Bombardier deal off, but CA still looking for private jet

Caribbean Airlines (CA) has cancelled a proposed deal with Canadian aircraft manufacturer, Bombardier but the airline also confirmed that it is not giving up on buying an executive jet. CA chairman Arthur Lok Jack reiterated that the airline will continue to explore opportunities to establish the executive jet service.

Works and Transport Minister Colm Imbert also confirmed that the deal was off, noting that it happened because of an anti-corruption clause that the government was demanding as part of the purchase agreement.

Imbert blamed Bombardier and insisted that government did not back down on the controversial deal. But he said the delay gives both the state and the airline some time to reflect on "the best possible solution" for the jet service.

Bombardier's international business operations are governed by Canadian laws, which have clear and explicit guidelines on dealing with foreign officials to ensure that there is no kind of kickback or corrupt dealings.

With such legal protection, Bombardier likely didn't consider any additional clause necessary in concluding any deal for the purchase of an aircraft.

Read related story: Canadian law has "clause to prevent kickbacks.

Bombardier has dealings with governments and private corporations all over the world and its business runs into billions of US dollars annually, so the loss of the the Trinidad and Tobago contract is not significant.

It has been negotiating with the government of Trinidad and Tobago for contracts on the billion-dollar light rail transit system. So far the government has not raised any kind of anti-corruption clause.

In its news release the airline "the parties have mutually agreed to withdraw from negotiations and Bombardier has released the aircraft for sale to another customer."

This means the government will be getting back its refundable deposit of US$500,000. Caribbean Airlines says it will return the money to government. Last week, Minister in the Ministry of Finance Mariano Browne said the government had advanced US$52million to the airline to buy the plane.

The airline said it still believes the service is a good one and it will "continue to explore opportunities to establish such an operation in one of the fastest-growing and most dynamic areas of civil aviation today...The presence of the anchor client—in this case the Government of T&T—remains central to the viability of any future venture."

Imbert is hoping that the economic downturn in the U.S. economy will present opportunities to find another executive jet suitable for the service at a bargain prices.

"The changing global environment has changed the market for executive jets. Therefore, it has given Government and CA an opportunity to re-examine this matter and work out the next approach," Imbert said.

He suggested that there might be several business options available ranging from lease to sub-lease or purchase.