HALL - file
JAMAICA PRODUCERS Group Chairman, Dr. Marshall Hall, says Government must accept that Air Jamaica's losses are not likely to be repaid from future earnings and instead of further indebtedness and continued borrowing, it should immediately sell the airline.
He called on Government to stop the bleeding by hugging up the losses and putting the airline for sale.
"We need to do something and quickly," he declared, adding: "The first loss is usually the cheapest and the time has passed to stop the financial rot and get out."
Addressing the installation function for the new president of the Rotary Club of New Kingston, Mr. Athelstan Bellamy at the Jamaica Pegasus Hotel recently, Dr Hall said the sale of Air Jamaica should be done by way of tenders to buyers who have the know-how and requisite capital, with proceeds used to pay down the existing debt.
According to Dr. Hall, Government should neither own nor retain any ownership in a privatised Air Jamaica. Describing himself as a frequent user of the national carrier, Dr. Hall said: "The morale of the staff is at the low end, quality of service has deteriorated and the goodwill of the airline - an important saleable asset, is being destroyed.
On the matter of a possible fallout in the availability of seats into the island which could result from a privatised, smaller Air Jamaica, Dr Hall suggested that a fixed subsidy be made available annually to the world airline trade as encouragement for them to provide these seats into the island from designated gateways.
Dr Hall said governments in countries where tourism underpins the economy must not run airlines as the temptation to allow losses is too great.
