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Stabroek News

Government of Jamaica considers airline merger
published: Friday | December 8, 2006


DAVIES

Finance Minister, Dr. Omar Davies, says that the Government was willing to explore the possibility of Air Jamaica being part of a merger with Caribbean Airlines.

Dr. Davies made the comments while responding to Opposition Spokesman on Transport, Mike Henry, who, on Wednesday, at the special select committee appointed to examine the financial and operational state of Air Jamaica, had asked whether any serious efforts had been made to find out the practicality of a merger.

Mr. Henry's comments were in response to a Gleaner editorial, which he claimed implied that the management of Air Jamaica had dismissed the notion of a merger.

Dr. Omar Davies, however, stated that he had done his own investigations in CARICOM to find out whether any such study had been done to investigate the cost benefits of such a merger.

"In terms of the establishment of one regional airline, I don't know of any technical work that has been carried out," he said.

"I think that there is obviously scope for us to immediately explore it," he further added.

This he said was especially in light of the recently formed Trinidad-based Caribbean Airlines, which will start flying on January 1.

Caribbean Airlines emerged after the wounding up of the cash-strapped BWIA.

Possibility exists

Michael Conway, chief executive officer of Air Jamaica, also insisted that he had not rejected the possibility of a merger.

"I think the recent comments in today's (Wednesday's) Gleaner editorial seems to think that we dismissed it," he said. "I was merely pointing out that it has just been mostly a notion people have easily throw out, but (with) nothing to back it up."

- D.R.

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