Air Jamaica is Making Money

[ECO]

It seemed like only a couple of months ago that Air Jamaica was up for sale and they were reducing their number of flights. Now it seems that their luck has changed and they are making money........good news for everyone that was scared to book flights a few months out with them!

Very short article @ http://www.radiojamaica.com/content/view/23510/52/

[ECO]

This is odd, if they are making money and borrowing money at close to 20 points something is fishy:

Mr. Shaw was speaking in the debate on his motion for approval of a revised Government Guarantee, in respect of a $1.8 billion loan arranged by NCB Capital Markets Limited for the cash-strapped airline. He said that the proceeds of the loan will be used to finance its business plan for fiscal 2009/10.

"The original terms had the interest rate at 22.51 per cent. (Under) the new issuance, which is being done through NCB Capital Markets, the interest rate has been reduced from 22.51 per cent to 19.04 per cent," he outlined.

Source for both quotes at http://www.jis.gov.jm/finance_planning/ ... TMENT_.asp

[ECO]

At least they are offering good sale prices:

Philadelphia to Montego Bay is $256 round-trip. Chicago to Montego Bay/Kingston is going for $264 round-trip. Baltimore to Montego Bay will be $412 round-trip.

New York to Kingston is $238 round-trip. Philadelphia to Kingston is $350 round-trip, and Baltimore to Kingston is going for $402 round-trip.

Fares are per person, round-trip and valid for travel in economy class from January 19 – May 15, 2010. Travel on the outbound sector must commence between January 19, 2010 and April 30, 2010.

Source: http://www.oregontraveldaily.com/news/j ... 09_453.php