Caribbean Airlines only taking over profitable Air Jamaica routes: Imbert

Works Minister Com Imbert has stated that there Caribbean Airlines (CAL) will not be merging with or taking over debt-ridden Air Jamaica.

He was responding to reports from Jamaica that CAL with take over the Jamaican carrier on April 12 and fund its transition.

JYOTI reported Thursday that an internal memo from the airline's President and Bruce Nobles that stated: "We are working with Caribbean (Airlines) towards a transaction date concurrent with our major schedule change on April 12, 2010...

"The current transition proposal is to continue to operate Air Jamaica utilising our existing fleet under contract to Caribbean Airlines for perhaps as long as one year."

Nobles said, "Caribbean Airlines will be financially responsible for the transition operation after the transaction date."

"A new company will be formed to hire the personnel required. Those employees will be hired under fixed-term contracts. The number of jobs required and the terms and conditions of employment are still being finalised,” he added.

Read the story: CAL taking over Air Jamaica April 12, will fund transition

Imbert said Air Jamaica will be shut down and CAL will take over its profitable routes to ensure Jamaica maintains its "tourism lifeline" with its major markets in North America and Europe.

However he insisted that Government is not taking over any of Air Jamaica’s debts, which is estimated at over TT$12 billion.

“We will be focusing on the profitable routes because our stipulation is that there should be a business emphasis on the deal, so the unprofitable routes will be dropped...

“We are now negotiating the acquisition of the route rights from Air Jamaica. These routes have value and it would cost a lot in marketing, business development, time and other issues if we were to develop them ourselves."

Imbert confirmed that from April 12, Air Jamaica will close and CAL will take over some routes.

"It will be a blow to close Air Jamaica down and not replace the airlift and ensure continuity and air transport for their tourism industry," Imbert said.

He added, "We are also aware that Air Jamaica has industrial relations issues pertaining to the closing of the airline and the Jamaican government is working on those issues and, hopefully, they will be resolved by the closure date as well."