CARIBBEAN Airlines Limited (CAL) Friday dismissed a rumour that its entire Board of directors had resigned, noting instead that the directors had not made any decision other than to terminate former chief executive officer Captain Ian Brunton earlier this month.

In a release issued yesterday the airline said Brunton was terminated for issues which arose unrelated to an issue involving the purchase of new aircraft.

The tension is said to have developed on differences about policy direction for the Trinidad-based Caribbean Airlines among them the recent acquisition of Air Jamaica as well as the purchase of nine new turbo prop aircraft at a cost of US$200 million from European manufacturer ATR.

The board however did not support the purchase of the new aircraft.

“There is absolutely no truth that the board has resigned. The entire board including its chairman is still in place,” Laura Asbjornsen Head of CAL’s Corporate Communications told the Business Observer via telephone from Trinidad.

According to CAL, the board has not stopped the purchase of the ATRs, but has only asked the Attorney General for an expert opinion to be provided. The board further noted that it has not acted against government policy nor gone against any Cabinet decisions.

“The current ATR deposit is not in danger of being lost since no one on the board has communicated to ATR that the agreement will not be signed,” the airline stated.

Meanwhile Brunton’s lawyers had written to Caribbean Airlines asking it to show that the board met to dismiss their client and that it was not a unilateral decision which they allege is unlawful and improper.

The attorneys requested that the board recant its decision and return Brunton as CEO of the airline.

But yesterday CAL said the board acted within their authority to sack Brunton and in doing so has not contravened any accepted corporate governance principles.

It noted further that the board requires industry expert advice prior to spending the estimated $1.3-$2.7 billion dollars of Trinidad’s money at this time.

“This is a reasonable development congruent with the development of the state of our corporate governance and economic growth. The board maintains that it has acted prudently in this matter,” the release stated.

Caribbean Airlines recently acquired routes operated by Air Jamaica following its acquisition of Jamaica’s former national carrier.