The BWIA Minority Shareholders Group (BMSG) is not pleased that the Jamaican government has been given 16 per cent shareholding in Caribbean Airlines Ltd (CAL). Peter Permell, coordinator of the group, said his membership was offered a $0.20 per share on BWIA shares, while the Jamaican government got 16 per cent ownership. The BMSG was formed after BWIA was shut down in December 2006. The group comprises flight attendants, pilots and other former employees of BWIA.
The group was not pleased about the value which was placed on the shares and made repeated calls to the Government to increase the value. That matter is now before the court. On Wednesday, Arthur Lok Jack, chairman of CAL, announced that the Jamaican government would have 16 per cent ownership of CAL, once the transition process to merge the two airlines was complete. In a statement Thursday, Permell said there were repeated calls for members of the BMSG to receive a better value for the shares that they owned in BWIA.
Referring to legacy costs, Permell said he was relieved the Government would not be absorbing any of those costs when the transition was over. The court matter between the BMSG and the State about the value of the shares, is scheduled for next week. Lok Jack said on Wednesday that the T&T Government plans to invest US$50 million into Caribbean Airlines Ltd (CAL) so that its operating and capital expenditure can be met on May 1 when CAL takes over Air Jamaica's "profit-making" routes.
CAL had been in talks with a divestment team from the International Monetary Fund (IMF), which was appointed to look after Air Jamaica's affairs after that airline's debts mounted to unsustainable levels.
When the transition takes place, T&T's CAL would have 84 per cent ownership and the Jamaican government 16 per cent. The Jamaica Information Service has reported that the Jamaican government is spending an estimated US$200 million to meet Air Jamaica's outstanding obligations during the transitional period.