THE EDITOR, Sir:

IN A letter published in the Tuesday, October 23, edition of The Gleaner, Jean Robertson references a slot transaction between British Airways (BA) and SN Brussels and suggests that the transfer price paid by BA was significantly higher than the price achieved by Air Jamaica in their transaction with Virgin Airways.

Unfortunately, Ms. Robertson misinterprets the reporting of the BA/SN Brussels transaction in that she assumes that seven slots represent one slot per day by seven days in the week. The measurement of 'slot prices' is based on the number of slot pairs per day, therefore, the seven slot pairs referenced in the BA/Brussels transaction in reality equates to seven separate take-off and landing slots per day. Ms. Robinson's misinterpretation is not uncommon; others unfamiliar with the industry have done the same.

The London Times on March 30, 2007, reporting on the deal between BA and BMI British Midland, notes: "It is understood BA paid around £30 million for 51 slots per week", making the clear distinction of the number of slots per week. This amounts to an average of just over seven pairs per day and yields a value of about £4.2 million per pair.

If one were to assess Ms. Robertson's example correctly, BA paid SN Brussels an estimated £4.3 million per pair. Air Jamaica transferred one pair for £5.1 million. The value of a slot pair is also affected by the arrival and departure times of the slots, and whether such times are consistent throughout the week. Air Jamaica's slots were neither prime-time slots, nor were they the same times throughout the week; nevertheless, Air Jamaica was able to receive excellent value for its slots relative to the going market.

In assessing relative slot pair values, it is also important to know related considerations. In the case of the Air Jamaica/Virgin, the agreement also included a five-year code share and handling agreements, which is estimated to earn Air Jamaica US$3 million per year; other considerations also included Virgin's commitment to add additional non-stops to Kingston.

Set out below is a table with some other reported transactions that will help provide a further insight into implicit values in the Heathrow Slot Market. (See table below)

So, to answer Ms. Robertson's query, Air Jamaica in accepting £5.1 million obtained not only a fair market price for the slots, but also secured other significant benefits for the airline and Jamaica.

I am, etc.,

Dr. JEFFREY MEEKS

Former board member

Air Jamaica Ltd.