Jamaica’s government plans to hand over operations of national carrier Air Jamaica to Caribbean Airlines on April 12.
Air Jamaica CEO Bruce Nobles said the date coincides with Air Jamaica’s new summer schedule, but that April 12 is a target date and could change.
Caribbean Airlines will be financially responsible for the carrier’s operation after the transaction date. As the current proposal now stands, Air Jamaica will continue to operate with its existing fleet under contract to Caribbean Airlines for six months to a year, Nobles said.
It was not immediately clear if the Air Jamaica brand would survive.
"We are aiming for a seamless transition to ensure that customers can continue to book and fly to and from Jamaica with confidence," Nobles said.
He emphasized that travel agents will see no changes in booking procedures or schedules. The JM airline code remains the same for now.
Air Jamaica tickets already processed for flights booked after April 12 are in force and are valid, according to Nobles.
All Air Jamaica employee positions will be made redundant, according to Nobles, and a new company will be created to hire the required personnel under fixed-term contracts with Caribbean Airlines.
Members of the transition team from Caribbean Airlines are in Jamaica now reviewing employee information and conducting personnel interviews as part of the transition.
Although the number of jobs required and the terms and conditions of employment are still being finalized, Nobles expected that many of the current Air Jamaica employees will be rehired.
The terms and conditions of Air Jamaica management positions are still to be determined, Nobles said.
"As CEO, I was the first to be interviewed, but I was brought in on an interim and temporary basis in 2005 to lead the divestiture efforts," he said.
Air Jamaica has lost more than $1 billion over the last 10 years and currently has debt exceeding $500 million.
Caribbean Airlines is the national airline of Trinidad & Tobago, and is wholly-owned by that country's government.