Sell Air Jamaica now!

Coming under massive pressure from the International Monetary Fund (IMF) the Jamaica government is scrambling to ink a deal for the sale of Air Jamaica, to meet IMF requirements.

It is widely known that privatizing the cash-strapped airline is one of the conditions under which the Jamaican government will receive a US $1.2 billion loan under the IMF Standby Facility. Failure to craft a deal on the Air Jamaica sale could risk further delay of the loan.

A deal with the Trinidad-based Caribbean Airlines from all accounts is not a matter of if, but when; and if the IMF has anything to say about it, it will have to be struck by the end of this week.

The IMF board said it will meet on Feb. 4 to discuss the island’s loan request.

However, there is controversy surrounding the sale of Jamaica’s national carrier, which, to many Jamaicans, home and abroad, is a source of pride. Part of that pride has spurred the Jamaica Airline Pilots Association (JALPA) to make an offer to the Government to purchase the airline, so it would still be in the hands of Jamaicans.

The government, which has little time to secure a deal, however, has said JALPA’s proposal would only be considered if a deal with Caribbean Airlines fails.

Prime Minister Bruce Golding, who was speaking at his radio program Jamaica House Live on Wednesday, said he received JALPA’s business plan and met with them. But he cautioned that the government would not be able to financially assist the purchaser of the airline once it has been sold.

A letter sent to Golding by the staff of Air Jamaica Holdings Limited on Monday urged the prime minister not to sell the airline to an overseas entity, but to give them the opportunity to manage it.

The letter said, “It is because of the passion, not merely to save jobs but one which stretches to the bloodline of our founding fathers that we dare to stand… hence we say let the divestment take place, but let JALPA, (Jamaica Airline Pilots Association) the representation of Air Jamaica’s staff and the Jamaican people take the reins.”

Despite cries from the Jamaican public for the airline to remain in Jamaican investors’ hands, and that the National Workers Union (NWU) said in a statement that is it against the sale to Caribbean Airlines, the government is faced with making the practical choice in its estimation. That, coupled with the push from the IMF, has placed the government in a difficult position – one that has no easy solutions, but need to be decided upon promptly.

NWU president, Vincent Morrison, said his union believes that the national carrier should be kept in the hands of the 1,900 workers who are adequately equipped to manage the airline.

“I can’t believe that the government would spend J$28 billion (US316.9 million) to give away one of our best assets,” Morrison said.

Air Jamaica Holdings Limited concurs, as they wrote in the letter, “Now is not the time for Jamaica to sell her birthright for a pound of flesh with or without blood. Now is a time for use as a people to arise, invest in ourselves, eat what we grow and own what we fly.”

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