The T&T government has been given a one-month ultimatum by Jamaica to give a clear outline on the way forward for the Air Jamaica brand.This is according to Jamaica's Minister of Transport, Works and Housing, Omar Davies, who met with T&T's Minister of Trade, Industry and Investments Vasant Bharath and officials of CAL in Kingston on Tuesday.The Air Jamaica brand is now under the control of T&T-owned Caribbean Airlines (CAL).A report on RJR News yesterday said Jamaicans had expressed concern about how their airline was being managed following a decision by CAL in April to reduce daily flights to Jamaica.
According to the report, the discussions centred on CAL's Jamaican operations, the airline's arrears to local entities, including the Customs Department and the Airports Authority of Jamaica, and other matters."We discussed the reduction in the number of flights between North America and Jamaica and the way forward," Davies said.Davies said the discussions related to the continuing use of the Air Jamaica brand name."We agreed for the new (CAL) board to be given a month to come back to us with a specific development in terms of the way forward," Davies said.
With respect to CAL's debt to Jamaican entities, it was agreed that the airline would in the future remain within agreed credit limits.Davies said the Jamaicans complained to the T&T delegation about the hiring of Jamaican employees by Caribbean Airlines."We discussed the issue of the hiring of Jamaican pilots and Jamaica by CAL and the conditions surrounding those hiring. We have agreed work plans on the way forward," Davies said.Contacted for comment yesterday, Bharath said government is committed to meeting the one-month ultimatum.
In an interview yesterday after returning home from the meeting with Davies on Tuesday. Chairman of CAL Phillip Marshall attended the meeting.Bharath said there was general consensus from Jamaica on how the airline would be able to recover lost routes. CAL discontinued services on certain routes recently for economic reasons. This has upset Jamaica. Bharath said those routes have been "taken over by Jet Blue and West Jet."They wanted to have a plan of action from Caribbean Airlines to resuscitate the routes, to get back customers, to re-engage the Jamaican diaspora and to make the airline profitable."He said Jamaica had a 16 per cent shareholding in CAL in exchange for the Jamaican routes lost when the agreement was established a few years ago.
Bharath said the issue of outstanding payments to the Jamaican Airports Authority, the Customs and Aviation Authorities "was also addressed. "We have committed to make those payments by the end of June," he said, adding that the cash flow problem affecting Air Jamaica will be resolved."Government has now put those funds back in Caribbean Airlines and so they will be able to pay their bills."Bharath said on the issue of hiring practices by CAL "we have been able to address those issues"."I have committed to speak with Minister George (National Security) regarding the quick granting of work permits for Jamaican pilots."Bharath said CAL will ensure "wherever the expertise lays–whether Jamaica or T&T–we will seek to utilize the best possible staff and not just staff from T&T."He said the meeting was very successful "and both parties walked away with a commitment to ensure the airline works."The Trade Minister said the meeting agreed to allow the CAL Board to establish two working teams–one in Jamaica and the other in T&T–to chart the way forward for the airline. He said the first meeting of the teams will take place in two weeks.
