Estimated $110 Million For CAL Severance

Government will pay out just over $100 million in severance benefits to employees of Caribbean Airlines once the retrenchment process is completed. Minister of Finance, Colm Imbert, responding to a question in the Senate on Tuesday, said CAL is currently finalising the exact number of personnel who will be affected by the reduction of staff. Minister Imbert said CAL does not have the required finances for severance payments therefore the severance payments will be financed by the Ministry of Finance. Minister Imbert said when the borders are reopened, CAL will have a reduced jet fleet and ATR fleet and will service fewer routes. He said this is based on the advice from CAL's consultants that passenger demand is not expected to return to pre-covid levels before 2023. On Monday CAL said 25% of its workforce, approximately 450 people, are surplus to its needs. The Airline's unaudited financial results for the first quarter of 2021 showed a loss of $172.7 million.