Air Jamaica On The Auction Block
June 25, 2008 1 Comment
Continual financial losses, rescue plans and packages over recent years have led the Jamaica government to decided enough is enough. Air Jamaica has come full circle with the Golding administration placing it on the auction block ultimately into private hands after accumulated losses of $1 billion dollars, losing $100m yearly. The question is would the Jamaica government still have a stake in the airlines?. It would be a serious matter to be place at the mercy of foreign airlines who have slashed air seats to the region by 50%, rising oil prices and a volatile American economy which is one of the region largest markets.
The Jamaican Government has confirmed that it will have to absorb one billion US dollars in losses accumulated by the national airline.
The latest round of losses for Air Jamaica was disclosed Monday night by Prime Minister Bruce Golding.
The airline’s string of losses has resulted in the government now placing it on the auction block.
The airline has been a source of irritation for Jamaican tax payers at the end of each financial year.
Prime Minister Golding says Cabinet has approved plans to sell the cash strapped airline by March 31st next year.
He confirmed that after Air Jamaica is placed in private hands the country will be left with the huge task of clearing off its debts.
Source – BBCCaribbean.com
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