Trinidad and Tobago will honour the Caribbean Airlines and Air Jamaica agreement.

That`s the word from new Prime Minister, Kamla Persad-Bissessar. The assurance was given at a press conference at Jamaica House following bilateral talks between Prime Minister Bruce Golding and Persad-Bissessar on Monday.

Elaborating on the Caribbean Airlines - Air Jamaica deal, Prime Minister Persad-Bissessar said her government had spent some time reviewing the agreement and is prepared to honour it to the mutual benefit of both countries.

She also gave the assurance that the name “Air Jamaica” will be retained as the brand is very vital and important for the success of the venture.

Caribbean Airlines took over Air Jamaica`s operations following an agreement finalized in April. Under the agreement the Trinidadian government was slated to contribute working capital to facilitate the merger, while the Jamaican government assumed the debt and covered the winding-up costs.

However, concerns were raised about the deal by Persad-Bissessar`s administration on assuming office in May.

The T&T PM had communicated her concerns to PM Golding prior to the two meeting face-to-face on the weekend, saying that the lack of transparency over the deal had her government worried about the extent of its liability in taking over Air Jamaica.

But after the meeting when she was presented with documents showing the full disclosure of the agreement, Persad-Bissessar reportedly gave her word that her government will honour the deal.