Airline to be divested.

Jamaica signed an agreement with the US Trade & Development Agency to get its debt-ridden national airline off its books by 2009, reports AP (May 6, 2008). The island will collect a US$820,000 (euro530,401) grant from the agency to reduce its investment in state-owned Air Jamaica--which Prime Minister Bruce Golding has called as a significant drag on the national budget:

Sen. Don Wehby said the US grant would allow Jamaica to shed all holdings in the airline by March 2009. Air Jamaica has cost the country millions of dollars (euros) since 2004, when government took over and began restructuring the airline, Golding said. The struggling carrier has eliminated routes and laid off workers, attempting to turn a profit. Eliminating all state holdings in the airline will ultimately help it survive, said Minister of Finance and Public Service Audley Shaw;

"We are looking forward to this privatization process, which will ultimately be to the benefit of Air Jamaica," Shaw said. The funds were secured by the International Finance Corp. (IFC) on behalf of the government of Jamaica. The IFC has been engaged as consultants/advisors by the Government to assist with the sale of Air Jamaica.