WILLEMSTAD--The "through start" of Air ALM as Dutch Caribbean Airline (DCA) has come closer now that the new company has received the necessary flight permits and the unburdened assets of ALM.
Financing can now be sought for the necessary working capital, confirmed Air ALM's supervising foundation chairman Bas Kooijman. He said privatizing Air ALM, as originally intended, proved impossible with a debt of 250 million guilders and no money from either the local or Dutch governments.
He said considering the foundation's second task of safeguarding air transportation between the Antillean islands, dissolving Air ALM and creating a new airline to take over was the best option. DCA (trade name Dutch Caribbean Express) received its permits on May 3.
In close consultations with the Federal and Island Receivers in Curacao, preferential creditors for 20 and 40 million guilders respectively, it was decided to execute an underhand sale of the unburdened assets, including buildings, aircraft parts, office furniture and computers valued at 25 million guilders and place them under DCA, owned by the Island Territory of Curacao.
The assets will allow DCA to accumulate working capital for what has been termed a "lean and mean" airline, free of the debt burdens of Air ALM and its operational losses, so that it can be privatized more easily as well.
The matter of personnel is crucial. Currently, Air ALM Holding, Air ALM Airlines, Air ALM Catering and Air ALM Ground Handling employ a combined 900 people. Talks with the labour unions have already started.
Catering and ground handling are in the process of being privatized, while DCA will employ no more than 500. It will take over the current fleet with its financial obligations ("burdened" assets).
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