News from Our Region
Government steps in to help Air Jamaica
Air Jamaica
Chairman
Gordon 'Butch' Stewart
By Felicia Persaud
It's now become a case of 'Who's the Boss,' at the Jamaican national airline, Air Jamaica.
The Jamaican government announced last week Wednesday that it will assume a US$300 million debt incurred by the airline in exchange for an additional 20 percent interest in the carrier. Add to that a number of convertible preference shares which the Patterson administration currently holds in the airline, and the result is a new owner. Actually more like a return to the old owner since the government had privatized the carrier nine years ago.
"The deal will make government the owner of the airline," Finance Minister Mr. Omar Davies reiterated.
But it's now left to see whether Air Jamaica officials will accept the government's bailout offer, strings and all. The carrier's chairman, Mr. Gordon 'Butch' Stewart says there is no way he's handing control of the airline back to the government.
In a press release issued last Thursday, portions of which were carried by the Jamaica Gleaner, Mr. Stewart was adamant that "although the government will increase its stake in Air Jamaica, it will not take over the operation of the airline."
He said Minister's Davies' comments were completely misinterpreted.
When the deal is finalised, "Government will own 45 per cent of the shares and Air Jamaica Holdings will retain 55 per cent and the controlling interest," the statement said.
Still Mr. Stewart stressed that he is proud "to have the government as a more substantial partner in the national airline." Stewart, who has been called everything from the "king of all-inclusive resorts," to the "Cupid of the Caribbean," and the "master of marketing," refuses to plough more of his own money into the beleaguered carrier but is obviously bent on holding on to the helm of the airline.
It is now left to see whether the Jamaican government will settle for the deal being publicized by Air Jamaica or if it will back out of its offer to absorb the carrier's losses should management refuse to give up ownership.