Air Jamaica may return to Grand Cayman
(CNS): According to reports in the Jamaican Gleaner this weekend, Air Jamaica maybe considering reintroducing its Kingston to Grand Cayman and Kingston to Nassau routes. Chairman of Caribbean Airlines, Arthur Lok Jack, told journalists that during the transition period Air Jamaica would be flying eight routes to the United States and Canada as well as the Cayman Islands and the Bahamas. However, Air Jamaica chief executive officer Bruce Nobles told another reporter that it would be premature to say the local carrier will be returning to Cayman in the foreseeable future.
The Gleaner reports that Nobles said Air Jamaica would continue to fly on its existing routes but would be reviewing the possibility of adding other destinations.
Effective 1 May, Caribbean Airlines has taken over full financial responsibility for the Air Jamaica operations. The government of Trinidad and Tobago has provided US$50 million to fully capitalise the transition arrangements. The government of Jamaica is providing US$19 million to cover the pre-purchase of Air Jamaica tickets by passengers made prior to the handover to CAL for travel on Air Jamaica flights after 1 May.
Lok Jack has indicated thatCaribbean Airlines expects to make an immediate return on its investment of about US$12 million to US$15 million per annum, starting in 2011. He believes that the transition period should last for three to six months.
Meanwhile, Air Jamaica Limited has obtained a 60-day and 90-day temporary waiver from the United States and Canadian transportation authorities, respectively, in relation to the ownership and control standards in their bilateral arrangements with Jamaica, which will allow Air Jamaica to continue flying as the Jamaican national carrier.
Category: Business
