Spirit Airlines Buying out Air Jamaica

[ECO]

This story is a little shocking:

Air Jamaica sold - First murmurs about who has bought the national carrier have surfaced

Published: Saturday | July 4, 2009

Janet Silvera, Senior Gleaner Writer

WESTERN BUREAU:

The Gleaner has learnt that Indigo Partners and Oaktree Capital, who are reportedly the owners of Spirit Airlines, have bought the country's national carrier, Air Jamaica.

It is further understood that Air Jamaica's name might be changed to Spirit of Jamaica.

Sources close to the negotiations are tight-lipped, but they have confirmed that Trinidadian-owned Caribbean Airlines did not win the bid to take over the Jamaican airline.

The news comes days after the Privatisation committee, which has been managing the task of privatising Air Jamaica, submitted its recommendation to Senator Don Wehby, minister without portfolio in the Ministry of Finance.

It also comes at a time when the airline is reporting an operational surplus for the first time in 10 years.

On Tuesday, Wehby disclosed that the Privatisation Committee, chaired by Dennis Lalor, had submitted to him the evaluation and recommendation report on the privatisation of the national carrier.

In a media release, the minister said that the committee - assisted by expert input from the International Finance Corporation, which is the private-sector arm of the World Bank Group, and which has a record of more than 150 successful assignments in some 60 countries - had negotiated strategically with the two top investor prospects and had made a final recommendation for the signing of a document of agreed terms with one party. The terms include a provision for the Government of Jamaica to maintain a minority equity stake in the airline.

Some stakeholders in the tourist industry would not be disappointed with this outcome. Many have confided that this would be good move on the part of the Air Jamaica divestment team.

"Spirit is already mean and lean and that is exactly what Air Jamaica needs in order to strategically grow," said one hotelier, adding that the routes plied by both carriers might be complementary.

Strategic investment

Earlier, Spirit had announced the completion of a strategic investment, led by Indigo Partners LLC and funds managed by Oaktree Capital Management LLC. The investment will provide significant resources for the company to consolidate its position as the leading low-cost carrier to the Caribbean, and pursue its long-term growth strategy.

Indigo Partners LLC, with offices in Phoenix, Arizona and Singapore, is a private-equity fund focused primarily on investing in the transportation, airline and airline-related sectors globally.

Oaktree Capital Management LLC is a Los Angeles-based private investment firm that manages in excess of US$30 billion in select niche investment markets for institutions and wealthy individuals.

janet.silvera@gleanerjm.com

Source: http://www.jamaica-gleaner.com/gleaner/ ... lead1.html

[Lanie]

"Input from The World Bank"

That makes the hair on the back of my neck stand up. I've been in a lot of countries that were advised by The World Bank and IMF. The end result is generally not good for the ordinary citizen.

[Rose21]

When i read the story in th Ja Gleaner I said to myself not again.When the government had control of Air Jamaica, I thought It was the one last thing we own in Jamaica, then It was sold againg. I think the government are just too lazy to come together and used there brains and figure out how to protect what little we have left, (if any) so they just sold everthing to foreign country. Can you belive it a country without a Nation carrier, how sad.I just hope they keep the name.

[Rose21]

Good Lord.
I have lost count of the number of times Air Jamaica has been bought and sold, and flipped back and forth between the Jamaican Government and private companies.

I really hope they do not change the name to Spirit of Jamaica.

This kind of news makes me very sad. The airline was operating at a surplus for the first time in 10 years, so why sell it off?
I was upset when they sold off their landing slot at Heathrow to Virgin Atlantic owned by Richard Branson, and I was concerned then at the future of the airline then.
How can a country have a national carrier owned by another country? It makes no sense whatsoever.

I feel you Tinks, the Government in Jamaica are notting but bench warmers. It's beyond me how they get there position. Last week i read in the Gleaner that they sold two or three sugar factory in the East coast to a Brazilian Company. I could not belive it. I mean what next the people?

[ECO]

At least there is one positive aspect, Caribbean Airlines did not win the bid. That would have been a disaster waiting to happen.

Another one is Spirit Airlines has cheaper fares than Air Jamaica!

[ECO]

Funny Spirit Airline Video

[ECO]

Another one

[ECO]

Lol, they might not be a great airline but Spirit does have at least person in their marketing department with talent.

[ECO]

Lol, I like this one

[TheWickedestTime.com]

Hey guys, how you all doing?

I saw an article saying that Air Jamaica denies selling to Spirit airlines and that they were going through economic hardships but they didn't make a final decision and wanted to see if the rest of the summer ends up being a bit profitable.

lets see...

more info here! http://www.caribdaily.com/article/17869 ... officials/