Air J-CAL agreement delayed

The final agreement that would consummate the Caribbean Airlines Limited (CAL) takeover of the cash-strapped Air Jamaica has been delayed.

Media reports in Trinidad said the April 30 deadline was missed because of failure to finalise several legal documents regarding the merger.

One source said that the agreement could now be signed on May 15 and that both the attorneys general in Jamaica and Trinidad and Tobago are yet to examine the proposed agreement.

In April last year, the Bruce Golding government assumed all financial liabilities up to the end of that month for Air Jamaica, with CAL assuming the financial risk of continuing Air Jamaica's activities from May 1, 2010.

Under the agreement, the Jamaica government will own 16 per cent of the Trinidad-based CAL while Port-of-Spain will spend an estimated US$49.2 million to facilitate the expansion of CAL, which took over five of Air Jamaica's profitable routes last year.

-CMC