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Report: Air Jamaica’s Transition to Caribbean Airlines DelayedApril 8, 2010 By: Joe Pike
The Jamaica Gleaner is reporting that the planned transition of Air Jamaica to Caribbean Airlines has been set back for 18 days, leaving the cash-strapped carrier in even more trouble.
With advanced booking down to a trickle as travelers adopt a wait-and-see posture, the airline could face serious cash-flow problems because of its failure to meet the April 12 deadline as scheduled, according to the report.
Employees of the airline, who also expected to get redundancy payments next Monday, will have to wait a while longer because of the delay, which has seen the start of the transition period shifted to April 30.
The transition is expected to last for six to 12 months before Caribbean Airlines takes full control of the profitable Air Jamaica routes.
Airline insiders yesterday told The Gleaner that the delay in finalizing the deal was linked to the Government's failure to secure an agreement with the United States Department of Transportation (DOT) for Air Jamaica to continue flying to that country during the transition period.
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