Sunday, May 2, 2010

Air Jamaica to be absorbed by Caribbean Airlines

Air Jamaica begins its sad flight into the Caribbean sunset on Saturday.

Crushed by more than $1 billion in debt, the government-owned airline is being taken over by Trinidad's carrier, Caribbean Airlines, after midnight on Friday. Caribbean, owned by Trinidad, plans to phase out the Air Jamaica brand within 12 months, said Air Jamaica CEO Bruce Nobles.

Air Jamaica passengers shouldn't notice a change for months. Air Jamaica will operate under contract with Caribbean Air during the transition - Air Jamaica planes will fly under the Air Jamaica logo, and passengers can still redeem Air Jamaica frequent-flier points.

That will include Air Jamaica's four daily flights out of Fort Lauderdale - three to Kingston and one to Montego Bay, Nobles said. The Fort Lauderdale routes will give Caribbean a stronger South Florida presence. It already flies from Miami and Fort Lauderdale to Port-of-Spain.

The Jamaican government will receive a 16-percent stake in Caribbean as part of the deal, according to Jamaican media reports.

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