Janet Silvera, Senior Tourism Writer

WESTERN BUREAU:

Operating at a loss of US$20 million (J$1.35 billion) per year on the Heathrow, London route has become "unsustainable" for the national airline, Air Jamaica, said chairman of the Jamaica Tourist Board (JTB), Dennis Morrison.

As a result, the airline is reviewing its options with scheduled carriers Virgin Atlantic and British Airways, the JTB chairman admitted yesterday.

Following a meeting with Jamaica Hotel and Tourist Association (JHTA) president, Horace Peterkin, and council member, Godfrey Dyer, at the Iberostar Rose Hall, in Montego Bay, yesterday afternoon, Mr. Morrison told The Gleaner that government's objective was to ensure that, whatever arrangements are made, airlift into Montego Bay from the United Kingdom and Europe is maintained.

The JTB chairman was responding to concerns raised by the hotel association members and media reports carried in the Telegraph stating that Virgin Atlantic had staved off competition from British Airways to earn a code-sharing deal for the Air Jamaica London to Kingston route starting October.

Yesterday, Mike Henry, Opposition spokesman on transportation, also expressed concern about the reported sale of the London to Kingston route and pointed out the decision was taken outside the discussions of a joint select committee of Parliament looking at the same concerns regarding the airline.

No public details

Mr. Henry said it was of particular concern, too, that the airline's management and both Dr. Omar Davies, Minister of Finance, who would have oversight responsibility for any such divestment; and Transport Minister Robert Pickersgill, had so far failed to give any public details about the reported deal with Virgin Atlantic.

The sale will mean an additional two flights per week from London to Jamaica for Virgin Atlantic, which already has two weekly flights from London to Montego Bay which it acquired in July of last year, the Telegraph had said. The story noted that Virgin has also procured Air Jamaica's Heathrow take-off and landing slots, for an undisclosed sum of money.

Since the report, the JHTA has expressed its disappointment in not being included in the talks, and has called for the new business plan of the airline to be made public.

"(This) so that we know what is needed from the sector in terms of assisting with lobbying and our general input, especially as it relates to marketing the destination," Mr. Peterkin told The Gleaner.

Cautious not to give the impression that the JHTA wants Air Jamaica to continue to operate at a loss, Mr. Peterkin, said his organisation was stressing that any replacement must make sense.

"What we are looking for is the reinstating of British Airways into Montego Bay and Virgin's increase of its flights into the destination," he said.

In the meantime, a highly placed source at Virgin Atlantic confirmed to The Gleaner that the long-haul airline would be operating the current Air Jamaica flights.

"Air Jamaica will continue to sell the seats along with Virgin, but our pilots and stewardesses will man the flights," he said.

According to the source, Air Jamaica would still be able to generate revenue and would reduce its current loss considerably.

janet.silvera@gleanerjm.com