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Stabroek News



More fire over AA deal
published: Monday | September 8, 2008

Arthur Hall, Senior Staff Reporter

The Bruce Golding administration is facing more fire today over the US$4.5-million contingent guarantee it has given to American Airlines.

Since The Gleaner broke the story last week, several questions have been raised about the deal, which could see American Airlines being paid J$324 million if it gets less than 75 per cent of its seats on its flights to Jamaica taken up over a 12-month period starting November 1.

Minister of Tourism Edmund Bartlett has defended the accord, arguing that "such a deal with a legacy carrier allows us the opportunity to deliver the world to Jamaica and Jamaica to the world".

Intensified

But the firestorm of criticism has intensified in the wake of allegations yesterday that American Airlines had reduced the cost of its tickets to other Caribbean destinations and Mexico, while retaining the prices to fly to Jamaica.

The roasting of the Golding administration was led by Opposition Spokesman on Tourism Dr Wykeham McNeill, who said the Government needed to provide the country with more details about the agreement.

"What are the details of the deal and how will Jamaica's interests be protected?" McNeill asked while speaking to The Gleaner.

According to McNeill, the administration also needs to state whether the decision to spend more than J$324 million was approved by the Cabinet and why the details were not announced in Parliament.

"This deal was not well thought out and I am strongly opposed to it," he said.

Similar guarantees

The opposition spokesman argued that this was a first for Jamaica and could lead to other airlines, such as Virgin Atlantic and British Airways, demanding similar guarantees.

Yesterday, The Gleaner was unsuccessful in its efforts to get a response, to the latest round of questions, from Bartlett. The American Airlines administrative offices were closed.

However, in a release on Saturday, Bartlett said Jamaica would enjoy increased service from American Airlines at a time when the nation's regional counterparts would see a reduction in service.

arthur.hall@gleanerjm.com

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