The House of Representatives on Tuesday approved a government guarantee for loans valued at $101.8 million to Air Jamaica Limited, in support of the funding requirements for its approved business plan for the financial year 2009-2010.

According to a Ministry Paper tabled by Minister of Finance and the Public Service, Audley Shaw, Air Jamaica is now operating under a new business plan, which proposes to stabilize the airline and make it more attractive for divestment.

The objectives of the plan include refocusing the operations of the airline; resizing its fleet and increasing aircraft utilization and productivity by a reduction in the size of the fleet from 15 to 9 aircraft; and an increase in the average utilization of aircraft from eight hours to 10 hours per day.

The plan also projects net operational loss and transition cost equivalent of $63.2 million for the 12-month period ending December 2009; and identifies a financing requirement equivalent to $150 million - $135 million for January to June and $15 million for July to December 2009.