This was stated in the non-binding letter of intent signed on January 22 by the Government, Air Jamaica Limited, Air Jamaica Holdings Limited and Caribbean Airlines, a company owned by the Government of Trinidad and Tobago.
Under this agreement, the parties are committed to making best efforts to sign legally binding agreements by March 31. In this regard, the GOJ and Air Jamaica will take all necessary steps to effect the cessation of operations of Air Jamaica on or before July 1, and soon thereafter close Air Jamaica.
Caribbean Airlines will commence its Jamaican operations on or before July 1 upon the cessation of operations of Air Jamaica. Effective as of the consummation of the closing, the government has agreed that “Caribbean Airlines shall be the exclusive national carrier of Jamaica and, in this regard, will not request designation of national carrier status for any other air carrier for as long as the Jamaican operations maintain a minimum level of service and meet certain other criteria, which in each case will be set forth in the definitive agreements”.
Prior to the cessation of operations, Air Jamaica will “implement revenue management and communication measures as determined by Caribbean Airlines and reasonably acceptable to the Government of Jamaica in order to actively manage market share, enhance passenger loyalty to the national carrier, and help preserve the competitiveness of the launch of the Jamaican operations (of Caribbean Airlines)“.
Air Jamaica currently flies to five destinations on 13 routes. The destinations are the United States, Canada, Cuba, The Bahamas and Curaçao. Last year, the airline carried 1.1 million passengers on these routes.
