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Tuesday, 05 January 2010
More opposition is being raised in Trinidad to their government taking over Air Jamaica through the state owned Caribbean Airlines.
The reason for the opposition relates chiefly to what it is believed it will cost Caribbean Airlines to assume control of the Lovebird, even though no figure for either a takeover or capital injection to keep Air Jamaica running has been published.
But that has not stopped Trinidadians from expressing strong feelings against what is regarded as an impending deal with Air Jamaica.
There appears to be growing concern in the twin island republic that a takeover of Air Jamaica by their government will cost tax payers billions, while bringing no real benefit to regional travellers.
A Trinidad Guardian newspaper report urged their government to drop takeover talks.
The President of the Trinidad Travel Agents Association says based on what he has heard it sounds like the Trinidad government would be spending taxpayers' money on the airline rather than the Jamaican government.
At present Air Jamaica loses about US$10 million per month and needs government guaranteed loans to cover their operational costs.
It is a cost the newspaper article quotes the President of the Trinidad Travel Agents Association as saying the country "cannot take on as it would mean their government will be bailing out two airlines as Caribbean Airlines is also losing money".
RJR News could not ascertain how much money Caribbean Airlines lost in 2009...but we know at the end of 2008, the Trinidad carrier had turned a small profit after replacing the loss making BWIA in 2006.
Currently, the Trinidad government subsidises the operations of Caribbean Airlines transferring upwards of 495 million TT dollars towards operational costs in fiscal 2008 and 2009.
It is feared similar sums would have to be forked out for Air Jamaica in a merged company...plus Trinidadians are worried they will be saddled with the US$250 million it will cost to wrap up Air Jamaica including sums for redundancy.
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