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  • American Airlines paid to stay


    published: Thursday | September 4, 2008


    Arthur Hall, Senior Staff Reporter
    The Government could pay out as much as US$4.5 million (J$324 million) over the next 12 months to American Airlines to ensure that it does not cut flights to Jamaica.
    Expensive jet fuel and a soft United States economy have caused American Airlines to announce cuts in daily flights out of its Caribbean hub in Puerto Rico, from 93 to 51 this month.
    Already gone are flights to Antigua, St Maarten, Aruba, Santo Domingo and Samana in the Dominican Republic.
    Willing to pay
    But with a projected sharp increase in visitor arrivals, Jamaican authorities are trying to ensure that the airline continues its flights into the island and are willing to pay the airline to keep landing in Kingston and Montego Bay.
    The cash guarantee is being financed by the Tourism Enhancement Fund and its chairman, Godfrey Dyer, is defending the deal, which was negotiated by Tourism Minister Edmund Bartlett.
    "It is a very good investment. This is something that we support, and when it came before my board, we examined it and we believed it would be money well spent," Dyer said.
    According to Dyer, a similar programme existed years ago, financed by Jamaica Vacations Limited, but it was discontinued because of a lack of funds.
    He said the money would only be paid to the airline if it failed to get an established minimum number of passengers on its flights into the island.
    Dyer did not state the minimum passenger level agreed on, arguing that this was sensitive information.
    However, he told The Gleaner that American Airlines was selected because it had more capacity than any other airline coming into the island.
    "A number of our Caribbean neighbours, which had flights coming in seven days a week, are now having flights one day a week, so Jamaica, today, is the only Caribbean island that has adequate seats coming into the island."
    Dyer dismissed claims that the decision to offer American Airlines a guarantee would put Air Jamaica at a disadvantage.
    "Air Jamaica is being subsidised by the Government anyhow, so this is no unfair advantage to American Airlines," Dyer added.
    Price pinch
    Regional tourism interests have repeatedly warned that the flow of visitors to the island could be slashed as airline ticket prices soar and flights are sharply reduced.
    The flight rollbacks are coming despite increases in tourism last year to most of the islands, including double-digit growth in United States visitors to Antigua, St Lucia and Jamaica.
    The Caribbean is not the only region being affected by flight cuts as, in May, American Airlines announced steep cuts in flights around the world.
    The reduction, almost double what American forecast in April, resulted in the elimination of at least 300 flights a day from the 4,300 that it and its regional affiliates offered. It also led to the elimination of more than 6,000 jobs.
    Efforts to get a comment from American Airlines yesterday were unsuccessful.
    arthur.hall@gleanerjm.com
    Fact about the TEF

    The Tourism Enhancement Fund was established under the PNP administration in 2005 to provide a pool of dedicated funds for the express purpose of impro-ving the tourism product.
    The broad areas of interest include resort development, product development and beautification. Specific projects targeted for funding are required to satisfy such criteria as the capacity to be self-sustaining; boosting economic prosperity; increasing the competitiveness of the tourism product; promoting resort development; and, focusing on heritage and culture.
    "Jamaica's future reflects its past, having attained only one per cent annual growth over 30 years whilst neighbours have grown at five per cent." (Article)

  • #2
    Are these people for real?
    "Jamaica's future reflects its past, having attained only one per cent annual growth over 30 years whilst neighbours have grown at five per cent." (Article)

    Comment


    • #3
      uuuuuuuuuuuuuuuuuuuuuuuuuuunnnnnnnnnnuuuuuuuuuuuuu hhhhhhhhhhhh?
      "Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has."

      Comment


      • #4
        American Airlines?


        BLACK LIVES MATTER

        Comment


        • #5
          I don't understand your question Lazie.
          Hey .. look at the bright side .... at least you're not a Liverpool fan! - Lazie 2/24/10 Paul Marin -19 is one thing, 20 is a whole other matter. It gets even worse if they win the UCL. *groan*. 05/18/2011.MU fans naah cough, but all a unuh a vomit?-Lazie 1/11/2015

          Comment


          • #6
            Originally posted by Jangle View Post
            I don't understand your question Lazie.
            Why we paying American Airlines? Sounds stupid to me.
            "Jamaica's future reflects its past, having attained only one per cent annual growth over 30 years whilst neighbours have grown at five per cent." (Article)

            Comment


            • #7
              Originally posted by Lazie View Post
              Why we paying American Airlines? Sounds stupid to me.

              No it's not in my opinion. The returns from having an increase in tourism arrivals will offst that easily. Straight business 101.
              Hey .. look at the bright side .... at least you're not a Liverpool fan! - Lazie 2/24/10 Paul Marin -19 is one thing, 20 is a whole other matter. It gets even worse if they win the UCL. *groan*. 05/18/2011.MU fans naah cough, but all a unuh a vomit?-Lazie 1/11/2015

              Comment


              • #8
                But with a projected sharp increase in visitor arrivals, Jamaican authorities are trying to ensure that the airline continues its flights into the island and are willing to pay the airline to keep landing in Kingston and Montego Bay.
                What's the problem?


                BLACK LIVES MATTER

                Comment


                • #9
                  Suh AA getting paid by the travelers plus getting paid by the GOJ? Is that the norm? Paying airlines to fly to your country? Mi nuh know ... mi a ask.

                  If thats the case ... why not just increase the Air Jamaica fleet den?
                  "Jamaica's future reflects its past, having attained only one per cent annual growth over 30 years whilst neighbours have grown at five per cent." (Article)

                  Comment


                  • #10
                    Because it would cost more to increase a fleet of aircrafts than to just pay AA which already has the infrastructure and public recognition. It just makes good business sense.
                    Hey .. look at the bright side .... at least you're not a Liverpool fan! - Lazie 2/24/10 Paul Marin -19 is one thing, 20 is a whole other matter. It gets even worse if they win the UCL. *groan*. 05/18/2011.MU fans naah cough, but all a unuh a vomit?-Lazie 1/11/2015

                    Comment


                    • #11
                      dem need tuh hurry up wid di Casinos.. man will swim across fi get their gamble on...

                      Comment


                      • #12
                        and yuh not joking, right?


                        BLACK LIVES MATTER

                        Comment


                        • #13
                          Damn skippy!!!! That would be the first step in part of my economy recovery plan. The other two is legalising the vibrant sex industry and God's gift to jamaica, the good sensimilla.
                          Hey .. look at the bright side .... at least you're not a Liverpool fan! - Lazie 2/24/10 Paul Marin -19 is one thing, 20 is a whole other matter. It gets even worse if they win the UCL. *groan*. 05/18/2011.MU fans naah cough, but all a unuh a vomit?-Lazie 1/11/2015

                          Comment


                          • #14
                            That is what I was about to ask Jangle. If we consider this money an investment in the tourist industry, will it allow them to realize a profit to offset this investment? In other words, if you spend $4.5 million to make say even $20m, then it would be more than wotrth it.
                            "Only when you drink from the river of silence shall you indeed sing. And when you have reached the mountain top, then you shall begin to climb. And when the earth shall claim your limbs, then shall you truly dance." ~ Kahlil Gibran

                            Comment


                            • #15
                              Chump change:

                              http://www.jamaica-gleaner.com/glean...business4.html

                              I rest my case. Missah Gamma yuh proud a me?
                              Hey .. look at the bright side .... at least you're not a Liverpool fan! - Lazie 2/24/10 Paul Marin -19 is one thing, 20 is a whole other matter. It gets even worse if they win the UCL. *groan*. 05/18/2011.MU fans naah cough, but all a unuh a vomit?-Lazie 1/11/2015

                              Comment

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