Jamaica's new government is considering privatising Air Jamaica as part of a reassessment of the struggling flag carrier following the resignation of chief executive Michael Conway.
The government appointed in November former Air Jamaica executive William Rogers as acting chief executive. Air Jamaica vice-president sales George deMercado says the government decided against appointing a permanent chief executive because it wants a new owner to select a chief should the carrier be sold: "If there was an investor in Air Jamaica you wouldn't want to have his hands tied."
DeMercado adds the newly elected government is now reviewing a restructuring proposal submitted by the carrier and is expected to decide on a new direction for Air Jamaica in early December. The government's finance ministry reportedly has already begun talking to investment bankers and carriers interested in buying a stake in the carrier and helping finance the restructuring.
Air Jamaica earlier this year exited the long-haul market as part of a strategy to focus on short- and medium-haul services, a decision deMercado does not expect will be reversed. He says it is looking to increase co-operation with other carriers in the Caribbean and is in codeshare talks with Antigua-based Liat. "We're all trying to work together to make sure we're successful in the long-term," he says. "I don't think you'll see a merger per se."
Source: Airline Business
