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April 8, 2008 |
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AIR JAMAICA: Loses US$171 Million in 2007 Air Jamaica has lost US$171 million in 2007, its largest loss ever, The Jamaica Observer reports, citing an "internal document." The Jamaica Observer relates that Air Jamaica had revenues of US$413.3 million, an interest subsidy of US$44.71 million, and a government grant of US$25.41 million in 2007. Air Jamaica lost some US$128.4 million in 2006, and in 2005 lost US$131.5 million, the report says, citing summary statistics from the airline's 2007 Eurobond offering document. An analyst told The Observer that the 2005 and 2006 losses "would most likely be adjusted upwards to reflect government grants of US$27.7 million in 2006 and approximately US$21 million in 2005." 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 own Air Jamaica permanently. * * * 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. On July 21, 2006, Standard & Poor's Rating Services assigned a "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, based on the government's unconditional guarantee of both principal and interest payments. |
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