Mike Henry, Opposition spokesman on transportation, has again raised concerns over the value of the slots at the Heathrow Airport in London, England, which the national carrier Air Jamaica is selling to Virgin Atlantic Airways.Henry is calling on Prime Minister Portia Simpson Miller and the Government of Jamaica to launch an independent assessment of the value of the slots. According to Henry, "Since a Memorandum of Understanding had been established and the matter of the sale not entirely finalised, the Government should revisit the proposeddeal before any final signing off is done."
The loss-making carrier has been in the public spotlight since the announcement last month by the airline's management that it would be selling its slots to British-based Virgin Atlantic. Air Jamaica's airline executive cited substantial increases in fuel prices, along with the impact on fares owing to additional schedule and charter flights as reasons for cutting the route, which had been unprofitable, with the company losing US$27 million (J$1.8 billion) in 2006, which was projected to rise to US$30 billion in 2007.
Rise in the demand
Henry, who had moved a parlia-mentary motion of no confidence in the administration of Air Jamaica, said an open-skies agreement recently signed by European Union transport ministers had created a sharp rise in the demand for slots at Heathrow Airport among transatlantic air carriers.
"The gap between the price being had under the planned deal and the actual potential intake based on the real demand for the slots, as is being reported to me, is just too wide for the matter to be let to slide without an independent review and re-evaluation," said Henry.
Checks by The Sunday Gleaner revealed that the Heathrow Airport is 98.5 per cent full. As such, the prices of slots could rocket to between 20-30 million, as transatlantic airlines such as Delta, British Airways and Continental bid for slots to expand operations. Air Jamaica is set to earn 5.1 million from the sale of its London route to Virgin Atlantic.
