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Probe into sale of Air J Heathrow slots completed
Thursday, April 02, 2009
THE Office of the Contractor General (OCG) has concluded its special investigation into the divestment of Air Jamaica's London, Heathrow slots to Virgin Atlantic Airways, and has submitted its report to Senator Don Wehby and the relevant Government agencies and individuals.
Senator Wehby, the minister who has portfolio responsibility for Air Jamaica, in April last year asked Contractor General Greg Christie to investigate the sale of the London slots, in keeping with what he said was the need for transparency and accountability in the disposal of public assets.
The present administration, which came to power in September 2007, had questioned the divestment of the Air Jamaica London slots to Virgin Atlantic by the previous People's National Party Government for £5.1 million (US$10.2 million).
Air Jamaica, in May 2007, announced that it would discontinue its service to London, effective October 28, 2007 and enter into a code share agreement with Virgin Atlantic, in which the Air Jamaica code would be placed on all Virgin Atlantic flights between Jamaica and London Gatwick.
The sale of the national carrier's lucrative landing and gate slots at Heathrow airport in London to Virgin Atlantic also formed part of the deal which sparked public controversy.
The Government said then that the decision to discontinue the London route was made after careful and extensive deliberations. The route, it said, had been a significant drag on profitability, with little or no prospects for a reversal of the trend.
The former administration also said Air Jamaica had lost US$27 million on the London route in 2006, and projected losses exceeding US$30 million in 2007.
The OCG, in a statement Tuesday, did not say if there were any breaches in the divestment of the airline slots to Virgin, but said that in compliance with the obligations of Section 21 of the Contractor General Act, copies of the reports were despatched to the Office of the Director of Public Prosecutions and the Attorney General, "for such action as any or all of them may deem to be appropriate, having regard to the evidence that the OCG has found in the matter".
Copies of the report were also sent to:
. Audley Shaw, the minister of finance and the public Service;
. Sharon Crooks, financial secretary;
. Bruce Nobles, president & CEO of Air Jamaica;
. Speaker of the House of Representatives;
. President of the Senate;
and the
. Clerk to the Houses.
Thursday, April 02, 2009
THE Office of the Contractor General (OCG) has concluded its special investigation into the divestment of Air Jamaica's London, Heathrow slots to Virgin Atlantic Airways, and has submitted its report to Senator Don Wehby and the relevant Government agencies and individuals.
Senator Wehby, the minister who has portfolio responsibility for Air Jamaica, in April last year asked Contractor General Greg Christie to investigate the sale of the London slots, in keeping with what he said was the need for transparency and accountability in the disposal of public assets.
The present administration, which came to power in September 2007, had questioned the divestment of the Air Jamaica London slots to Virgin Atlantic by the previous People's National Party Government for £5.1 million (US$10.2 million).
Air Jamaica, in May 2007, announced that it would discontinue its service to London, effective October 28, 2007 and enter into a code share agreement with Virgin Atlantic, in which the Air Jamaica code would be placed on all Virgin Atlantic flights between Jamaica and London Gatwick.
The sale of the national carrier's lucrative landing and gate slots at Heathrow airport in London to Virgin Atlantic also formed part of the deal which sparked public controversy.
The Government said then that the decision to discontinue the London route was made after careful and extensive deliberations. The route, it said, had been a significant drag on profitability, with little or no prospects for a reversal of the trend.
The former administration also said Air Jamaica had lost US$27 million on the London route in 2006, and projected losses exceeding US$30 million in 2007.
The OCG, in a statement Tuesday, did not say if there were any breaches in the divestment of the airline slots to Virgin, but said that in compliance with the obligations of Section 21 of the Contractor General Act, copies of the reports were despatched to the Office of the Director of Public Prosecutions and the Attorney General, "for such action as any or all of them may deem to be appropriate, having regard to the evidence that the OCG has found in the matter".
Copies of the report were also sent to:
. Audley Shaw, the minister of finance and the public Service;
. Sharon Crooks, financial secretary;
. Bruce Nobles, president & CEO of Air Jamaica;
. Speaker of the House of Representatives;
. President of the Senate;
and the
. Clerk to the Houses.