By Andrew Green, Staff Reporter 
Gordon 'Butch' Stewart (left), former chairman of Air Jamaica converses with Aubyn Hill (right), who now heads the Reconstructuring Office at the airline. Participating in the conversation is Christopher Zacca (centre), former chief executive officer of Air Jamaica. They were attending a press conference hosted yesterday by the minister of finance to announce changes in the ownership structure of the national carrier. - Rudolph Brown/ Chief Photographer
THE GORDON 'Butch' Stewart-led Air Jamaica Acquisition Group (AJAG) yesterday signed over its 75 per cent ownership share back to the government, bringing the national airline back under state ownership after a 10-year hiatus.
In addition, the AJAG group has agreed to pump US$20 million into the airline, with the Government putting up an additional US$25 million in credit, so as to give the transition period a much-needed push-start.
"The Government of Jamaica will assume full responsibility for management and operation of the airline," Finance and Planning Minister, Dr. Omar Davies told a packed conference room during the handover ceremony at his Heroes Circle office in Kingston.
The move will also see all the members of the AJAG group, including Mr. Stewart, and the airline's Chief Executive Officer Christopher Zacca, resigning with immediate effect. Air Jamaica has lost more than US$560 million since its privatisation in 1994.
"The airline has been virtually insolvent for a number of years," said the newly-appointed executive chairman and head of the Urban Development Corporation (UDC) Dr. Vincent Lawrence. He added that the airline had come to rely heavily on financial support from government and had been unable to maintain regular debt repayments due to its high level of losses.
The flamboyant Mr. Stewart, for his part, couldn't resist expressing relief of ridding himself of what had clearly become an albatross on his back. "We had to give back the airline," he said. "We leave Air Jamaica, I must tell you, happily, because we feel a burden has come off our shoulders that we couldn't afford."
Dr. Davies told journalists in a private session that the Government wanted to cap the losses of the airline at US$30 million. The audited accounts of the airline will be presented in parliament and made public, he said. The losses incurred by the airline are now known to stand well above US$50 million for the year.
"All stakeholders, management, crew, ground staff, creditors, suppliers and government will have to make significant sacrifices and adjustments as we seek to bring viability and competitive market arrangements to the airline," Mr. Lawrence said. He added that Mr. Aubyn Hill had been appointed to carry out the necessary restructuring.
The new executive chairman said Air Jamaica's operations will continue during the restructuring and "all schedules, ticket purchases, agreements with travel agents and other partners are valid and will be honoured."
The new interim board has been appointed for an initial six-month period lasting to June 30, 2005, Dr. Davies said. "Our objective is to restructure the entity such that it will be able to attract adequate equity capital from private investors."
In addition to Mr. Lawrence and Mr. Hill, the new board of directors includes Bank of Jamaica governor, Derick Latibeaudiere; Jamaica Tourist Board executive director Paul Pennicooke; Accountant General Millicent Hughes; Keith Senior; O.K. Melhado; Noel Sloley and Noel Hylton, president of the Port Authority of Jamaica.
