The Jamaican government continues to negotiate with US investment firms Indigo Partners and Oaktree Capital over the sale of state-owned Air Jamaica, airline CEO Bruce Nobles tells ATI.
Indigo Partners and Oaktree Capital had reportedly placed a bid to buy the Kingston-based carrier earlier this year, but Air Jamaica had not previously confirmed either firms' involvement.
"Indigo will be the majority investor and is leading the discussions," he says, adding nothing has been finalised.
Both investment firms have stakes in low-cost carrier Spirit Airlines.
The Jamaican government has attempted to re-privatise Air Jamaica since 2008. Last year, Nobles was rehired with the task of divesting Air Jamaica after having served as carrier president and COO between June 2002 and March 2003.
Established in 1969, Air Jamaica was privatized in 1994 with the government retaining a 25% share in the company.
The government resumed full ownership of the airline in 2004. But in February 2008, Jamaican Prime Minister Bruce Golding said it was time to sell the airline because it costs the Caribbean country more than $100 million to maintain.
International Finance Corp was selected to handle the transaction, and the Jamaican government said it intended to retain a 20% stake in Air Jamaica.
Since the re-privatisation effort was announced, a former president of the Jamaica Airline Pilots Association (JALPA), Wesley Sampson, has formed Mayday Air Jamaica, which has asked the Jamaican government to sell the carrier to its employees at a 20% discount.
Source: Air Transport Intelligence news
