much travelling as it used to in its earlier days. Maybe the business interests of the Williams' brothers across the Caribbean may decline (doubtful). So, what to do with the airplane and all of the related bits? Ante up lots of cash, buy (or lease) another two planes and start a public airline.

In the past (if I remember correctly), Ralph 'Bizzy' Williams has spoken about an island-to-island ferry service. Why bother with a ferry service when you can offer an airline service? And with the Williams' brothers running the business as a PRIVATE concern (that is, no Government ownership) you can be quite sure that there will be no wastage, red tape and inefficiencies. It will be profit driven, as most private sector based enterprises usually are. It may even end up being a 'no frills' type airline, or one geared for executive travel only.

CSME (or the advent of it, as I'm not well versed on the subject) and the free movement of labour throughout the region may also be an incentive for a new, privately owned, airline. If, in theory, there is an increase in the flow of labour (and I mean skilled as well as unskilled) between the islands, then an efficient and affordable airline service will be an important requirement.

But then again, what do I know? I'm certain that there are dozens upon dozens of factors that I haven't even considered. As I stated at the begnning of this post: IANAE, IANAAIE, IANAA and IANAP.

:-)

Labels: Barbados, business, economics, life, money

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