Air J sold to Spirit Airlines?

Two of the trade unions which represent Air Jamaica workers have reacted angrily to a newspaper report that the national carrier has been sold to United States based carrier Spirit Airlines. 

The story has raised the ire of union leaders who have been at odds with the Government over the poor communication of plans to sell the airline and how workers will be affected.  

http://www.radiojamaica.com/content/view/19498/52/

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In a media release, the minister said that the committee - assisted by expert input from the International Finance Corporation, which is the private-sector arm of the World Bank Group, and which has a record of more than 150 successful assignments in some 60 countries - had negotiated strategically with the two top investor prospects and had made a final recommendation for the signing of a document of agreed terms with one party. The terms include a provision for the Government of Jamaica to maintain a minority equity stake in the airline.

Some stakeholders in the tourist industry would not be disappointed with this outcome. Many have confided that this would be good move on the part of the Air Jamaica divestment team.

http://www.jamaica-gleaner.com/gleaner/20090704/lead/lead1.html

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Private Equity Buyers for Air Jamaica

Air Jamaica in its second privatization attempt is likely to be operated as a discount carrier with an uncertain future. The Spirit Airline is likely to operate the Jamaican national carrier as a low cost airline that will focus on American tourists and Jamaicans living on the East coast.

Air Jamaica may have a new majority owner if the Jamaican government follows through the recommendation of the Privatization committee advised by the International Finance Committee, the arm of the World Bank.

The sale of the national carrier is expected to relieve the Jamaican treasury of $100 million of annual deficit but is likely to be stuck with its debt of $650 million.

http://www.123jump.com/market-update/Private-Equity-Buyers-for-Air-Jamaica/33608/