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Stabroek News

Time to ground Air Jamaica
published: Sunday | January 21, 2007

Garwin Davis, Sunday Gleaner Writer


Chief Executive Officer of Air Jamaica, Michael Conway (right), pauses during his recent presentation to a sitting of the Special Select Committee of Parliament which has been meeting to examine the financial and operational state of Air Jamaica while Air Jamaica's Chairman, O.K. Melhado, looks on. - Rudolph Brown/Chief Photographer

Government's US$30 million (J$2billion) annual commitment to keep Air Jamaica flying would be better spent on upgrading existing port facilities or on aggressively marketing the country as a premiere tourist destination, industry players say.

They note that the promises of a brighter future for Air Jamaica since going back under state ownership "don't seem to be materialising" and that the Government should take a long hard look before "Wasting anymore of the taxpayers' money."

"The hope that Air Jamaica will somehow find its way is almost like trying to win the lottery," said Junior Chambers, a Florida-based Jamaican airline pilot. "Just imagine the benefits to be had in using the Air Jamaica money to market Jamaica aggressively overseas in both Europe and the United States. By doubling or tripling our advertising budget, we would be talking about six million visitors instead of the three million we had last year."

Jamaica last year received a record three million visitors. This was achieved despite the fact that the murder rate was again out of control, resulting in the country's image taking another battering in the overseas press. The country currently spends anywhere between $US4 million and US$5 million annually on overseas advertising, a figure tourism officials have long complained is woefully short.

A beaming Prime Minister Portia Simpson said last Sunday: "We had a record three million visitors last year; can you imagine what that figure would be if we didn't have the crime problem?"

tourist arrivals

For Percy Mesquito, owner of the Marine View Hotel in Ocho Rios, "the equation is simple."

Put US$15 million of the Air Jamaica US$30 million subsidy into marketing Jamaica overseas and the other US$15 million into expanding the Reynolds Pier here in Ocho Rios and we would triple our tourist arrivals. The returns would be so great that we would have money to go into the social services like education and health care."

St. Mary businessman Raymond Thompson agreed. "It is a fact that Air Jamaica has never done well under state ownership," he said. "Say whatever you want to say about the previous owners but what they did was to use the airline as a marketing tool for Jamaica. I say no more money for the airline; use the resources to upgrade the ports where we can get eight to 10 ships per day."

The Gordon 'Butch' Stewart-led Air Jamaica Acquisition Group (AJAG) returned the management of the airline to the Government in December 2004, having had responsibility for 10 years. Finance Minister Dr. Omar Davies has recently restated the Government's decision to provide a subsidy of US$30 million - approximately $2 billion per year to keep Air Jamaica airborne - and has instructed senior management to restructure the company to operate within that financial window.

In November of last year an Air Jamaica aircraft was seized at the Miami International Airport for outstanding lease payments totaling $2 million. The aircraft was returned to the fleet only after the money was paid over to the creditors. The seizure of the aircraft was not only embarrassing to Jamaica but has since raised questions as to whether the country can continue to carry an airline that is seemingly on a path to no where.

Contacted, Mr. Stewart said: "It breaks our hearts to see Air Jamaica bing destroyed and no longer able to justify its existence." Air Jamaica's CEO Michael Conway could not be reached for a comment.

Industry players say money would be better spent on tourism marketing

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