Whiteman, left, and Munroe
Leonardo Blair, Staff Reporter
THE NATIONAL carrier, Air Jamaica, has lost more than J$34 billion (US$560 million) since its privatisation in 1994 and is also carrying a debt burden of almost $42 billion (US$682.7 million).
Some $8.5 billion (US$136 million) of the airline's current debt is owed to Government.
Minister of Information, Burchell Whiteman, made the disclosure yesterday in the Senate while responding to questions posed by government Senator Professor Trevor Munroe about the airline's viability, on November 5.
MORE FINANCING NEEDED
It was further revealed in yesterday's sitting of the Senate that based on projections made by management consulting firm Sabre Airline Solutions, last month, the airline will need some $16.8 billion (US$277 million) in the next five-10 years for new capital investment.
The Government of Jamaica holds 25 per cent of the shares in the airline with the Gordon 'Butch' Stewart-led Air Jamaica Acquisition Group controlling most of the remaining 75 per cent of the shares.
Despite receiving answers for his 27 questions, Dr. Munroe's line of follow-up questions suggested he was not totally satisfied that the airline would be moving towards viability anytime soon.
He also asked what was being done to ensure that the airline's operation would be brought up to scratch to ensure it does not continue to strain the national purse.
Minister Whiteman pointed out that in 1999 an operational audit of the airline was done by Price WaterhouseCoopers and several recommen-dations made to improve profitability.
Recommendations were made in the areas of financial and human resource management, cutting maintenance costs, mixing the aircraft and in the area of revenue management.
