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Air Jamaica bidder files for bankruptcy
Wednesday, 10 June 2009
The parent company of a British firm said to be one of the bidders for the national airline Air Jamaica has collapsed.
It is unclear whether the failure of the German-based conglomerate will have implications for the airline's divestment.
The company- Arcandor- owns 53% of international travel company Thomas Cook which has reportedly submitted a bid to acquire Air Jamaica.
Arcandor filed for bankruptcy protection after the German government rejected a request for loan guarantees.
Thomas Cook on Tuesday moved quickly to reassure its customers that it would not be affected by the problems at Arcandor.
Thomas Cook said it was completely ring-fenced from Arcandor and the two companies were operationally and financially distinct.
And Finance Minister Audley Shaw has provided an explanation for the reduction in the number of bidders for Air Jamaica.
Initially three entities had expressed an interest in the air carrier.
However, last month Minister with responsibility for Air Jamaica's divestment, Senator Don Wehby confirmed that only two bids were being considered.
Speaking in Parliament on Tuesday Mr. Shaw said the third bidder was eliminated as it was only interested in a management contract with the airline.
The Finance Minister said he was confident that one of the remaining bidders would be selected to purchase Air Jamaica.
"As of now we are confident that the two are companies with whom we are very, very serious stages of dialogue, it is now a question of nuts and bolts, the dotting of the I's, crossing of the T's in terms of pinning down all the specifics of both proposals," Mr. Shaw said.
And more than 100 workers positions have been cut from Air Jamaica since it commenced its restructuring exercise.
Mr. Shaw says this has helped the cash strapped airline to reduce its operational expenses.
"There has been a downsizing of staff; some of it has been based on voluntary job cuts, 151 members of staff, 40 involuntary separations have also been effected in overseas locations," said Mr. Shaw.
Last month Air Jamaica recorded a modest operational profit for the first time in several years.
Wednesday, 10 June 2009
The parent company of a British firm said to be one of the bidders for the national airline Air Jamaica has collapsed.
It is unclear whether the failure of the German-based conglomerate will have implications for the airline's divestment.
The company- Arcandor- owns 53% of international travel company Thomas Cook which has reportedly submitted a bid to acquire Air Jamaica.
Arcandor filed for bankruptcy protection after the German government rejected a request for loan guarantees.
Thomas Cook on Tuesday moved quickly to reassure its customers that it would not be affected by the problems at Arcandor.
Thomas Cook said it was completely ring-fenced from Arcandor and the two companies were operationally and financially distinct.
And Finance Minister Audley Shaw has provided an explanation for the reduction in the number of bidders for Air Jamaica.
Initially three entities had expressed an interest in the air carrier.
However, last month Minister with responsibility for Air Jamaica's divestment, Senator Don Wehby confirmed that only two bids were being considered.
Speaking in Parliament on Tuesday Mr. Shaw said the third bidder was eliminated as it was only interested in a management contract with the airline.
The Finance Minister said he was confident that one of the remaining bidders would be selected to purchase Air Jamaica.
"As of now we are confident that the two are companies with whom we are very, very serious stages of dialogue, it is now a question of nuts and bolts, the dotting of the I's, crossing of the T's in terms of pinning down all the specifics of both proposals," Mr. Shaw said.
And more than 100 workers positions have been cut from Air Jamaica since it commenced its restructuring exercise.
Mr. Shaw says this has helped the cash strapped airline to reduce its operational expenses.
"There has been a downsizing of staff; some of it has been based on voluntary job cuts, 151 members of staff, 40 involuntary separations have also been effected in overseas locations," said Mr. Shaw.
Last month Air Jamaica recorded a modest operational profit for the first time in several years.
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