Jamaica Close to Divesting National Carrier

Air Jamaica has moved one step closer to becoming a privately-owned carrier. Privatization committee members have recommended a candidate to Jamaica’s government and the Air Jamaica board of directors.

Members of the privatization committee, assisted by input from the International Finance Corp. (the private-sector arm of the World Bank), had negotiated with interested parties for more than a year before making their final recommendation.

The government’s first deadline for selling cash-strapped Air Jamaica was March 31. The deadline was then extended to June 30.

Under terms of the purchase, the government will maintain a minority equity stake in the airline. The purchaser must maintain the airline’s Jamaican identity and provide reliable airlift on certain routes.