BITU wants alternative plan if Air J's divestment fails

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bimjim
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BITU wants alternative plan if Air J's divestment fails

Unread post by bimjim » Wed Nov 19, 2008

http://www.jamaicaobserver.com/news/htm ... _FAILS.asp

BITU wants alternative plan if Air J's divestment fails
Tuesday, November 18, 2008

THE Bustamante Industrial Trade Union (BITU) has asked the management of Air Jamaica to develop an alternative plan, in case the divestment of the airline fails to materialise by next March.

In a letter last Thursday to the airline's president, Bruce Nobles, BITU President Kavan Gayle said an alternative plan was necessary to ensure that "Brand Air Jamaica" continues to fly, whether or not the divestment succeeds.
Gayle was reacting to recent reports quoting Nobles as stating that there is no back-up plan in case the divestment fails.

"Whilst the union understands the government's position that the airline in its present state must be divested, it is of great concern to us that if the divestment plan fails there is no real alternative," Gayle said.

"This union will readily state that a government should not be saddled with the responsibility of running an airline. However, we have always opined that the window between now and March 2009 is too minute to effectively ensure a successful divestment," he added.

Noble was, however, optimistic that the airline would be divested by March. He said that Air Jamaica was still in talks with several possible partners, and that the strategy was to identify and reach an agreement by early January, then go through due diligence and have the transaction by the end of March.

With Air Jamaica's losses this year expected to exceed last year's US$170 million, the government announced earlier this year that the airline would be divested by March 31, next year.

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