Committee named to probe CAL-Air Jamaica deal
Published:Friday | June 18, 2010 | 12:00 AM
Linda Hutchinson-Jafar, Business Writer
Trinidad and Tobago's new Finance Minister Winston Dookeran has appointed a three-member committee to probe the merger deal between Caribbean Airlines Limited (CAL) and Air Jamaica.
The transaction cost the twin-island state US$50 million to acquire and operate six Air Jamaica aircraft and eight of its routes.
Jamaica got a 16 per cent stake in the merged operation, with CAL owning 84 per cent.
Dookeran, a former Central Bank Governor, said he now has the information relating to the new arrangements between CAL and Air Jamaica which were finalised ahead of the May 24 national elections in Trinidad that ousted the Patrick Manning-led People's National Movement from office.
"The minister of finance is of the view that there is an urgent need to clarify the precise nature and scope of these new arrangements, particularly having regard to the possible significant level of fiscal resources involved, the relative lack of disclosure regarding the details of the new arrangements and the need to ensure that the resources of the country are utilised for the maximum benefit of its citizens," said Dookeran.
The working committee which includes Conrad Aleong, a former president of CAL and Selby Wilson, a former finance minister, will access the status and implications of the CAL/Air Jamaica arrangements.
Among its objectives, the committee will conduct a comprehensive assessment of the operations of CAL with a view to identifying opportunities for improving the efficiency and profitability of the airline; undertake a comprehensive cost/benefit evaluation of the proposed/new arrangements from both a financial and economic perspective and make recommendations regarding the preferred future strategic direction for CAL to secure maximum benefits for the citizens of Trinidad and Tobago in the short, medium and long term.