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CAL and JM sign formal merger

27-May-2011 11:37 AM

Caribbean Airlines and Air Jamaica announced the agreement representing the formal merger of the two carriers was signed on 26-May-2011 (nationnews.com/go-jamiaca.com, 26-May-2011). Under the agreement, the Jamaica government will own 16% of the Trinidad-based CAL while Port of Spain will spend an estimated USD49.2 million to facilitate expansion of CAL, which took over five of Air Jamaica’s routes in 2010. In Apr-2010, the Bruce Golding government assumed all financial liabilities up to the end of that month for Air Jamaica with CAL assuming the financial risk of continuing Air Jamaica’s activities from 01-May-2011.