Foreign creditors hound Air Jamaica

[evanovitch]

Thursday, 19 February 2009

The national airline, Air Jamaica is battling to stave off angry foreign creditors who are hounding the carrier for millions of US dollars in unpaid bills.

Air Jamaica's President and Chief Executive Officer, Bruce Nobles told a parliamentary committee hearing Wednesday that <span style="font-weight: bold">the airline has been scrambling to avert a total shut down as creditors are planning to seize assets including aircraft </span>if the bills are not settled.

It was another telling tale of an airline sinking deeper in money troubles.

Bruce Nobles admitted Wednesday that the airline has been working night and day to convince creditors not to move in and take away the airline's assets for lack of payment.

Mr. Nobles who was speaking at a meeting of Parliament's Public Administration and Appropriations committee that the creditors are angered by broken commitments that overdue monies would be paid.

&quot;We start getting almost daily threats to seize assets or shut the airline down a number of times...it has become a very challenging time...that situation still exists today, that hasn't mitigated at all, we are still in that same situation. Creditors are very concerned and in some cases are still taking action,&quot;

<span style="font-weight: bold">Mr. Nobles said that the Airline has been faced with a dramatic reduction in passenger loads </span>which has resulted in a fall off in revenue coupled with what he described as a very difficulty financing environment.

The Lovebirds's chief said the he has been eye-balling the anxious creditors with a view to regularising payments.

&quot;Quite frankly what we did was go to our creditors and said ‘look, we think we have a plan to fix this airline and make it profitable but it is going to take us a little time to work with you and we need your help because you will be better off with an airline that is profitable, or is breaking even, going forward and paying its bills rather than shutting us down,&quot; said Mr. Nobles.

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Air Jamaica to begin cutting staff



Thursday, 19 February 2009

Air Jamaica will begin cutting staff next week as it tries to restructure its operations.

As part of its new business plan, the airline will as of Thursday slash some of its routes.

Air Jamaica's CEO Bruce Nobles says the process has started with the airline offering voluntary severance packages.

&quot;the schedule goes into effect next Thursday on the 26th...and we will begin the process of reducing flying and therefore those places that are directly affected such as Miami, Atlanta, Grand Cayman and Los Angeles will all be affected with that schedule. We will have some of our employees in Jamaica who will be affected,&quot; said Mr. Nobles.

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Port of Kingston to be divested


Thursday, 19 February 2009
The Government has announced plans for the privatisation of the Port of Kingston.

Prime Minister Bruce Golding who made the disclosure on Wednesday said the government is of the view <span style="font-weight: bold">that the port would be better operated in private hands</span>.

He says guidelines are being put in place for the privatisation.

According to the Prime Minister, the Port of Kingston while being operated privately will still be able to support and conform to the broad national objectives of the country.

The Port Authority of Jamaica (PAJ) is currently the body responsible for overseeing the management of the facility which is used as a major transshipment port.

The Port has, in recent years, undergone major expansion as well as upgrading and modernizing of its transshipment facilities.