THE EDITOR, Sir:
The current debate surrounding Air Jamaica's financial situation is interesting in the context of the global airline industry and particularly how this region is affected.
In Air Jamaica's case there is the additional problem of serving a country where crime is high and thus impacts on their main customers, tourists.
Air Jamaica has been carrying long term debt from a long time, noting that the carrier's last profitable year was 1974, thus the carrier has been continuously supported by government even after privatisation.
It's interesting to note that in the U.S. many carriers have folded in the last 20 years carriers like: Pan-American Airways, Eastern, TWA, and many others.None of those carriers were assisted by federal or state finances.
They simply had to file chapter II. The Jamaican situation is much more complex as it is viewed that the economy depends on a state airline in order to bring tourists and for export of its products. That is fine. However, the question is: can the airline be profitable and lessen government subsidies which could be channelled into other areas of the economy?.
I am, etc.,
N.W. CHAMBERS
Kingston 8
