THE Jamaican Government wants to ensure that any takeover of its national airline will keep tourist-filled planes coming to its sunny shores. A possible acquisition of Air Jamaica by Trinidadian company Caribbean Airlines also includes lengthy negotiations about Air Jamaica employee contracts, flight schedules, and even route details, said sources close to the Trinidad & Tobago Government.

Details and a timeline for the negotiations have not been finalised.

Apparently in preliminary talks, Jamaica’s team was bargaining to keep routes and to keep planes coming to Jamaica as frequently as they do now, as a reduction in the number of flights to the island would affect Jamaica’s tourism industry.

In Jamaica’s Parliament last Thursday, Prime Minister Bruce Golding said: “The team I met with (last Wednesday in Trinidad) were fully authorised to pursue discussions and give us an indication as to what they propose. Caribbean Airlines has a vision of one Caribbean and one airline serving the entire Caribbean. We indicated that one Caribbean is wonderful but we are a tourist destination, tourism is a part of our lifeblood.”

About the actual deal one source close to the Trinidad and Tobago government said: “From the numbers now, it does not look impossible, but not a merger, it will be a complete takeover.”

The source said any takeover of Air Jamaica would also mean a complete structural reorganisation of the company.

Air Jamaica is said to have US$1.2 billion in accumulated losses.

BWIA minority shareholders spokesman Peter Permell said that with an acquisition of Air Jamaica, Government will be buying into a repeat of the BWIA situation which eventually ended in the company being dissolved.

Caribbean Airlines is the successor of BWIA, which was wrapped up in 2006.

Permell said, from the figures being bandied about, the losses at Air Jamaica were colossal and the Government is seeking out the deal when legal matters in relation to paying off shareholders of former BWIA are still unsettled. Lewis Hamlott formerly with Silverjet speaking with Caribbean Business Report from New York said: “The Jamaicans are caught between a rock and a hard place. Since Butch Stewart handed the airline back to the Government it has steadily gone down hill. What would a potential buyer be getting? A brand name but with what value? They have been trying to divest Air Jamaica for the better part of two years and they have been no takers. The Government may well expect a potential buyer to take on its huge debt but it is in no position to dictate terms. It has to be completely taken over and restructured.

“It seems unlikely that it will fetch anywhere near US$100 million. It has to now become part of a strong regional carrier with a good management team and adequate resources. I understand that the IMF is insisting that it be divested quickly and reports of Spirit flying to the rescue is nothing but a fairy tale. Caribbean Airlines seems to be the best possible deal and they had better grab it.”

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