CAL to take over Air Jamaica by July 1, become Jamaica's official carrier

The Government of Jamaica has agreed to make Caribbean Airlines (CAL) its exclusive national carrier under an air services agreements between Jamaica and Trinidad and Tobago.

The designation is part of a non-binding letter of intent signed on January 22 by the Jamaica Government, Air Jamaica Limited, Air Jamaica Holdings Limited and the Trinidad and Tobago carrier, Caribbean Airlines.

The agreement commits the parties to sign legally binding agreements by March 31. This would lead to Air Jamaica ceasing its operations on or before July 1, and as soon as possible thereafter to shut down the airline.

That would clear the way for Caribbean Airlines to begin its Jamaican operations.
According to an official statement, once Air Jamaica is closed and CAL takes over its operations, the Jamaican government would designate CAL "the exclusive national carrier of Jamaica...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".

Before it ceases 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.

Air Jamaica operates in the U.S., Canada, Cuba, The Bahamas and Curaçao, serving 13 routes. It carried 1.1 million passengers last year.

When CAL takes over the Air Jamaica operations it would start up a network of routes to add to its international network.
CAL's Air Jamiaca operations will use between five and seven aircraft and the necessary crew to handle the service.

CAL will have "absolute discretion in the selection and recruitment of any Air Jamaica employees under new contractual arrangements. CAL will also honour airline tickets bought on Air Jamaica for the Jamaican operation at the time of the closing of Air Jamaica.

That part of the deal commits the Government of Jamaica to pay CAL an amount equal to 93 per cent of the passenger fare value of the Air Jamaica ticket fares.
The Government of Jamaica will appoint one director to the board of Caribbean Airlines.