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January 14, 2008 |
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AIR JAMAICA: Four Major Airline Firms Offer to Buy Stake One of the four unnamed major airline firms is selected to take a stake in Air Jamaica within another year, Ingrid Brown, a Sunday Oberver writer, says. Don Wehby, minister without portfolio in the Ministry of Finance, told Sunday Observer that "The response from potential partners has been overwhelming, and there are some very serious partners with a lot of good plans and capital who we are speaking to now." According to Mr. Wehby, the government sought a partner that must: -- be major company with airline experience and had a huge capital to operate Air Jamaica, -- present a very clear plan of how they intend to increase the flow of tourists into Jamaica, and -- be willing to maintain the Air Jamaica brand on the aircraft. Mr. Wehby added that the firm, who would work with the government, would be determined by the best price, Sunday Observer relates. Report shows a new partner would be recognized and the divestment concluded by March 2009. "The idea is to not have Air Jamaica costing taxpayers any money by 2009, as the charge on this year's budget is close to $4 billion," Sunday Observer reports, citing Mr. Wehby. The Jamaica Labour Party (JLP) Government has committed to look for equity partnership deals to revitalize Air Jamaica. "The Government would retain part ownership of Air Jamaica, which would retain its name and its unique Jamaican characteristics and would continue to serve the routes that are significant to local travellers, tourism and the Jamaican Diaspora," the JLP said in a statement. Mr. Wehby disclosed that the government has been identifying an investment banker and an aeronautics specialist that would help in choosing the best company from the four short-listed offers, Sunday Observer says. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com/ -- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to on Air Jamaica permanently. * * * On July 21, 2006, Standard & Poor's Rating Services assigned B long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, is based on the government's unconditional guarantee of both principal and interest payments. * * * As reported in the Troubled Company Reporter-Latin America on June 12, 2007, Moody's Investors Service assigned a rating of B1 to Air Jamaica Limited's guaranteed senior unsecured notes. |
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