BWIA was seized in Miami yesterday for outstanding payments to the owners, the airline confirmed.

"We can confirm that a second plane was impounded at Miami," according to an official of the financially-strapped airline who did not want to be named. The 737 aircraft was seized by International Lease Financial Organization (ILFC) as flight 431 from Port-of-Spain touched down at Miami airport.

Prime Minister Patrick Manning said he has received reports about the seizure of the second aircraft and a Cabinet sub-committee was meeting to determine what the Government should do about the airline's precarious financial situation.

The first aircraft has not yet been released by IFLC, although a "letter of comfort" guaranteeing payment of US$5 million ILFC was signed by Manning and sent to the company.

Government last month agreed to help BWIA with an US$18.5 million loan but funds were not released because a key condition for a change in the airline's management team had not been met by the Board of Directors. The board's majority comprises private sector shareholders.

From the loan, some $4 million were to go towards the outstanding lease on aircraft, $9 million towards severance benefits for workers and $2 million for U.S. transportation taxes, and the balance for working capital.