Uncertainty hovers over Caribbean Airlines/ Air Jamaica deal

There are conflicting reports on Friday morning concerning the signing of the document to consummate the Caribbean Airlines/ Air Jamaica deal.

With a day to go before the 12 month transition period ends, it is unclear when signatures will be placed on the shareholder agreement which will officially give the Trinidadian air carrier control of the Lovebird.

Word out of Trinidad is that the deal has been postponed for at least two weeks, following high level discussions with Jamaican officials.

The agreement was originally scheduled to be signed on Thursday by representatives of Caribbean Airlines and Finance Minister Audley Shaw but was postponed.

RJR News was told that the signing was rescheduled to take place on Friday but when contacted on Thursday night Air Jamaica Chairman Dennis Lalor said he was awaiting clarification on when the deal will be cemented.

A source in the finance ministry said the signing could take early next week.

A report on the Trinidadian website Newsday said all the legal paperwork has not as yet been completed and as a result, an agreement has to be negotiated with the Jamaican Government for a postponement at least until May 15.

It said Caribbean Airlines Chairman George Nicholas has been trying to secure the services of eminent Caribbean jurist Fenton Ramsahoye as part of the legal team to complete the transaction but the board is yet to meet on the issue.

Caribbean Airlines was given a 12-month transition period which ends tomorrow, to integrate Air Jamaica into its operations.

It has the option of walking away without penalty. 

And there is an air of uncertainty hanging over several workers at the Lovebird.

RJR News has been informed that employees are awaiting word on their status as their contracts will come to an end on Saturday.

It is reported that some Air Jamaica workers have already been informed that their contracts will not be renewed while others have been offered short term employment.

In those instances persons have been given the option of part-time work with a cut in salaries.