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Air J board asked to resign
BY VERNON DAVIDSON Executive Editor - Publications davidsonv@jamaicaobserver.com
Wednesday, June 25, 2008
The entire Air Jamaica board was yesterday asked to resign amid growing concerns within the Government that the ailing national carrier is being badly managed, a highly placed source confirmed to the Observer last night.
"Yes, a new board is being put in place" the source, who opted for anonymity, responded to an Observer query.
The source declined to say when the resignations would become effective, offering only that a new board would be appointed in a few weeks.
Another source close to developments at the airline said that another factor that influenced the decision to change the board was the Government's desire to transform Air Jamaica into a lean operation in preparation for divestment next March.
On Monday, Prime Minister Bruce Golding told guests attending the launch of National Export Week at the Hilton Kingston Hotel, that the country could no longer shoulder the burden of the loss-making airline.
"I know the importance of Air Jamaica to the country and tourism, and the passion that people feel towards the airline, but we are losing 10 billion Jamaican dollars on it," Golding said.
Last year, Air Jamaica lost US$170 million, and this year it is projected to lose US$200 million. At least one major international carrier is said to have expressed an interest in investing in Air Jamaica, and as part of its bid has offered to repair the flood-prone Palisadoes road that leads to the Norman Manley International Airport in Kingston.
The Jamaica Labour Party, in its manifesto for last September's general election, had listed the divestment of Air Jamaica as one of its plans for the transport sector.
The party, which eventually won the election, said it would pursue negotiations for an equity partnership with a suitable international airline to revitalise Air Jamaica. Under the plan, the Government is to retain part ownership of the carrier which would "retain its name and its unique Jamaican characteristics".
Last month, the administration received a US$820,000 grant from the United States Trade and Development Agency to assist in the divestment process.
But even as the Government has been laying the groundwork to sell the airline, it has reportedly not been pleased with how it is being managed.
Sources inside the airline said that the Government has not been impressed with the performance of chairman, Shirley Williams. In addition, the sources said her action on June 5 in ordering a flight to return to board an Inter-American Development Bank official after the aircraft's doors were closed did not go down well with the Government.
They also said that the recent resignation of Noel Hylton from the board was an indication of the administration's intention to revitalise the management.
It was not clear last night who would be invited to sit on the new board. However, the Observer source said that current members Paul Lalor and Richard Byles would likely be asked to serve again, as the Government was impressed with their performance.
BY VERNON DAVIDSON Executive Editor - Publications davidsonv@jamaicaobserver.com
Wednesday, June 25, 2008
The entire Air Jamaica board was yesterday asked to resign amid growing concerns within the Government that the ailing national carrier is being badly managed, a highly placed source confirmed to the Observer last night.
"Yes, a new board is being put in place" the source, who opted for anonymity, responded to an Observer query.
The source declined to say when the resignations would become effective, offering only that a new board would be appointed in a few weeks.
Another source close to developments at the airline said that another factor that influenced the decision to change the board was the Government's desire to transform Air Jamaica into a lean operation in preparation for divestment next March.
On Monday, Prime Minister Bruce Golding told guests attending the launch of National Export Week at the Hilton Kingston Hotel, that the country could no longer shoulder the burden of the loss-making airline.
"I know the importance of Air Jamaica to the country and tourism, and the passion that people feel towards the airline, but we are losing 10 billion Jamaican dollars on it," Golding said.
Last year, Air Jamaica lost US$170 million, and this year it is projected to lose US$200 million. At least one major international carrier is said to have expressed an interest in investing in Air Jamaica, and as part of its bid has offered to repair the flood-prone Palisadoes road that leads to the Norman Manley International Airport in Kingston.
The Jamaica Labour Party, in its manifesto for last September's general election, had listed the divestment of Air Jamaica as one of its plans for the transport sector.
The party, which eventually won the election, said it would pursue negotiations for an equity partnership with a suitable international airline to revitalise Air Jamaica. Under the plan, the Government is to retain part ownership of the carrier which would "retain its name and its unique Jamaican characteristics".
Last month, the administration received a US$820,000 grant from the United States Trade and Development Agency to assist in the divestment process.
But even as the Government has been laying the groundwork to sell the airline, it has reportedly not been pleased with how it is being managed.
Sources inside the airline said that the Government has not been impressed with the performance of chairman, Shirley Williams. In addition, the sources said her action on June 5 in ordering a flight to return to board an Inter-American Development Bank official after the aircraft's doors were closed did not go down well with the Government.
They also said that the recent resignation of Noel Hylton from the board was an indication of the administration's intention to revitalise the management.
It was not clear last night who would be invited to sit on the new board. However, the Observer source said that current members Paul Lalor and Richard Byles would likely be asked to serve again, as the Government was impressed with their performance.
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