THE EDITOR, Sir:
YOUR CONTRIBUTOR, Max Lambie, suggests in his June 13 featured article 'Placing Air J in the Right Marriage' that it is time to accept that Air Jamaica will "forever need to be subsidised" - the only question to be determined - by how much each year?
The history of the airline since its privatisation suggests that the required amount will be between US$25 million and US$100 million each year: representing the range of annual taxpayer support provided to or sought by the airline from the government since privatisation.
Were there no other solution to ensure continued adequate, appropriately priced airlift between Jamaica and its principal business and tourism markets his argument might be tenable - tourism is vital to the development and health of the Jamaican economy.
There is however a viable alternative to continued subsidisation and that is the inclusion of Air Jamaica as the Air Jamaica division of a single Caribbean Regional Airline incorporating as other divisions the existing operations of BWIA and LIAT.
Contrary to Mr. Lambie's assertions the economic feasibility of a single Caribbean Regional Airline has been extensively analysed over the years in a number of government commissioned (and still proprietary) studies that have all in my understanding reached the same conclusion: that the costs saving, operational efficiencies, market synergies and other benefits of such a 'merger' would result in overall profitability for the combined airline from the outset.
Competition would continue to be provided both intra regionally from the likes of American Eagle and Caribbean Star and extra regionally by the major US and European carriers.
The Jamaican government has the ability to exercise effective control over Air Jamaica as a result of its massive subsidisation of the airline since privatisation. It has sight of the various analyses supporting the economics and benefits of a single regional airline.
The governments of the region are speaking with one voice of the need for a single regional airline - only Jamaica's voice is silent. The political will to make this a reality exists - the planning is well advanced to merge BWIA and LIAT and a regional airline will emerge: whether it will incorporate Air Jamaica or not is up to the Jamaican government - the time for action is now.
It would indeed be unconscionable on the part of the government if it fails to seize this opportunity and thereby condemn the hard-pressed Jamaican taxpayer to continued unnecessary subsidisation of the national airline on the current scale - which if history is a guide - is what the future holds.
I am, etc.,
JOHN GILMORE
3 Rosebank Road
Edinburgh, Scotland
Via Go-Jamaica
