JALPA still pressing for acquisition

Jamaica Airline Pilots Association (JALPA) on Tuesday attempted to rally the Diaspora in a last ditch effort to purchase Air Jamaica from the Jamaican government.

The group’s Acquisition Team representative, Captain Maria Haddad, Air Jamaica’s first female pilot, sought the support of the Jamaicans at a town hall meeting at Lauderdale Lakes, where the consensus was that Air Jamaica should be sold to a Jamaican entity.

But, the Bruce Golding-led administration, which has not considered JALPA’s attempt to purchase the Air Jamaica and is currently in negotiations with Trinidad-owned Caribbean Airlines, is intent on closing the airline very soon.

In an address to the Jamaican parliament last week, Prime Minister Golding announced that his government would be allocating $27 billion in the 2010/2011 Budget to cover the cost of the administration’s existing responsibilities for Air Jamaica.

Golding said he was hopeful that the divestment arrangements would be secured before the current financial year ends on March 31. However, if this fails, the arrangements for the airline’s closure would “be triggered by April 1, 2010”.

Signs already indicate that the government is winding down its operation of the airline. Several routes are to be dropped by early March; leased planes are to be returned; the booking office in New Kingston, Jamaica, is being closed; and notice has been served that the airline’s corporate offices on Harbour Street, Kingston are being sold. Proceeds of the sale of the airline’s assets will help to fund its operations until it is closed, which indications suggest would be by the end of June.

Exclusive rights for Caribbean Airlines

Reports are that a non-binding Letter-of-Intent was signed on January 22, by the Government of Jamaica, Air Jamaica Limited, Air Jamaica Holdings Limited and Caribbean Airlines, in which the parties made a commitment to sign a legally binding agreement by March 31. This agreement, if signed, means that the Jamaican government would cease operations of Air Jamaica before July 31.

On the cessation of the operations of Air Jamaica, Caribbean Airlines would begin its Jamaican operations, and given rights as the exclusive national carrier of Jamaica.

The issue of Air Jamaica’s sale to Caribbean Airlines has given rise to strong controversy in Jamaica. Golding has indicated that the government’s negotiations with the Trinidadians are well advanced, and that he will report on the outcome at a later date, but most Jamaicans are still hoping that the airline will be sold to a Jamaican entity.

JALPA may start new airline

The prime minister made no mention of JALPA’s application in his address to parliament, except to say the government understands the emotions of Jamaicans concerning the future of Air Jamaica, and the pride that the airline evokes. According to Golding, “Pride has come at a huge cost – $126 billion over the last 40 years, including $31 billion over the last three years. We have to get our priorities right.”

However, until the agreement with Caribbean Airlines is finalized, the Air Jamaica Acquisition Team still intends to push their case for consideration of their application, which Golding said was submitted after the due date.

The team held a news conference in Jamaica on Monday, and its spokespersons said they intend to pressure the government into considering their application.

Captain John Ayre, Air Jamaica’s manager – training and standards, told the Jamaican media that while the team continues to lobby with the government, there is also a secondary plan which involves the JALPA and Air Jamaica staffers considering starting up a new airline. But, such an operation would be almost impossible since the government offered Caribbean Airlines exclusive national carrier rights.

Another spokesman, Captain Russell Capelton said based on its business plan, the staff and pilots could make the airline profitable within two years. Capelton said the “avowed intent” of the team in operating the airline, is profitability.

In his speech to Parliament, Golding said the Air Jamaica brand would be retained, even if the airline is divested to a foreign owner; and the popular Fort Lauderdale, New York, Philadelphia, Toronto and Baltimore routes will be kept.