DancehallUsa Online Magazine Official Website

A preliminary targeted transaction date of April 12 has been set by which the operations of Air Jamaica will begin the transition to Caribbean Airlines.

This transaction date dovetails with the airline’s major schedule change that was previously announced. However, the transaction date could change as the details of the transition are finalized. The transition to Caribbean Airlines will be phased over a period of up to one year, in order to ensure that customers will continue to be provided with the best possible travel experience.

Air Jamaica aircraft will continue to be utilized during the transition period. Current Air Jamaica pilots, flight crews and ground staff will operate the aircraft for the schedule already published. All customer services, including reservations, website and sales, will continue to operate in much the same way as today, for a period of time.

EVEN as a deal for the takeover of Air Jamaica by Caribbean Airlines seems imminent, a senior trade unionist here is beseeching the Jamaica Government not to go ahead with the deal.

Vincent Morrison, who heads the powerful National Workers Union (NWU), insists that Air Jamaica should be kept in local hands, and believes that the 1,900 workers at the national carrier are more than equipped to run the troubled airline that racked up huge losses over the last four decades of its existence.

“I can’t believe that the Government would spend $28 billion to give away one of our best assets,” Morrison told the Observer in an interview.

The NWU president was referring to the amount of money that the Government has said it would cost to make the positions of workers redundant when the airline is divested.

Although the Government has not confirmed that a deal has been inked with Trinidad & Tobago-based Caribbean Airlines, Prime Minister Bruce Golding has said that talks were underway and the Government hoped to conclude the agreement soon.

Jamaica is seeking to borrow US$1.25 billion from the International Monetary Fund under the agency’s Standby Arrangement for balance of payment support, and among the conditions is the divestment of loss-resulting entities like Air Jamaica, for budget relief.

“We are going to communicate with the Government both in writing and hopefully in a meeting to know the status of the discussions with Caribbean Airlines,” said Morrison, whose trade union represents some of the workers at Air Jamaica.

“We hope to convince the Government that selling out to Caribbean Airlines is not the best,” Morrison said.

The NWU’s strategy is have the Government write off the debt, which is estimated to reach US$1.4 billion, by the end of the fiscal year in March, something which, according to Morrison, would be offered to Caribbean Airlines.

The airline would be run under the Employee Share Ownership Plan or ESOP, a sophisticated stock ownership, which would see 100 per cent ownership falling into the hands of workers.

ESOPs are not common in Jamaica, but figures show that they are becoming increasingly popular in the world’s leading economy, the United States where over 11,000 ESOPs, involving over nine million workers have been operating since 1974.

“The workers are saying to the Government: put the legacy into a fund from which the workers would be prepared to use their redundancy payments to run the airline. We would also be looking to float an IPO (Initial Public Offer) to involve Jamaicans at home and in the Diaspora, where we ask Jamaicans abroad to invest. Apart from getting a Paul Getty or someone with big money, that’s how you have to go,” Morrison said.

“Caribbean Airlines does not have the capability, logistically and operationally, to deal with running Air Jamaica,” he said. “If Air Jamaica is taken over by Caribbean Airlines, you could see a tremendous fallout in the Jamaican economy. Air Jamaica contributes $6 billion to the economy. We have 12,000 farm workers in Canada and the USA who send back to Jamaica in excess of Can/US$100 million, taken out of their pay compulsory.

“There are also between 4,000 and 5,000 hotel workers who do the same thing. If you don’t retain Air Jamaica, all of this would be compromised. Getting rid of 1,900 Air Jamaica employees would also indirectly affect the jobs of a further 10,000, plus there are other issues involved,” Morrison said.

Members of the Jamaica Airline Pilots Association have also proposed that the Government use a portion of the funds being set aside for redundancy to recapitalise the airline and put it in a position to live on its own.

Morrison is firm in his view that if the workers are allowed to run the entity as their own, there would be a turnaround in its economic fortunes.

“Air Jamaica has never been properly capitalised since its inception. The workers over the years have made sacrifices. Some have worked for five years and more, without salary increases.

“Some have given back to the airline, in terms of salary cuts, so the commitment and love for the airline are there. The redundancy money could be used to recapitalise the airline.

“The brand Air Jamaica is golden. That would be gone if Caribbean Airlines takes over. The Air Jamaica brand is like Usain Bolt in terms of quality and this country should not give that up,” Morrison said.

Air Jamaica announced Thursday that baggage regulations will be revised for passengers by October 14. As of this date, Economy Class passengers will be allowed two pieces of checked baggage and one carry-on piece. However, a fee of $25 will apply for the second checked bag. These regulations apply to checked baggage weighing up to 50 pounds each.

The revised policy will decrease the fee for overweight baggage from $75 to $50 for the first bag weighing 51 – 70 pounds. Excess baggage charges for flights within the Caribbean will increase from $80 to $125 per bag. For Lovebird Executive Class passengers, the policy remains unchanged as the airline continues to allow three pieces of checked luggage, along with one carry on bag at no charge.

Update: Jamaica Gleaner

I wish to express concern on behalf of the Air Jamaica Privatisation Committee, which I chair, about a misleading story – headlined ‘Air Jamaica Sold …’ – which appeared in the Saturday, July 4, issue of The Gleaner.

I characterise the story as ‘misleading’ because Air Jamaica has not yet been sold. It was stated clearly in a news update which was issued June 30, that the privatisation committee has made a recommendation regarding a possible transaction. The press release also made it clear that a decision on that recommendation had to be made by Cabinet and the board of Air Jamaica. Neither of those activities has as yet taken place.

No contracts signed

Additionally, both the headline and the other sections of The Gleaner’s July 4 story – which named two firms which “have bought the country’s national carrier, Air Jamaica” – give the impression that the privatisation committee and the minister have misled the country by executing a sale, while advising the country that only a recommendation, which is to be decided upon, has been made. This is far from true and I use this opportunity to reiterate that such formal approvals have not been made and that no contracts have as yet been signed with anyone.

Recent experience with other privatisation efforts should make everyone aware of just how carefully negotiations of this nature must be handled. The negotiations to privatise Air Jamaica are at an extremely delicate stage and the confidentiality arrangements remain in place until initial agreements are signed, key stakeholders are brought up to date on the possible implications of the sale and there is final closure.

While we understand the desire of media houses to ‘scoop’ each other on matters of national interest, such as the Air Jamaica privatisation, we urge that care be taken to ensure that nothing is done to derail what is a critical transaction for and on behalf of all the people of Jamaica.

I am, etc.,

DENNIS LALOR

Chairman

Air Jamaica

Privatisation Committee

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 AirlinesThe 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.

According to the Gleaner story, Air Jamaica has been sold to the owners of Spirit Airlines and the name of the national airline may be changed.

This has angered Vice President of the National Workers Union, (NWU) Granville Valentine. Mr. Valentine also has serious concerns about the secrecy under which the sale has been done.

“It is unfortunate that the Steering Committee which was in place and which included the unions, was not aware of the bidders (or) of the final decision, and to hear it publicly tells us how somewhat of how the Government does business. It is not democratic, it is not something that people of this country has any say in … it tells us that it is the private sector that is running this country.

“How can you have two of the leading unions within the union as a party to this process and we know nothing of what transpired,” Mr. Valentine asked.

“At this stage of the game, it is still a recommendation that is supposed to go before Cabinet but Cabinet and the Government must make a decision. The first concern is what changes are going to be made to Air Jamaica since Spirit is a low cost airline. “We have seen where the trimming of staff started as part of the business plan

but we don’t know to what extent the changes are going to be made and how any changes will impact on the workforce,” said Mr. Gayle.

He like Mr. Valentine is expecting to have discussions with the Government and the management of Air Jamaica before a final decision is made to sell the airline.

When contacted Information Minister Daryl Vaz said Cabinet has not yet signed off on the sale of the airline. He added that the NWU will be seeking a meeting with the Government and Air Jamaica’s management as the unions should be consulted before a deal is inked.

In the meantime, President General of the Bustamante Industrial Trade Union Kavon Gayle says he wants to know what changes are coming to Air Jamaica when the sale is approved. He says this is unacceptable as Air Jamaica is a brand that is known worldwide.

Props: http://www.radiojamaica.com/

A Jamaican-born man accused over a year ago of attempting to carry material used in the making of bombs aboard an Air Jamaica aircraft, walked free without the matter going to trial at a court in Florida on Monday.

Kevin Christopher Brown, 33, was released from jail after his lead counsel and fellow Jamaican Wayne Golding argued successfully before a judge at a public hearing in the Federal Court, Middle District of Florida in Orlando that he had not committed the offence for which he was accused and that he had spent a long time in prison awaiting trial, which was unfair to him.

“It was based on an unopposed motion that we filed for his release,” Golding told the Observer in an exclusive interview yesterday.

Brown was arrested at Orlando International Airport in Florida on April 1 last year for attempting to carry bomb components aboard Air Jamaica’s flight 80 from Orlando to Montego Bay.

Transportation Security Administration officers held onto him after they said he was acting suspiciously.

Brown, an American citizen, packed flammable and explosive nitro-methane in his luggage before they were detected by airport security.

“He is actually out on bond, but the case is closed. We have reached a stage where it will be resolved and all is left is for some paperwork to be completed,” Golding said. “The matter was scheduled for trial on June 30, but it has since been determined by experts on both sides that Mr Brown never intended to blow up the plane. It was an overreaction on the part of the authorities, but I can’t say that I blame homeland security for responding the way that they did, what with all the terrorist activities going on these days. “After the prosecution went through the items, they came to the same conclusion as us, that he was not guilty of what he was accused of,” Golding said. Brown spent 14 months in jail awaiting trial of possession of explosive devices.

He was denied bail due to what Magistrate Karla Spaulding said then was his possession of the explosive items, evidence that he was admitted to a Veterans Affairs hospital for psychiatric treatment and his lack of residential and financial connections to Florida. Golding, who appeared in the matter with American lawyer Tim McClain, said that the items that Brown possessed were not explosives that could have put the lives of the passengers at risk.

“The government’s attorneys said that they could not prove the case. What it might come down to is he could face a misdemeanour charge, like unauthorised entry onto airport property with an item that could be a cigarette lighter or matches. The intent was not there,” Golding said.

Brown is now at an undisclosed location in the USA and is trying to get his life back on track, his lawyer said.
“We don’t want to disclose his location, but he is free, moving about and grateful for all the support that he got. We are extremely grateful that this is over. It’s been a 14-month nightmare for all those involved. He has been through a lot. What his eyes have seen, our brains can never comprehend. His mother was murdered in Jamaica, he served the military, but he was not yet a US citizen, so he will not get certain benefits.

“He has a strong family unit in Jamaica that has stood by him, in particular, his adopted mom, Ms Rodney in Kingston. She was the impetus in what we consider a successful conclusion to this matter,” Golding said.

Golding, in the meantime, is warning Jamaicans to be careful when they travel overseas, as they were not always clear on procedures. “I travel to Jamaica all the time and see people who could end up the same way like Mr Brown. They carry simple items, like some agricultural stuff, that could get them in trouble without them knowing,” Golding said.