In 1968, BWIA International Airways underwent a significant corporate transformation through a series of complex negotiations and agreements. The culmination of nine months of intense discussions resulted in binding contractual obligations for the Trinidad and Tobago government and the airline, formalized through agreements dated May 24, 1968. These arrangements did not represent a departure from previously contemplated plans but rather established an acceptable framework for executing agreed undertakings, with copies promptly distributed to interested West Indian governments.
The restructuring initiative began with a board reconstitution in February 1968, following Sir Patrick Hobson’s resignation. Hobson explicitly noted that BWIA’s viability depended on association with strong external financial interests, modern equipment acquisition, and managerial reorganization. The newly formed board, chaired by Sir Ellis Clarke with directors J M Scoon, Gerald Montes de Oca, and Donald J Urgo, immediately engaged Trans World Airlines (TWA) through a 90-day interim management and technical assistance agreement.
A three-member TWA advisory team led by J I Greenwald arrived in Port of Spain on February 12, 1968. Within two days, the board designated Greenwald as acting CEO to implement essential organizational reforms, addressing the managerial and technical skill deficiencies identified by the previous leadership. This advisory contract was subsequently extended to July 1968 pending US Civil Aeronautics Board (CAB) approval of a proposed three-year management agreement.
The comprehensive arrangement included a ground handling agreement at New York’s JFK Airport effective November 1, 1968, and a reciprocal sales agency agreement originally scheduled for October 1, 1968. However, neither the management assistance nor sales agency agreements were implemented due to adverse rulings from the CAB, which held jurisdiction over TWA. These interconnected agreements formed a composite arrangement whose failure in one component undermined the entire structure.
Simultaneously, an investment agreement involving Goldfield Corporation—whose shares traded on the American Stock Exchange—Caribbean International Ltd, R W Pressprich and Co International Ltd, and Lorenzo, Carney and Company Inc., collapsed when Goldfield deemed US Foreign Direct Investment Regulations too onerous. By December 1968, it became apparent that Caribbean International could not fulfill its obligations under the May 24 agreements.
Subsequent negotiations produced revised agreements in 1969 that increased BWIA’s compensation from $6 million to $8 million while maintaining hotel development commitments at Rockly Point, Tobago. The government facilitated this arrangement by repurchasing British Overseas Airways Corporation’s 10% shareholding for $250,000—the same price originally paid in 1961. Payments of $2 million on January 31, 1969, and $6 million on June 23, 1969, were ultimately executed under these revised terms.