OPERATIONAL CONTROL of Air Jamaica will remain in the hands of the Gordon 'Butch' Stewart-led consortium, a release from the airline said yesterday, in response to comments by Finance Minister Dr. Omar Davies about the carrier's ownership structure.
"Although the Government will increase its stake in Air Jamaica, it will not take over the operation of the airline," said the release quoting Mr Stewart.
Government and Air Jamaica Holdings are currently joint owners of the airline, with the latter holding a 75 per cent share. AirJ Holdings has asked Government to take an additional 20 per cent equity in exchange for discharging some of its debt.
On Tuesday, Dr. Davies told a press conference that the debt for equity swap now being finalised, coupled with the convertible preference shares Government holds in the airline, would effectively give it majority ownership.
"The deal will make Government the owner of the airline," he said. Attempts at getting the airline to comment then were unsuccessful.
But yesterday, Air Jamaica said the Minister's comments were misinterpreted to mean that Government would be retaking control of the carrier that it privatised in 1994.
When the deal is finalised, it said, "Government will own 45 per cent of the shares and Air Jamaica Holdings will retain 55 per cent and the controlling interest.
"According to Mr. Stewart, he is proud to have the Government as a more substantial partner in the national airline."
