Air Jamaica and Caribbean Airlines implemented official transition plan on 1st May
To ensure a smooth transaction process during the formal takeover of Caribbean Airlines over Air Jamaica the two airlines had agreed on a deadline at the start of this month to start the official transition plans.
The official takeover of Caribbean Airlines over Air Jamaica was due on 1st May this May with the implementation of a transition plan to guarantee a smooth transaction which will see the Jamaican lovebird continuing its operations servicing the Jamaica holidays air market under agreements with the Trinidadian carrier.
Now all negotiations have been sealed and completes, the two airlines flying millions of passengers to Caribbean holidays were due to formally sign a number of agreements to cement the deal, the Chairman of Air Jamaica, Dennis Lalor informed when addressing journalists at a press conference at the airline's downtown Kingston head offices.
Part of the agreement is that the Jamaican Government will transfer Air Jamaica's routes to Caribbean Airlines, for a 16 % ownership in Caribbean Airlines. However, Mr. Lalor made it clear that, "the Government of Jamaica remains the owner of all of Air Jamaica's other assets, including its real estate assets and industrial assets." He also indicated that this deal was "superior" to what was contemplated with the other bidder in the divestment process.
Initial operations will see Caribbean Airlines continuing to serve routes for passengers booking their Jamaica holiday flights with Air J from: JFK to Montego Bay, JFK to Kingston, Baltimore to Montego Bay, Philadelphia to Montego Bay, Toronto to Kingston, Fort Lauderdale to Montego Bay, and Fort Lauderdale to Kingston. Plans for other routes are to be announced by Caribbean Airlines.
Overseeing the future of Jamaica holidays with the Jamaican carrier being in better and more capable hands, all of Air Jamaica's financial responsibilities will be turned over to Caribbean Airlines, which the Chairman said, "has the adequate financial strength to sustain their commitment to Jamaica."
In this regard, the Government of Trinidad and Tobago has agreed to increase Caribbean Airlines capital by US$50 million. This move, Lalor said, provides adequate assurance to the Divestment Committee that enough funding will be available for the project. Lalor also stressed that there will be no disruption to current services, as all tickets issued will be duly honoured. On the other hand US$9 million has been set aside to deal with refunds for advance ticket sales.
He was also quick to highlight that staff should face no economic disruptions during the transaction process, as the government has assured that the proper arrangements have been made to take care of statutory payments. The categories of workers who will be rehired by Caribbean Airlines include 200 flight crew, with the remainder being ground and maintenance crews.
On his part, Director of Caribbean Airlines, Shafeek Sultan-Kahn said certain criteria had been used to select staff who are to be rehired. In relation to the trade unions, Sultan-Khan said: "We have been criticised for not meeting with unions (but).it would be presumptuous of us to make any representation with the unions, for one simple reason - we have no workers as yet. Air Jamaica was still the employer until the 30th of April. We are in the process of making employment offers"
Talk to a specialist
Call 020 7644 1770 to speak with our award-winning travel consultants.
Opening hours 10:30 - 17:30 GMT
Popular Holidays Browse all
A resort where there is something for everyone
- FAMILY PACKAGES for a family of 2 adults & 2 kids below 12
- A fantastic all-inclusive programme with great the entertainment options including kids and teen club
- up to 2 children eat and stay for free
Stay at the luxurious Dreams resort with various benefits
- Enjoy moonlit themed parties, great music shows and outdoor cinema screenings on the beach
- A wide choice of a la carte themed restaurants and chic bars ensure there is something to suit everyone
- The Explorer's Kids Club has a fully supervised children's programme with various different activities
Use up to $2000 resort credit to indulge in spa treatments, golf sessions or a selection of excursions that will make your Cancun holiday truly unforgettable.
- Duran Duran in concert at Moon Palace on 29th December (tickets additional cost)
- Winner of the Trip Advisor 2015 Travellers Choice Award
- Enjoy the impressive $2000 Resort Credit per booking that you can spend on golf, spa treatments, dolphin swims, visit to Chichen Itza, Express Tour of Tulum, Family fun days out at the Wet 'N' Wild Waterpark and much more
- Whether you are looking for an active holiday or a relaxing break, Moon Palace Resort is an ideal destination for travellers of all ages
Ideal for trendy couples - stay at a chic and sleek hotel in the heart of vibrant Havana and then Stay next to Cuba's famous Varadero beach
- Blau Vardero offers something for everyone with as little or as much as you want to do on offer including a spa
- Virgin Atlantic Sale, huge reductions sale ends 15th Nov
- Exclusive Couples offer - Welcome Cocktail, 1 hour free Wifi Access in Havana plus a bottle of wine on arrival, 30-minute massage and a Romantic Dinner in Varadero
- Be swept away by the amazing views of Havana from Capri's rooftop pool
Combine exploring the old dimes of Havana with a refreshing beach retreat in Vardero on an unforgettable twin centre...
If you want to really feel Cuba's beating heart and pulsating rhythms, this is one of the best for an unforgettable...
Discover the cultural and historical treasures of Havana as you're treated to 5-star service at the Iberostar Parque...
Situated just minutes from the Bugibba promenade, Sunflower hotel enjoys an excellent location in the popular area of...
With a good location next to the city centre and the medina, this charming hotel will put you in close proximity to the...