THE Government has given the nod for Air Jamaica and Virgin Atlantic to begin operating under the code-share agreement signed between the British-based airline and the previous administration earlier this year.

The green light was given at a meeting with Virgin Atlantic boss Richard Branson and Prime Minister Bruce Golding on Wednesday morning, a day after the airline arrived in Jamaica for its inaugural flight from Gatwick to Kingston.

Branson, speaking from his office in London, told the Observer that as of next week Air Jamaica and Virgin Atlantic would begin operating under the new code-share agreement.

The Virgin boss said the prime minister, at the meeting, pledged to honour all contracts reached between Virgin and the former People’s National Party administration earlier this year. This includes the sale of Air Jamaica’s Heathrow slot which Virgin purchased in June.

“I felt very positive about the meeting with the prime minister,” Branson said.

Transport Minister Mike Henry, who had publicly expressed concerns about the code-share agreement and the sale of the Heathrow slot, had initially declined invitations to attend two functions to welcome Virgin’s inaugural flight to Kingston.

However, Henry seemingly had a change of mind when he attended a luncheon at Goldeneye in Ocho Rios in honour of Branson and the Virgin flight.

Branson said his company would also be looking at working closely with Air Jamaica to get the company out of its financial debts.

“We will be working closely with Air J to get as many people coming to Jamaica as possible to fill up the hotels and restaurants and help the economy of the country which we are determined to do,” said the billionaire airline boss.

He said he would also be very happy to provide the necessary expertise that Air Jamaica required.

“We could send some of our people in to see if we can help to work together to strengthen the company,” said Branson.

In May, Air Jamaica announced that it would discontinue its service to London, effective October 28, and enter into a code-share agreement with Virgin Atlantic under which the Air Jamaica code would be placed on all Virgin Atlantic flights between Jamaica and London Gatwick.

On June 1 of this year, then finance minister Dr Omar Davies announced that Jamaica had earned £5.1 million (US$10.2 million) from the sale, but said that the deal was still being negotiated.

Davies said that Air Jamaica lost US$27 million on the London route in 2006, and that projections were that the figure would have exceeded US$30 million in 2007.