From left Hill, Lawrence, Stewart.
Andrew Green, Staff Reporter
FINANCE MINISTER Dr. Omar Davies is expected to announce changes to the ownership and management structure of the cash-strapped Air Jamaica at a press conference today.
This follows weeks of public debate about the financial future of the national airline, and whether the government would move in
yet again to give it a much needed bailout.
Dr. Davies will outline the decisions taken following ongoing negotiations between the Gordon 'Butch' Stewart-led Air Jamaica Acquisition Group (AJAG) and government.
A call to the Air Jamaica headquarters in downtown Kingston yesterday revealed that a management changeover was already in the making. The Gleaner has learnt that not only will former National Commercial Bank (NCB) Managing Director, Aubyn Hill, replace Chris Zacca as the airline's chief executive officer, but that he had already taken over his office from earlier this week. Mr. Hill's secretary said he
was in a meeting and could not immediately return a call.
INTERIM CHAIRMAN
In a further development, The Gleaner has also been informed that head of the Urban Develop-ment Corporation (UDC) and Air Jamaica board member, Dr. Vin Lawrence, will take over as interim chairman, replacing Mr. Stewart.
"As at this point in time, Chris Zacca is the chief executive officer of Air Jamaica, and 'Butch' Stewart is its chairman," Leo Lambert, group communications director for Mr. Stewart's Sandals organisation said yesterday in response to queries. He said the fact that Mr. Hill was in Mr. Zacca's office did not change the facts. Efforts to contact Dr. Lawrence last night were unsuccessful.
It was revealed in the Senate in November that Air Jamaica had lost more than J$34 billion since its privatisation in 1994 and was also carrying a debt burden of almost J$42 billion. Of this amount, $8.5 billion is owed to the government.
LOSSES
The airline has been running up losses since it was privatised and there have been various plans announced to put it on a path to profitability. In October, Mr. Zacca disclosed that AJAG and the government were to sign an agreement which would see the conversion of J$6.62 billion of taxes and fees converted into equity in the airline.
The Government, Mr. Zacca said, should provide another J$1.8 billion a year of support in exchange for payment of ongoing taxes. The end result of these negotiations, he said, would be an increase in government's stake in the airline by 20 per cent to 45 per cent, with AJAG reducing its holding to 55 per cent.
Such a proposal was first broached by Finance Minister Dr. Omar Davies in July of 2000, when he said the government was to increase its stake in the national carrier to 45 per cent.
