Government has no more queries about the merger between Caribbean Airlines Ltd (CAL) and Air Jamaica Ltd.
Finance Minister Winston Dookeran said the deal, which closed on May 1, 2010, would give the airline an opportunity to expand. "There are a number of issues that must be corrected, but fundamentally, the Air Jamaica deal is a good deal. "It is the purchasing of the revenue stream of Air Jamaica that gives Caribbean Airlines the opportunity to expand its space in the world aviation industry," Dookeran said. He was delivering the feature address at Wednesday's launch of a business forum, hosted by the Greater Tunapuna Chamber of Industry and Commerce, which was held at the Centre of Excellence, Macoya. At the June 10 post-Cabinet press conference, Dookeran said a three-member appraisal team was appointed to assess plans for Air Jamaica to continue its current operations. The team, headed by Conrad Aleong, former BWIA chief executive officer, comprised Krishna Boodhai, accountant, and Selby Wilson, former finance minister.
Dookeran on Wednesday said the team submitted its report, which was presented to Cabinet. Prime Minister, Kamla Persad-Bissessar speaking with reporters at the first regular meeting of the conference of heads of government of the Caribbean Community in Montego Bay, Jamaica, said her Government had reservations about the transparency of the agreement: "We had no input, had no information, except for what we received from the media." Dookeran said there are issues that must be dealt with when it comes to the subsidy programme. "There are certain issues with respect to the subsidy programme which we are dealing with and which we will deal with–the fuel subsidy programme. The strategic direction has been in the right way," Dookeran said. He said in years to come, "CAL can start to take off."
Further talks are to take place on a way forward for the airline, but he explained it is "a hostile world" where competition is swift. "The benefits of having an airline are greater than not having one at all. The cost of keeping it through the fuel subsidy must be weighed against not having one at all. "What you have to do is move to keep the airline at least on a breakeven position, and reap the benefits without any Treasury cost. That is the goal we'll set for them. When we start to process, it would be with a clear mandate and a clear target," Dookeran said. He said Brazil is an ideal opportunity for CAL to expand its routes to.
"The target will be with a desire to expand our reach beyond the Caribbean region, including the wider Caribbean region and perhaps looking south towards Brazil where there are expanding markets and increasing opportunities that are happening at a remarkable rate," Dookeran said. Dookeran said he was so far pleased with the work of the CAL board and there was no need to change the board members. He said, though, that CAL board members' mandate needs to change.