Bookmark Jamaica-Gleaner.com
Go-Jamaica Gleaner Classifieds Discover Jamaica Youth Link Jamaica
Business Directory Go Shopping inns of jamaica Local Communities

Home
Lead Stories
News
Business
Sport
Commentary
Letters
Entertainment
Profiles in Medicine
The Star
E-Financial Gleaner
Overseas News
Communities
Search This Site
powered by FreeFind
Services
Archives
Find a Jamaican
Library
Weather
Subscriptions
News by E-mail
Newsletter
Print Subscriptions
Interactive
Chat
Dating & Love
Free Email
Guestbook
ScreenSavers
Submit a Letter
WebCam
Weekly Poll
About Us
Advertising
Gleaner Company
Search the Web!

CAA cites continued fee delinquency
published: Wednesday | January 28, 2004

By Earl Moxam, Senior Gleaner Writer

THE CIVIL Aviation Authority (CAA) is reporting continued delinquency in the payment of fees by local and foreign airlines, which the CAA in turn is blaming for its inability to make full payment of statutory deductions.

At the top of the CAA's delinquency list is national airline, Air Jamaica, which, according to the Auditor-General, owed about $129 million as of February 28, 2003.

Col. Terrence Lewis, director-general of the CAA, told the Public Accounts Committee (PAC) of Parliament yesterday that his current receivables stood at $282 million.

AIRSPACE

The rest, he said, was owed by the airline's subsidiary, Air Jamaica Express, and foreign airlines landing in Jamaica or using the island's airspace.

"It has been very difficult to collect from Air Jamaica on a continuous basis, and as a result we have fallen behind in our statutory deductions, namely income tax," Colonel Lewis told the PAC.

"At present we are pressing Air Jamaica to make payment."

Attempts at comment from Air Jamaica were unsuccessful as chief executive Chris Zacca was not immediately available, the airline said.

ACCOUNTS

The matter arose during yesterday's meeting when the accounts of the Ministry of Transport & Works and its agencies were examined.

The Auditor-General had reported that as of March 2002 CAA statutory deductions of approximately $45.5 million made from employees' emoluments since 1988 were not remitted to the relevant agencies.

Colonel Lewis said his agency relied on its receipts from the airlines for landing fees and fly-over rights, along with subventions from Government to make statutory payments.

"When we do not collect from Air Jamaica then there's a shortage of funds to make these payments," he said.

While much of the focus has traditionally been on the national airline, however, the CAA's director-general admitted that the agency was also finding it difficult to collect fees from foreign carriers.

"Some of them are quite delinquent. We use collection agencies, one in Miami and one local, but that's a constant battle. We actually do collections through IATA (International Air Transport Association) also, but it's a constant battle to keep up to date," he said.

Pressed by committee member Derrick Smith to assure the PAC that the CAA was making every effort to collect from the foreign carriers, Colonel Lewis explained that the CAA sometimes asks the Foreign Affairs Ministry to apply pressure on the countries from which these airlines originate.

COURT ACTION

But, court action has not been pursued "because you've got to balance the cost," he said.

Delroy Chuck, who chaired the PAC meeting, queried whether Jamaican air traffic control could refuse to provide flight information to delinquent airlines using the country's airspace.

But that, according to Colonel Lewis, was not permissible under the country's commitments as a member of the International Civil Aviation Organisation (ICAO).

More News | | Print this Page
















©Copyright2003 Gleaner Company Ltd. | Disclaimer | Letters to the Editor | Suggestions

Home - Jamaica Gleaner