Go Back  Airline Pilot Central Forums > Airline Pilot Forums > Major
Spirit and investors buy Air Jamaica >

Spirit and investors buy Air Jamaica

Major Legacy, National, and LCC

Spirit and investors buy Air Jamaica

Old 07-04-2009, 08:03 AM
Gets Weekends Off
Thread Starter
Joined APC: Nov 2006
Position: A320 FO
Posts: 115
Default Spirit and investors buy Air Jamaica

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

Published: Saturday | July 4, 2009

Janet Silvera, Senior Gleaner Writer


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.

I know this was already posted. I just thought it deserves its own thread.
emj55 is offline  
Old 07-04-2009, 08:09 AM
Gets Weekends Off
Joined APC: Dec 2008
Position: E-170 Airbender
Posts: 340

Next, RAH buys Spirit
RAHPilot5 is offline  
Old 07-04-2009, 08:10 AM
Gets Weekends Off
Twin Wasp's Avatar
Joined APC: Oct 2007
Position: Sr. VP of button pushing
Posts: 2,590

It's got it's own thread.

Didn't Oaktree roll Cargo360 into Southern Air?
Twin Wasp is offline  
Old 07-04-2009, 09:05 AM
Line Holder
Nopac's Avatar
Joined APC: Nov 2006
Position: gear pulling specialist 75/76
Posts: 77

Originally Posted by Twin Wasp View Post
It's got it's own thread.

Didn't Oaktree roll Cargo360 into Southern Air?
Yes they did, but most of the C360 pilots elected not to go over.

With regards to Air Jamaica, now the Spirit pilots can use that punch line from that old joke:
"Actually it reads: Welcome to Jamaica, mon, have a nice day...."
Nopac is offline  
Old 07-04-2009, 09:12 AM
Working Class Dog
11Fan's Avatar
Joined APC: Jan 2007
Position: Spares Pusher
Posts: 1,625

Wendy who?
11Fan is offline  
Old 07-04-2009, 09:45 AM
Gets Weekends Off
390SetBlue's Avatar
Joined APC: Apr 2008
Position: A320 CA
Posts: 184

Originally Posted by RAHPilot5 View Post
Next, RAH buys Spirit
Ahh.... NO!
390SetBlue is offline  
Old 07-04-2009, 11:25 AM
Looking for a laugh
Justdoinmyjob's Avatar
Joined APC: Feb 2008
Posts: 4,099

Originally Posted by 11Fan View Post
Wendy who?

Justdoinmyjob is offline  
Old 07-05-2009, 11:21 AM
Line Holder
PAN PAN PAN's Avatar
Joined APC: May 2009
Position: To close for guns switching to bazooka
Posts: 43

Spirit is becoming quite the power house in the caribbean/south american market place, seems to me this move will only solidify there hold down there. They appear to be on the track for a caribbean domination, they are making money for sure, just hope it doesn't come from expense of pilots getting furloughed from either place that would be a bummer. The sign of the times and the rise of the ULCC!!!!
PAN PAN PAN is offline  
Old 07-06-2009, 12:44 PM
Gets Weekends Off
Joined APC: Oct 2005
Position: Office Chair
Posts: 544

I'm curious to hear what theories are out there on what this means for the 2 carriers. Will the airlines be merged, or will they operate separately...setting the stage for whipsawing for the A320 deliveries?
FLYBOYMATTHEW is offline  
Old 07-06-2009, 01:07 PM
Gets Weekends Off
Joined APC: Dec 2007
Position: in line at the ticket counter
Posts: 102

From the article I read there are strings attached by the Jamaican government that say "the airline must keep it's Jamaican Id." They mention that the airline will possibly be called Spirit of Jamaica or something along those lines. From that I would guess that the list will remain separate and the aircraft might have to keep their Jamaican registries but who knows.
GRDHound is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

Thread Tools
Search this Thread