By LUCIUS C. WHITE
The government seems committed to giving away Air Jamaica to foreigners. Bad as that may be, we are entitled to know how much it has cost Jamaica for them to carry out that process.
The records show that the Government of Jamaica in 2008 borrowed an amount of US$22 million for the purpose of “acquiring expert advice on the divestment of Air Jamaica.” Since that time, the public was informed that the Hon. Dennis Lalor was appointed chairman of the Air Jamaica Divestment Committee.
The Jamaica Airline Pilots’ Association has made an offer in response to the committee’s invitation for offers for Air Jamaica. They have complained of the contemptuous manner in which they were treated.
They were not even been afforded the dignity of an acknowledgement of their proposal. Since it is common knowledge that they were not flooded with offers, the lack of response must be classified as disrespectful and discriminatory. It certainly should not be from inadequate staffing.
With the “chicken feed” sum of US$22 million as funding it would be most unfortunate if there were no secretary who could acknowledge the sole offer that was received by the committee. The Minister of Agriculture and the Cabinet have stated that they received value for money in that sugar divestment deal even though the blunder in trying to give away the Petrojam Ethanol cost the Government US$2 million as payment to COINEX which were co-owners of the operation at the time when the decision was made.
Ineptitude, ignorance, arrogance — pick your choice of adjective, but a partner was not consulted while their assets were packaged and given away with the consent and approval of the minister in charge and the entire Cabinet. That was for sugar. Now it is time for Air Jamaica.
• How much, if any, is left of the US $22 million borrowed from IFC to be utilized to acquire EXPERT ADVICE?
• Who was paid how much to do what?
• Did we have to use borrowed US dollars to pay to be advised to give away Air Jamaica to a foreign entity?
• What is so repugnant and offensive in the workers’ offer that it cannot be looked at along with the EXPERT’S ADVICE?
• Is it not a fact that the workers’ proposal would relieve the government of the need to find US$27 million to settle redundancy entitlements?
• Could it be that the government have no need to factor that aspect of the proposal because they figure they can refuse to pay, consistent with their behavior in the observation of their obligation to other workers?
• Has Caribbean Airlines shown a profit since its inception?
• Is it properly capitalised?
• When the Jamaica Government gives away Air Jamaica for part ownership in Caribbean Airlines how much debt will we be taking on, if any?
• As part owners of Caribbean Airlines, will the Government of Jamaica be indemnified against debts or losses incurred by that entity, which will be operated by the major partner?
Is there any truth in the argument that the restructured Air Jamaica is operating at a operating profit and that the losses in its bottom line is the result of its historical debts?
• If the forgoing is true and the terms of divestment contemplated and so far projected to the country are that the government is prepared to give away Air Jamaica while taking responsibility for the debts, why give it to a foreign entity?
• If it is assumed that viability can be achieved by route rationalization and staff pruning do we have to put Air Jamaica in foreign hands to do what basic management should be capable of doing?
What has caused the US$22 million divestment advisors to fail to seek public reaction to participating in ownership of Air Jamaica?
• Where is the prospectus for public participation?
• It is a known fact that the Jamaican public, including those in the Diaspora, is very attached to Air Jamaica. Is it expecting too much of those involved to have invited Jamaican at home and abroad to participate financially in that piece of Jamaica that flies? Mind you, there is no need to restrict participation to Jamaican nationals. Very likely, innovative marketing could make regular flyers and many of our many times visitors find investing in the airline an attractive proposition. If an attempt was made to sell Air Jamaica, that seems to be a well-kept secret. Even as the deadline drawn by the IMF or promised by our government is fast approaching for the disposal of Air Jamaica, what is known of how the US$22 million was utilized?
Scandals are many and frequent in our country.
Air Jamaica divestment need not be added to the long list. Prompt, accurate and lucid answers to the questions raised could produce the transparency required and serve to enhance the reputation of the parties that had the responsibility to divest Air Jamaica. Of course, failure to respond or inadequate response could have the effect of tarnishing of reputations and add yet another scandal to the list.
How Jamaica’s interest will be better served by Air Jamaica being absorbed by and operated by the Trinidad government owned and operated Caribbean Airlines than it would be in the hands of Jamaicans?
Maybe, the Prime Minister, the Minister of Finance or the chairman of the Air Jamaica Divestment Committee will volunteer to enlighten the nation on. How can it be? HOW COME?






Well, our good government under one Mr Bruce Golding has signed a non-binding agreement which states:
Caribbean Airlines is to be designated the national carrier upon takeover of Air Jamaica.
A copy of a non-binding agreement signed between Jamaica and Caribbean Airlines shows that the government must designate the Trinidad-based carrier as Jamaica’s National Airline.
A Letter of Intent signed between Caribbean Airlines and the government on January 22 has set out clearly that the government’s best efforts are to get Air Jamaica divested by March 31 to the Trinidadians and completely wound up on or before July 1.
But for Jamaicans who are emotional about the national airline, there are some elements which will not go down well.
Chief among them is a stipulation that if Air Jamaica goes to Caribbean Airlines, the Lovebird will have to take steps to get Jamaicans to buy into Caribbean Airlines as the national carrier.
And for the government, that would mean ensuring that Caribbean Airlines is afforded all the privileges of a national carrier including that no steps should be taken to “materially discriminate” against the interests of Caribbean Airlines’ Jamaica operations.
Additionally, the government is expected to give the “national airline” status to Caribbean Airlines for as long as a minimum level of service is maintained in the country but there were no clear parameters as to what that minimum level of service is.
For all that, there seems to be very little in the deal for the government.
It is expected to get no less than a 10% stake in Caribbean Airlines, with no indications if capital injections of that proportion would have to be found if needed.
Also, no Air Jamaica liability can be transferred to Caribbean Airlines.
That must be absorbed by the government as Caribbean Airlines is not to be seen as a successor airline to the Lovebird.