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The long expected divestment of Air Jamaica now seems to be close at hand, almost a year later than originally planned.
Despite some local opposition in Trinidad & Tobago that country's state owned Caribbean Airlines, is now apparently ready to take the failing Air Jamaica off the Jamaican government's hands.
Sources close to the divestment talks say a final deal with the Trinidadians is almost complete, with an agreement seeing Caribbean Airlines absorbing Air Jamaica into its operations just days away from being signed.
It is understood that the Trinidadian government will not pay any money but the Jamaican government will be getting a stake in Caribbean Airlines.
Less than half of 1,200 workers to keep their jobs
It is also understood that under the pending agreement, the name Air Jamaica which the Jamaica government was adamant be kept, will go and so will most of the airline's staff.
Early projections from Caribbean Airlines are that only 350 of the now more than 1,200 staff members will be kept.
Already the Bruce Golding administration is considering setting aside $27 billion in next year's budget to tackle the costs that will come with the divestment of the airline, including redundancy payments, overseas taxes and leases for aircraft that will no longer be needed in a new structure.
Altogether, the talk is that at least three routes, Havana, Cuba, Orlando, Florida and Nassau, Bahamas will be cut, but negotiations are taking place to try to keep at least one.
Air Jamaica has lost at least US$90 million already this year and projections are that losses before divestment could mount to US$120 million.
Saving jobs
Ahead of the official announcement of Air Jamaica's divestment, the main trade union that represents workers at the national airline is already making a pitch to save some of the jobs.
According to Kavan Gayle, President General of the Bustamante Industrial Trade Union, it is crucial for the negotiators to consider retaining some of the airline's staff in the new dispensation.
"If a deal is brokered between Caribbean Airlines and the government of Jamaica we would hope that deal would include utilizing the staff at Air Jamaica as greatly as possible because of a number of reasons: the market that Air Jamaica carries is a market that is expertly driven by the culture that we have in terms of effectively carrying the tourists. Additionally, we believe that the Air Jamaica staff has the level of competency and experience in performing the service require by any airline" he said.
http://www.radiojamaica.com/content/view/24265/26/
Despite some local opposition in Trinidad & Tobago that country's state owned Caribbean Airlines, is now apparently ready to take the failing Air Jamaica off the Jamaican government's hands.
Sources close to the divestment talks say a final deal with the Trinidadians is almost complete, with an agreement seeing Caribbean Airlines absorbing Air Jamaica into its operations just days away from being signed.
It is understood that the Trinidadian government will not pay any money but the Jamaican government will be getting a stake in Caribbean Airlines.
Less than half of 1,200 workers to keep their jobs
It is also understood that under the pending agreement, the name Air Jamaica which the Jamaica government was adamant be kept, will go and so will most of the airline's staff.
Early projections from Caribbean Airlines are that only 350 of the now more than 1,200 staff members will be kept.
Already the Bruce Golding administration is considering setting aside $27 billion in next year's budget to tackle the costs that will come with the divestment of the airline, including redundancy payments, overseas taxes and leases for aircraft that will no longer be needed in a new structure.
Altogether, the talk is that at least three routes, Havana, Cuba, Orlando, Florida and Nassau, Bahamas will be cut, but negotiations are taking place to try to keep at least one.
Air Jamaica has lost at least US$90 million already this year and projections are that losses before divestment could mount to US$120 million.
Saving jobs
Ahead of the official announcement of Air Jamaica's divestment, the main trade union that represents workers at the national airline is already making a pitch to save some of the jobs.
According to Kavan Gayle, President General of the Bustamante Industrial Trade Union, it is crucial for the negotiators to consider retaining some of the airline's staff in the new dispensation.
"If a deal is brokered between Caribbean Airlines and the government of Jamaica we would hope that deal would include utilizing the staff at Air Jamaica as greatly as possible because of a number of reasons: the market that Air Jamaica carries is a market that is expertly driven by the culture that we have in terms of effectively carrying the tourists. Additionally, we believe that the Air Jamaica staff has the level of competency and experience in performing the service require by any airline" he said.
http://www.radiojamaica.com/content/view/24265/26/
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