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Jamaica issues deadline to CAL on use of Air Jamaica brand

Last month, Trinidad and Tobago’s Finance Minister Larry Howai said CAL had recorded losses estimated at US$70 million last year. Photo: Caribbean360
Caribbean 360

KINGSTON, Jamaica – Jamaica has given the new board of the Trinidad-based Caribbean Airlines (CAL) a month to indicate how it intends to use the Air Jamaica brand in the future.

Transport Minister Dr. Omar Davies Tuesday met with a high level delegation from Trinidad and Tobago that included Trade Minister Vasant Bharath and CAL board members to discuss the airline’s Jamaican operations and its arrears to local entities including the Customs Department and the Airports Authority of Jamaica.

The meeting also discussed the status of the Air Jamaica brand amid reports that the Portia Simpson Miller administration had threatened to withdraw the Air Jamaica brand from CAL in the wake of a recent decision to cut back on the number of flights to Jamaica.

“We discussed the reduction in the number of flights between North America and Jamaica and the way forward,” Davies said, adding “related to that was the continuing use of the Air Jamaica brand name”.

Davies said that the new CAL board, which came into office last month, had been “given a month to come back to us with a specific development in terms of the way forward”.

With regards to CAL's debt to Jamaican entities, it was agreed that the airline will in the future remain within agreed credit limits and Davis said that during the high-level meeting, complaints regarding the hiring of Jamaican employees by Caribbean Airlines were placed before the Trinidadian officials.

In April, Davies said he was concerned about what he cited as the “discriminatory hiring practices” of CAL after 15 flight attendants’ positions were cut at the airline's Jamaican operations and some Jamaican pilots, based in Trinidad were sent home in March.

The opposition Jamaica Labour Party (JLP) had also raised concern about the reduction in flights, saying the decision is contrary to the deal, which was reached for the airline to acquire Air Jamaica.

“We discussed the issue of the hiring of Jamaican pilots by CAL. We have agreed work plans on the way forward,” Davies said after the meeting here on Tuesday.

In 2010, Port of Spain and Kingston agreed to a deal that allowed the Jamaica government to own 16 per cent of CAL as part of the conditions for CAL taking over the lucrative routes of Air Jamaica.

The deal also allows for Trinidad and Tobago agreeing to a US$300 million transition plan for CAL to acquire and operate six Air Jamaica aircraft and eight of its routes.

When it came to office following the May 24, 2010 general election, the coalition government of Prime Minister Persad Bissessar said it would review the accord, but then finance minister Dookeran later announced that the government was okay with the agreement.

When he signed the agreement with his then counterpart Audley Shaw in 2011, Dookeran said Caribbean Airline would now “have legal access to all the routes that were being flown by Air Jamaica, giving it an opportunity to expand in the global arena”.

Last month, Trinidad and Tobago’s Finance Minister Larry Howai said CAL had recorded losses estimated at US$70 million last year. He said the figure does not include the US$40 million in fuel subsidy to the airline even though he insists that the airline remains solvent.

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