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<TABLE cellSpacing=0 cellPadding=1 width="100%" border=0><TBODY><TR><TD><SPAN class=TopStory>Air J pumped US$5.49-B in economy between 1995 and 2004</SPAN>
<SPAN class=Subheadline></SPAN></TD></TR><TR><TD>Ken Chaplin
Tuesday, February 13, 2007
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</TD></TR><TR><TD><SPAN class=Description>Ken Chaplin</SPAN></TD></TR></TBODY></TABLE><P class=StoryText align=justify>On occasions this column has made its position clear on the heavy financial losses incurred by Air Jamaica over the years. It does not make sense for taxpayers to be subsidising the airline with hundreds of millions of dollars while the social services are in such an alarming state. The only way out, it seems, is for Air Jamaica to merge with another airline in an effort to save taxpayers' money. So when I received, on request, a copy of what I regarded as an excellent presentation by Vincent Morrison, president and island supervisor of the National Workers Union, to the select committee of Parliament probing the airline's losses and future viability, I telephoned him stating my views. His response was that they have to give Air Jamaica a "last chance". I tried to get a copy of the presentation by Ruddy Spencer, president of the Bustamante Industrial Trade Union, but I did not hear from him.<P class=StoryText align=justify>In 2004, after being controlled by the Air Jamaica Acquisition Group for 10 years - 75:25 partnership with the government - the airline was returned to Government saddled with heavy losses due to circumstances beyond the control of the management. Morrison said since the airline was privatised in 1994, it has sustained losses of approximately US$1 billion. At the time of privatisation, the airline had accumulated a deficit of US$150 million, and the company lost approximately US$675 million during the time it was in private hands. Air Jamaica's audited financial statements for 2005 indicate that the airline lost just under US$l20 million for the calendar year, compared with US$99 million in 2004. For the next two years the airline will have to make do with a subsidy of US$80 million from the Government.<P class=StoryText align=justify>However, the NWU president advanced an apparently sound argument why the airline should remain in Jamaica's hands. He said a recent study by researchers from the Massachusetts Institute of Technology's International Centre for Air Transportation provided quantitative data to prove that Air Jamaica has contributed significantly to the Jamaican economy. The research team looked at the economic impact of the airline on Jamaica over the period 1995 to 2004, concluding that some US$5.49 billion was contributed directly to the economy and US$3.66 billion was indirect incremental contribution. Other researchers have come to similar conclusions. It seems that Air Jamaica deserves another chance.
<SPAN class=Subheadline></SPAN></TD></TR><TR><TD>Ken Chaplin
Tuesday, February 13, 2007
</TD></TR></TBODY></TABLE>
<TABLE cellSpacing=0 cellPadding=5 width=80 align=left border=0><TBODY><TR><TD>
</TD></TR><TR><TD><SPAN class=Description>Ken Chaplin</SPAN></TD></TR></TBODY></TABLE><P class=StoryText align=justify>On occasions this column has made its position clear on the heavy financial losses incurred by Air Jamaica over the years. It does not make sense for taxpayers to be subsidising the airline with hundreds of millions of dollars while the social services are in such an alarming state. The only way out, it seems, is for Air Jamaica to merge with another airline in an effort to save taxpayers' money. So when I received, on request, a copy of what I regarded as an excellent presentation by Vincent Morrison, president and island supervisor of the National Workers Union, to the select committee of Parliament probing the airline's losses and future viability, I telephoned him stating my views. His response was that they have to give Air Jamaica a "last chance". I tried to get a copy of the presentation by Ruddy Spencer, president of the Bustamante Industrial Trade Union, but I did not hear from him.<P class=StoryText align=justify>In 2004, after being controlled by the Air Jamaica Acquisition Group for 10 years - 75:25 partnership with the government - the airline was returned to Government saddled with heavy losses due to circumstances beyond the control of the management. Morrison said since the airline was privatised in 1994, it has sustained losses of approximately US$1 billion. At the time of privatisation, the airline had accumulated a deficit of US$150 million, and the company lost approximately US$675 million during the time it was in private hands. Air Jamaica's audited financial statements for 2005 indicate that the airline lost just under US$l20 million for the calendar year, compared with US$99 million in 2004. For the next two years the airline will have to make do with a subsidy of US$80 million from the Government.<P class=StoryText align=justify>However, the NWU president advanced an apparently sound argument why the airline should remain in Jamaica's hands. He said a recent study by researchers from the Massachusetts Institute of Technology's International Centre for Air Transportation provided quantitative data to prove that Air Jamaica has contributed significantly to the Jamaican economy. The research team looked at the economic impact of the airline on Jamaica over the period 1995 to 2004, concluding that some US$5.49 billion was contributed directly to the economy and US$3.66 billion was indirect incremental contribution. Other researchers have come to similar conclusions. It seems that Air Jamaica deserves another chance.
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