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'The facts about Air Jamaica's acquisition'
Wednesday, September 19, 2007
Dear Editor,
I have just been made aware of your September 3 article, "Part 2 of Keith Senior's story" which contains certain factual inaccuracies concerning the initial privatisation of Air Jamaica which I would like to clarify for the record.
The article states: "Three days before ownership of Air Jamaica, the national airline, was to change hands in June 1994, the Canadian investor who partnered with Peter Rousseau bailed out, causing the US$24.6-million privatisation bid to collapse."
This is factually inaccurate. It was myself, working with Captain Lloyd Tai of Air Jamaica and both Noel and Patrick Moo Young, who put together the initial Air Jamaica Investment Group and negotiated the privatisation agreement with the government.
I brought in the experienced Canadian airline investment group, Canadian Investors Corporation, headed by Michael Cochrane, a former vice-president of finance at Air Canada. On the Jamaican side, the Moo Young family partnered with the National Commercial Bank under the leadership of Don Banks.
The NCB insisted on having a controlling 51 per cent interest in the overall acquisition, and the Canadian group was to take a 25 per cent stake in the investment and provide an experienced management team for the privatised airline.
After the Privatisation Agreement had been negotiated, control at the NCB changed hands and the NCB "bailed out", reducing its commitment from 51 per cent to 5 per cent. The Moo Young interests brought in Peter Rousseau - whom we had never previously met - as their new partner, and they collectively pressured us (the Canadian group) to increase the level of their investment which we were not prepared to do, especially with partners with whom we had no prior relationship.
We, the Canadian group, the group that was to have provided the aviation management expertise to the privatised airline, never wavered in our initial and final commitment to a 25 per cent financial interest in the privatised airline, but were not prepared to increase that commitment.
As a result, the privatisation deal would have failed owing to the "bail out" by the NCB and we, the Canadian group, agreed to a request by the Jamaican interests to withdraw from the group so that they could bring in Gordon Stewart, a successful hotel operator, as the controlling investor.
I trust that this sets the record straight that it was not the Canadian Group that "bailed out," but rather the NCB.
John Gilmore
Montreal, Quebec
Canada
Wednesday, September 19, 2007
Dear Editor,
I have just been made aware of your September 3 article, "Part 2 of Keith Senior's story" which contains certain factual inaccuracies concerning the initial privatisation of Air Jamaica which I would like to clarify for the record.
The article states: "Three days before ownership of Air Jamaica, the national airline, was to change hands in June 1994, the Canadian investor who partnered with Peter Rousseau bailed out, causing the US$24.6-million privatisation bid to collapse."
This is factually inaccurate. It was myself, working with Captain Lloyd Tai of Air Jamaica and both Noel and Patrick Moo Young, who put together the initial Air Jamaica Investment Group and negotiated the privatisation agreement with the government.
I brought in the experienced Canadian airline investment group, Canadian Investors Corporation, headed by Michael Cochrane, a former vice-president of finance at Air Canada. On the Jamaican side, the Moo Young family partnered with the National Commercial Bank under the leadership of Don Banks.
The NCB insisted on having a controlling 51 per cent interest in the overall acquisition, and the Canadian group was to take a 25 per cent stake in the investment and provide an experienced management team for the privatised airline.
After the Privatisation Agreement had been negotiated, control at the NCB changed hands and the NCB "bailed out", reducing its commitment from 51 per cent to 5 per cent. The Moo Young interests brought in Peter Rousseau - whom we had never previously met - as their new partner, and they collectively pressured us (the Canadian group) to increase the level of their investment which we were not prepared to do, especially with partners with whom we had no prior relationship.
We, the Canadian group, the group that was to have provided the aviation management expertise to the privatised airline, never wavered in our initial and final commitment to a 25 per cent financial interest in the privatised airline, but were not prepared to increase that commitment.
As a result, the privatisation deal would have failed owing to the "bail out" by the NCB and we, the Canadian group, agreed to a request by the Jamaican interests to withdraw from the group so that they could bring in Gordon Stewart, a successful hotel operator, as the controlling investor.
I trust that this sets the record straight that it was not the Canadian Group that "bailed out," but rather the NCB.
John Gilmore
Montreal, Quebec
Canada