Caribbean Airlines denies reports it plans to back out of deal to acquire Air Jamaica
Caribbean Airlines denied reports it plans to back out of its deal to acquire Air Jamaica, stating it plans to relaunch the Air Jamaica brand on 14-Jan-2011 under the theme "One Caribbean Airline, two brands" (Jamaica Observer/Breaking Travel News, 05-Jan-2011). The carrier added the remaining steps to finalise the transaction with the Jamaican Government will be completed this month. Caribbean Airlines reached an agreement with the government to acquire Air Jamaica last year, under which Caribbean stated it would commit USD50 million to the airline. It then took over Air Jamaica’s routes in May-2010. The reports Caribbean planned to back out of the deal came on news fuel subsidies offered to Air Jamaica by the Jamaican Government expired in Dec-2010. Caribbean now plans to nine of Air Jamaica’s older Airbus aircraft with new B737-800s from the end of Apr-2011.
Caribbean Airlines: “The board made no such suggestion, and it could not be further from the truth. To the contrary, the board — in keeping with the decision of the Government of Trinidad and Tobago — has indicated its commitment to the completion of the acquisition of the Air Jamaica routes,” Company Statement. Source: Jamaica Observer, 05-Jan-2011.