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Business

Caribbean Airlines to be Jamaica's exclusive national carrier

Friday, February 19, 2010



THE Jamaican Government has agreed to ensure that Trinidadian company Caribbean Airlines (CA) is designated the exclusive national carrier of Jamaica under the air services agreements between itself and other territories.

This was stated in the non-binding letter of intent signed on January 22 by the Jamaican Government, Air Jamaica Ltd, Air Jamaica Holdings Ltd and Caribbean Airlines.

Under this agreement, the parties are committed to making best efforts to sign legally binding agreements by March 31.

In this regard, the GOJ and Air Jamaica will take all necessary steps to effect the cessation of operations of Air Jamaica on or before July 1, and as soon thereafter close Air Jamaica.

Caribbean Airlines will commence its Jamaican operations on or before July 1 upon the cessation of operations of Air Jamaica.

Effective as of the consummation of the closing, the Jamaican government has agreed that 'Caribbean Airlines shall be the exclusive national carrier of Jamaica and, in this regard, will not request designation of national carrier status for any other air carrier for as long as the Jamaican operations maintain a minimum level of service and meet certain other criteria, which in each case will be set forth in the definitive agreements'.

Prior to the cessation of operations, Air Jamaica will 'implement revenue management and communication measures as determined by Caribbean Airlines and reasonably acceptable to the Government of Jamaica in order to actively manage market share, enhance passenger loyalty to the national carrier, and help preserve the competitiveness of the launch of the Jamaican operations (of Caribbean Airlines)'.

For some time now Air Jamaica has flown to five destinations on 13 routes. The destinations being the United States, Canada, Cuba, The Bahamas and Curacao. Last year, the airline carried 1.1 million passengers on these routes. Those routes have now been reduced.

In Appendix I, attached to the letter of intent, Caribbean Airlines stated it would start up its Jamaican operations by adding a network of routes to its international network.

Caribbean Airlines will also operate a Kingston-Port of Spain-Georgetown (Guyana) route, one flight/seven days per week, but this route will not form part of the Jamaican operations.

In addition, Caribbean Airlines has indicated that possible intra-island flights between Kingston and Montego Bay are 'to be considered'.

For the initial Jamaican operations, it is estimated that the routes will be operated with 'five to seven aircraft with an estimated number of cockpit and crew, respectively, of 70 to 90 and 140 to 160'.

Caribbean Airlines will honour airline tickets bought on Air Jamaica on routes which will comprise the Jamaican operation and have not yet flown at the time of the closing of Air Jamaica. On or before the closing, 'the Government of Jamaica will pay to Caribbean Airlines an amount equal to 93 per cent of the passenger fare value of the Air Jamaica ticket fares.


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COMMENTS (25)

blandel witter
2/20/2010
This is what you get when people allow politicians to act as if they are untouchable. These guys are idiots they exspect us to fly on a national carrier thats not own or operated by jamaicians they better guess again.I use to fly with air jamaica even if it cost me more I will not fly on this disgrace of a national airline if they give me free tickets. personally I don't care who own it if it is not jamaicians don't class it as our national carrier it si just another airline like spirit AA delta ....I guess all the polticians will have space for all there free flights and I mean both parties. SHAME ON THEM....
Miriam Sherwood
2/20/2010
Marlon, do you know they are two other groups of Jamaicans who wants to start up an airline, and they cannot get off the ground due to red tape? shame
Miriam Sherwood
2/20/2010
Marlon, who drained air jamaica?
Miriam Sherwood
2/20/2010

This group is a petition group asking the government of Jamaica to allow Air Jamaica to stay in the hands of Jamaicans.
Visit our Website http://www.saveourairlinejamaica.info where we give up-to-date information on the status of Air Jamaica. You will also be given the opportunity to be a part of and own your airline.
Make a Pledge today and own a piece of Air Jamaica!
http://www.saveourairlinejamaica.info
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Roderick Spence
2/20/2010
Good day people,
Being of Jamaican and Trinidadian decent, it's sad to see black people hating against black people. It remaided me about slavery and the fight between house and yard slaves. Black people like yourself want to acquire Air J and you would rather give you money to the white man. If CA fails, and sell everything than JA will have absolutely nothing. Sprint, Jetblue etc, will rape you blind on airfares and no jamaican can do anything about. Aleast the Tricky dadian and them keep 75 percent of the staff.
Jah bless
Dennis Johnson
2/20/2010
based on the comments I have read and my following of this issue, it has nothing to with T&T and Trinidadians. It all has to do with the betrayal and hypocrasy of the current Jamaican govt.
So take heart Trinis - Jamaicans do not hate you or your country!
mark gordon
2/20/2010
spirit airline is my carrier
Jhovahn Gibbs
2/20/2010
Will not be going on that Airline.
Steve Desland
2/20/2010
It is indeed appalling that this should come to pass. And I am personally crushed by same. Subsequently, although I can say never, I definitely will go to significant lengths to avoid supporting this particular airline under the circumstances. I also do feel that a silent and probably not-so-silent revolt amongst us against this deal, will result in the boycott of this airline (I can’t even bring myself to say the name).
With that said, however, “we” have seen this coming for several years and have had the opportunity to do something about it, and simply did nothing to prevent it. So, in effect, we have ourselves to blame. We are full of talk and not action that requires solidarity among us and the sacrifice necessary to bring about said action. Maybe this is a sign, an event that will wake us up and galvanize us in an effort to take REAL action against not just deals and decisions such as this one, but other ill-conceived ones as well.
In closing, I just was to say that this, although seemingly a bad decision and a major problem for us, is ultimately a BIG opportunity for “us” to do “something.” What that “something” will be, is unsure, but we can certainly start looking into how we can build on something that is already in place, such as the fact that there is a semblance of a carrier framework as put forth by JALPA (Jamaica Airline Pilots Association). Yes, it would not necessarily need to be the “national” carrier, but it would be owned and operated by Jamaicans… ALL of us. And would possibly set the stage for a brand new resurgence of what will eventually become the new national carrier after “this” new airline realizes it’s not longer profitable to operate under the current circumstances.
Do I hear “Jamaican Airlines”; “Reggae Air” (which by the way would be a great way to promote two of our key national brands together, keeping the connection and ownership of Reggae with the Jamaica brand); and the list can go on for days, as you know how creative we can be.
So I say to my fellow Jamaicans and Jamaicans at heart, fear not, let’s make airline choices that reflect how we feel about this situation.
Change is a coming!
Start by sending the link to this article to everyone you know!
Stay tuned.
Desmond Nembhard
2/20/2010
Soooooo, lets see now,,,,,,,, I have Delta, Continental, Spirit, AirTran, (no, I DON"T fly American Airline), and JetBlue airlines to fly home with!!!!! EXCLUSIVE NATIONAL WHAT????? FOR WHOM????? Some body must have lost there bloody mind. If us sending some patties to Trinidad, such a HARD time was given for it to be accepted, Mr Golding and company have gone mad!!!!!!
Daidrill Fearon
2/20/2010
I am oh so disappointed in the government for this deal. I for one will be boycotting this intruder aka excuse for a national air carrier, and I hope that with a massive Jamaican boycott they will pull out of Jamaica and leave room for the Jamaica Pilots Association to create a new national airline that is authentically Jamaican as they have proposed. I agree with the person who said that Trinidad would not accept a national carrier that is Jamaican. We have sat and allowed the past and the current government to sell off every little piece of Jamaica and this needs to be the last straw, we need to let our voices be heard and show the Caribbean that we can unite to preserve what little identity we still have left. We need to unite and not fly on this new Airline, there are many other options to choose from and we absolutely must make our point maintain some national dignity.
Marlon J
2/20/2010
i don't think the Gov't wanted to sell Air J, it was a case of them having to. It was a requirment of IMF condition. Caught between a rock and hard place unpopular decisions are made to save big picture of Jamaica economy. CA was the 2nd placed bidder as mentioned in Trinidad parliment bu their MoF. Spirit was first placed but negotiations fell by the way side. Not sure of why the anger gainst T&T. If we owned a car and it was draining your pocket wouldn't u sell it, get something new and reliable in lieu of fixing it up, not knowing if it would break down again?
Marlon Davis
2/19/2010
I hate this government as a matter a fact we need a party that will put the people first and not them, I despise PNP and JLP.
I hope someone creates an Airline for Jamaica, no one should recognise this foreign airline as our national carrier.
Dumile Anderson
2/19/2010
Co-signs with Stephen Gunter. Jamaica has lost legacy and a symbol of nationalism, unity and pride.
Arthniel Scott
2/19/2010
There is no way in hell i'm ever going to set foot on that Trinidad plane on any of my future trips to Jamaica. This is a major sell out and one to a group of people who have nothing but contempt for the Jamaican people. Bruce Golding could have came up with better options, Mr Prime Minister i support you on all else but on this i'm utterly displeased..
Novlette Beckford
2/19/2010
I am extremely disappointed with government for this sale agreement with CA. I agree with you Stephen, Trinidad would never have Air Jamaica as their national carrier. All Jamaicans should boycott CA until it is no longer viable for them to be the national carrier. I will never support this decision and will definitely fly with other airlines.
Joel A. Simpson
2/19/2010
The hearts of the Jamaican diaspora will be indeed the key entity, in the merger of Air Jamaica and Caribbean Airlines. I after reading the above excerpt couldn't help but to break down in tears. The fact that what has always been considered "my airline, your airline, our JAMAICAN airline" will now be divested to those Trinidadian bigots! I'm utterly at a complete lost for words. As a die hard supporter of the Jamaican Government, always giving the JLP absolute legitimacy in their decisions, even when it adversely negatively affects my family and I, I just can't support this decision.

2/19/2010
Should this deal with Caribbean Airlines go thru – every Jamaican should show their outrage and boycott Caribbean Airlines. Use other options; Delta, Jet Blue, Spirit, Continental, American Airlines, etc…
It is obvious that PM Golding has failed us as a Patriotic Leader and should be removed from office for failing to protect the national assets of our land.
Wake Up Jamaica! Wake Up!

Duane Parkin
2/19/2010
I am extremely concerned about offering Caribbean Airlines intra-island flights between Kingston and Montego Bay, this will create a monopoly. Jamaica needs competition to improve the level of service provided, monopolies will not achieve this.

2/19/2010
Has the Gov. fully checked through the ICAO regulations about transfering the JM code to caribbean airlines, this Gov is going be embarressed through deal look out for it!
Stephen Gunter
2/19/2010
Is there anyone that thinks that Trinidadians would for a second tolerate the idea of a Jamaican owned National Carrier of Trinidad?
Of course they would not.
Why then would the government of Jamaica sell out in this manner?

Kipling Gibson
2/19/2010
I really do not know where to begin....I'm really surprise of this action..I think i better hurry up and buy something back home before it's all liquidated to outside influence...DAMN! I will never fly CA..I will fly spirit airlines...As much as I hate AA, i'll probably fly them before I fly CA..I'm so disappointed in the govt..very disappointed in Bruce sellout Golding. There had to be a way to keep this airline marginally profitable - somehow keep it afloat. Something must be done to keep somethings in the hands of Jamaicans. Soon or later we will own nothing have nothing and future generations will have nothing. These quick fixes will have negative long term effects on Jamaica. MAD - HEAD GONE right now..can't think straight!
kerr anthony phillip
2/19/2010
Another Part of Jamaica disappearing.Exclusive Rights ! Bad Bad Bad!. What if a wealthy set of Jamaicans can set up their (our) own airline from scratch . What happens then?
Fabian Campbell
2/19/2010
I sense many Jamaicans are going to boycott fling on Caribbean Airline if and when the took full ownership of AJ. I also sense CA are going to pull some route because of this boycott. This means more layoff of the remaining staff they hired from AJ. In the end CA will exit Jamaica. Sentiments and emotions plays a huge factor in what product we consume. I sense the Jamaican people emotion is tied up so much in AJ, they will shunned Caribbean Airline into closure in the long term because of this boycott. The saga continues.
Jay Brown
2/19/2010
I really do not have a problem with the Air Jamaica sale to Caribbean airlines, as we have been carrying around this dead weight for too long.
I however have a BIG problem with the Jamaican government decision to give them certain exclusive rights including that of national carriers status.
This effectively preludes any private business in Jamaica from starting up a airline with the intent of making it a national airline.
Who will determine the minimum acceptable standards that will be set for Caribbean Airlines operations in Jamaica.
We simply cannot trust the government to do that for us, as they always seem to find a way to sc#ew Jamaicans in their negotiations process and establishment of standards.
Just take a look at the Highway 2000 agreement, its a vulgar at it gets.

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