Senator Don Wehby, the Cabinet minister with responsibility for Air Jamaica, now says the plans to sell the carrier may not materialise in March, the original deadline.

The minister without portfolio in the finance ministry also said the Government was negotiating with two potential buyers, but declined to name them.

"We had a meeting in Miami last week and we now have two prospects," Wehby said Wednesday as guest presenter at the monthly Mayberry Investor Forum in Kingston.

"We have two reputable airlines that are interested in acquiring Air Jamaica."

The carrier has been a lossmaker for years, strangled by accumulated debt of some US$1.3 billion.

The Government, which currently subsidises the airline at US$30 million annually, had hoped to wrap up the sale before the start of the new fiscal year, April 1.

Two months ago, in November, the Government confidently said a sale would still be possible within the time frame.

Deadline

But on Wednesday night, Wehby was no longer so sure.

"The discussions are happening and we are hoping that we can conclude within the time frame," he told the forum.

"Having said that, March 31 is close, but we are going to try our best to hit that deadline."

Air Jamaica claims a 44 per cent market share of Jamaica's air-travel market and says it is the carrier of choice for 50 per cent of Jamaicans, and 31 per cent of foreign visitors.

The airline lost US$170 million in 2007 and was expected to haemorrhage another US$200 million at year end December 31, 2008.

Some of the conditions for the divestment are that the Air Jamaica brand must be maintained, adequate airlift must be provided for the island, and the selected partner must have extensive airline experience, matched with the appropriate capital.

Minister of Finance and the Public Service Audley Shaw said in Baltimore last autumn that Jamaica would be maintaining a minority stake in the carrier.

mark.titus@gleanerjm.com