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The Bruce Golding Administration has announced that it plans to sell the state-owned carrier, Air Jamaica, by 2009.
Minister without portfolio in the ministry of finance and the public service, Senator Don Wehby, said the money being put into Air Jamaica could be better utilized in financing social services.
"The level of Government's support necessary to keep the airline in operation is unsustainable," the government information service revealed on Friday.
He was speaking at an investment seminar earlier last week. "It must be recognized that continuation of this level of support to the airline is at the expense of the country's social services," he added.
The minister also revealed that government was in the process of recruiting an investment banker to lead the divestment process and to ensure that the advantages are maximized.
"We hope to have restructured and divested Air Jamaica, such that it is no longer a strain on the budget by late March 2009. These decisions, though difficult politically, are in keeping with the Government's commitment to sustainable macro-economic stability."
He noted that while operating inefficiencies are to a large extent controllable and can over time be remedied, it is also recognized that factors in the global environment, particularly rising oil prices, are outside the control of the airline and unfavourable to its future viability.
Air Jamaica recently sold its slots at Heathrow Airport in Britain to Virgin Atlantic. It also entered into a code sharing agreement with the British carrier.
