KINGSTON, Jamaica, January 14, 2010 – Trinidad and Tobago’s state owned Caribbean Airlines is now just days away from taking over Jamaica’s national carrier. A deal in which Air Jamaica will be absorbed into the Trinidad airline is expected to be consummated this weekend, according to a Jamaica government announcement. Under the plan, Caribbean Airlines will grant Air Jamaica equity, but the Jamaican government will have to find J$27 billion (US$301.6 million) in this year’s capital expenditure budget to meet debt and other costs, including the redundancy of hundreds of employees. It is believed that several hundred workers will be on the breadline as a result of the divestment. Other details of the deal have not yet been released. And just days ahead of the long-expected divestment, a new Board has been appointed by the Minister of Finance and the Public Service, Audley Shaw. The five-member team, put in place this week following the expiration of the term of the previous Board, will oversee transitional arrangements and legacy issues surrounding the Air Jamaica divestment. The new Board is led by businessman and Chairman of the Insurance Company of the West Indies (ICWI) Group, Dennis Lalor. The other members are Christopher Zacca, Special Adviser to the Prime Minister; Dr Wayne Henry, Special Adviser to the Minister of Finance and the Public Service; Sancia Templer, President of Jamaica Trade and Invest; and Christopher Berry, Chairman of Mayberry Investments. In addition, an Air Jamaica transition management committee has been set up to help guide the divestment process. That will be led by the airline’s President and CEO Bruce Nobles. The divestment of Jamaica’s national carrier is coming much later than originally hoped. Prime Minister Bruce Golding had announced, in April 2008, government’s plans to divest the airline by the end of that financial year. He had said the decision was taken because government could no longer pile the losses of the airline on the backs of taxpayers “with no end in sight”. Air Jamaica at that time had accumulated losses of over US$1 billion. |
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