Derby: Show us proof

Director General of the Jamaica Civil Aviation Authority Lt Colonel Oscar Derby wants proof from his Trinidad counterparts of the regulatory requirement on dual branding, which has led to them dropping the Air Jamaica brand from Caribbean Airlines (CAL).

"I need to see the actual requirement quoted for the move. I cannot speculate because it is not the nature of regulators to do so. But I want to see the regulation," said Derby.

Trinidad's Civil Aviation Authority reportedly instructed the CAL to shelf the Air Jamaica brand in anticipation of an audit by the US Federal Aviation Authority.

It will cost a reported US$60,000 to rebrand each plane.

The directive apparently indicates that CAL is not licensed to operate two brands; despite operating both since the 2010 acquisition of the Jamaican carrier.

Internationally, many airlines operate two brands under a single call sign. CAL promised the Financial Gleaner a response later this week.

The terms of the sale involved keeping the Air Jamaica brand, according to Derby recalling negotiations and pronouncements by then Prime Minister Bruce Golding.

"The matter of the brand was an important part of the negotiations. At the launch, they said that they would continue to use both brands," he said.

In April, CAL removed the 'Lovebird' call sign from Air Jamaica planes which was viewed at the time as a loss of goodwill according to opposition spokesman on tourism Ed Bartlett. He expressed concern that the move could affect diaspora loyalty.

CAL acquired Air Jamaica in May 2010 with a final transfer in May 2011. Air Jamaica had wracked up US$1 billion of losses up to that point, and the sale freed Jamaica from having to pour additional capital into the struggling airline.

Jamaica acquired a 16 per cent equity stake in CAL valued at US$28.5 million under the deal.

Queries to the divestment team on whether Jamaica had control of the brand and could sell or lease it to another airline were unanswered up to press time.

business@gleanerjm.com