For the moment, Air Jamaica continues to fly under its own name and livery, although Caribbean Airlines acquired the financially troubled carrier in May. The Jamaican government sold the airline to qualify for a $1.25 billion bailout from the International Monetary Fund to help balance the country’s budget.

On May 1, Caribbean Airlines took financial responsibility for Air Jamaica, and the Jamaican government transferred Air Jamaica’s routes to Caribbean Airlines for a 16 percent ownership in the latter. However, the government remains the owner of all of Air Jamaica’s other factions, including its real estate and industrial assets. Under the agreement, which was finalized on April 28, the government of Trinidad & Tobago was slated to contribute working capital to facilitate the merger, while the Jamaican government assumed the debt and covered the multibillion dollar wind-up costs.

Dennis Lalor, Air Jamaica’s chairman, says the acquisition was designed to help ensure a seamless transition for customers and shippers. Among other things, it meant that there would be no disruption of service; all tickets previously issued to the passengers will be honored. Lalor says that the final deal was superior to the initial bid submitted by Caribbean Airlines and superior to the transaction that was contemplated with another bidder, Indigo Partners. He says that to ensure the long-term sustainability of its new Jamaican network, Caribbean Airlines had to streamline operations, which included laying off Air Jamaica employees. Caribbean Airlines then rehired 1,000 of them for the transition period.

The airline is currently in a transition period that will last six to 12 months, with Air Jamaica continuing to serve routes from New York (JFK) to Montego Bay, Jamaica; JFK to Kingston, Jamaica; Philadelphia to Montego Bay; Toronto to Kingston; Fort Lauderdale, Fla., to Montego Bay; and Fort Lauderdale to Kingston.