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Butch gives AA deal thumbs up
Pact critical as J'ca seeks to take advantage of Olympic glory
Monday, September 08, 2008
STEWART... to say Jamaica is being hoodwinked is misleading
The Caribbean and Jamaica's leading hotelier, Gordon 'Butch' Stewart believes the deal with American Airlines (AA) is good for the tourism-dependent island at this time.
Stewart said that given the turbulence being experienced by the aviation industry ravaged by high oil prices, the AA deal would protect Jamaica's tourism industry from undue exposure at a time when the country should be taking advantage of the benefits to come from the glorious performance of our Olympians in Beijing, China.
The hotel mogul also noted a Sunday Herald newspaper lead story saying Jamaica was "hoodwinked" by the United States carrier and described it as "misleading because the airline historically had protected Jamaica more than any other in the Caribbean".
Stewart, sounding bemused when contacted last night for his comments on the emerging controversy over the tourism ministry's arrangements for AA to protect tourism airlifts to Jamaica, said the critics probably did not have a full understanding of the issue, were "being mischievous" or "playing a little politics".
"Everyone in the (tourism) industry knows that Air Jamaica, our national carrier, is, unfortunately, not in a position to protect the industry at this time as it is too unreliable," Stewart said. "For sometime now we all know that the airline has lost its marketing prowess," he added.
"The tourist industry is too critical to our economy in terms of foreign exchange earning and jobs for Jamaicans to leave it exposed and in this regard, American Airlines is being an excellent partner," he suggested.
Under the deal, Jamaica could pay AA up to US$4.5 million to maintain flights from three US cities - Dallas, Chicago and Miami - to Jamaica, but the island would earn US$96 million, based on the 3,000 seats per week which are involved, according to Tourism Minister Ed Bartlett.
He was responding to criticisms levelled at the arrangement by Opposition Spokesman on tourism, Dr Wykeham McNeill who blasted the deal as a misuse of the Tourism Enhancement Fund.
Stewart praised American for agreeing to guarantee additional seats to Jamaica at a time when it had reduced its capacity worldwide by 11 per cent.
And he suggested that the tourism minister should receive kudos for acting early before any further fallout in airlifts to Jamaica, noting that all airlines were in contraction mode.
"To say Jamaica is being hoodwinked is misleading," he said in response to the Sunday Herald article claiming that while AA was receiving money from government to fly to Jamaica, it was offering reduced fares to other Caribbean destinations.
"I do not know where they got that information, but I am aware that all airlines have sale from time to time. In any event, Jamaica is not subsidising American. The airline has asked to have its risks covered.
"In the past, it has asked other Caribbean countries to do the same. But it has never received any money because the risks never materialised, based on the airline's excellent performance," Stewart said.
"In the final analysis, it is token money but it demonstrates the commitment of a partner in this period of difficulty for the aviation industry," said the Sandals chairman. "It is also important to note that the $4.5 million is a cap on the risks American is taking."
He emphasised that protecting airlifts into Jamaica was even more critical because of the expansion of rooms in the tourism sector in recent times.
Pact critical as J'ca seeks to take advantage of Olympic glory
Monday, September 08, 2008
STEWART... to say Jamaica is being hoodwinked is misleadingThe Caribbean and Jamaica's leading hotelier, Gordon 'Butch' Stewart believes the deal with American Airlines (AA) is good for the tourism-dependent island at this time.
Stewart said that given the turbulence being experienced by the aviation industry ravaged by high oil prices, the AA deal would protect Jamaica's tourism industry from undue exposure at a time when the country should be taking advantage of the benefits to come from the glorious performance of our Olympians in Beijing, China.
The hotel mogul also noted a Sunday Herald newspaper lead story saying Jamaica was "hoodwinked" by the United States carrier and described it as "misleading because the airline historically had protected Jamaica more than any other in the Caribbean".
Stewart, sounding bemused when contacted last night for his comments on the emerging controversy over the tourism ministry's arrangements for AA to protect tourism airlifts to Jamaica, said the critics probably did not have a full understanding of the issue, were "being mischievous" or "playing a little politics".
"Everyone in the (tourism) industry knows that Air Jamaica, our national carrier, is, unfortunately, not in a position to protect the industry at this time as it is too unreliable," Stewart said. "For sometime now we all know that the airline has lost its marketing prowess," he added.
"The tourist industry is too critical to our economy in terms of foreign exchange earning and jobs for Jamaicans to leave it exposed and in this regard, American Airlines is being an excellent partner," he suggested.
Under the deal, Jamaica could pay AA up to US$4.5 million to maintain flights from three US cities - Dallas, Chicago and Miami - to Jamaica, but the island would earn US$96 million, based on the 3,000 seats per week which are involved, according to Tourism Minister Ed Bartlett.
He was responding to criticisms levelled at the arrangement by Opposition Spokesman on tourism, Dr Wykeham McNeill who blasted the deal as a misuse of the Tourism Enhancement Fund.
Stewart praised American for agreeing to guarantee additional seats to Jamaica at a time when it had reduced its capacity worldwide by 11 per cent.
And he suggested that the tourism minister should receive kudos for acting early before any further fallout in airlifts to Jamaica, noting that all airlines were in contraction mode.
"To say Jamaica is being hoodwinked is misleading," he said in response to the Sunday Herald article claiming that while AA was receiving money from government to fly to Jamaica, it was offering reduced fares to other Caribbean destinations.
"I do not know where they got that information, but I am aware that all airlines have sale from time to time. In any event, Jamaica is not subsidising American. The airline has asked to have its risks covered.
"In the past, it has asked other Caribbean countries to do the same. But it has never received any money because the risks never materialised, based on the airline's excellent performance," Stewart said.
"In the final analysis, it is token money but it demonstrates the commitment of a partner in this period of difficulty for the aviation industry," said the Sandals chairman. "It is also important to note that the $4.5 million is a cap on the risks American is taking."
He emphasised that protecting airlifts into Jamaica was even more critical because of the expansion of rooms in the tourism sector in recent times.
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