Dawn Ritch, Contributor
A PNP Senator, Dr. Trevor Munroe, has asked 24 questions of the Government about Air Jamaica, and been given a fulsome reply by the Minister of Information. If that isn't a set-up, I don't know what is. Perhaps it is the launch of a political career for Dr. Munroe. He, of the Workers Party of Jamaica and Grenadian Revolution notoriety.
It wasn't worth his trouble really. Twenty-four questions is an awful lot of questions to ask about anything, when four or five ought to have sufficed. It stinks of overkill of the airline's chairman Gordon 'Butch' Stewart. Indeed it reeks of the biblical saying that it is easier for a camel to pass through the eye of a needle, than a rich man enter the gates of heaven. Except that Mr. Stewart is very much alive, and vigorously defending himself.
FINANCIAL SUPPORT
Air Jamaica has lost a lot of money since its divestment. Having divested it, the Government now a minority shareholder has become the biggest shareholder due to its financial support, whatever that may be. Because that was an agreement between the shareholders in 2001, but it's taken this long to iron out. And it still hasn't been ironed out. Instead, we get a game of 24 questions that the Government is anxious to play. And Butch Stewart made into a public spectacle, and accused of using the airline to enrich himself personally.
Bear in mind that the board of Air Jamaica has significant Government representation on it. The fact that up to now there has been no insistence from them to fix Air Jamaica's problems suggests that their support to Air Jamaica must have been by way of LRSs, promissory notes, and bonds, but no cash. The Government therefore actively condoned the withholding of taxes by the airline by way of cash infusion. But now wants to tar and feather the chairman for accepting it. Had the airport been properly categorized when they sold Air Jamaica to the private investors, their U.S. dollar investment might not have been lost. That is hardly the chairman's fault.
Moreover, it is fair to say that without the Category II debacle, Air Jamaica would have been in better condition to withstand the financial onslaught of both the liberalisation of the aviation industry and 9/11. Not to mention the steady and dramatic devaluation of the Jamaican dollar over the period, which puts an airline ticket out of the reach of the casual traveller from Jamaica.
DISCOUNTED AIRFARES
The allegation of discounted airfares to Sandals, of which he is also chairman, when Super Clubs and Half Moon can get them too, or any permutation of them, won't wash. This is standard airline procedure. In fact, it is usually complimentary because the aircraft goes wherever anyway. In fact, that is standard practice in the aviation interest worldwide.
But the 'wherever' is also a problem. Butch is accused of making Air Jamaica fly to the other islands because he has hotels there. The John Issas also have hotels there, as well as the Karl Hendricksons shortly. And I have absolutely no objection as long as Jamaican entrepreneurs have business interests there, and the payload is adequate. As a Jamaican taxpayer I do not wish to subsidise Sandy Lane or any other Barbadian, Trinidadian or St. Lucian hotel. Although the Government directors of Air Jamaica seem to have been both fast asleep and cowardly, I hope they did not agree to such a thing. Nor any subsidy to any other Caribbean territory's business interests here or elsewhere. They pay American Airlines to fly to their islands, and ought to do the same with us. There can be no "fraternal feelings" about it.
Jamaican taxpayers can only be saddled with a burden for their own country's prosperity and development. If the Government had bothered to manage our economy, the cost of managing the airline would not have gone through the roof.That Air Jamaica is still flying at all, and flying with high standards, is nothing short of a miracle. Right now it needs to extend its remit in Jamaica to small hotel properties.
The Jamaican Hotel and Tourist Association (JHTA) has been asleep at the switch, and so have its members. Is there any reason why JHTA couldn't be a tour operator, consolidating its members' guests so that all can access discounted fares on Air Jamaica? Air Jamaica has an indispensable role to play in the development of the Jamaican economy and growth in gainful employment. Instead of becoming envious of the big players in tourism, small hotels should demand the same treatment from Air Jamaica, and indeed are entitled to it in my book.
BULK FARES
Wherever there's a group coming to a property in Jamaica bulk fares are in order. These discounts are in the interests of the nation. Every curio seller, every hotel worker, every taxi-man, every farmer. We're supposed to be preparing for the time when bauxite runs out. Not flinging rotten eggs at the one man who is prepared to think about it. A Government guarantee is not a demand item on the national budget. If the airline pays down its debts, the loan won't be called. Unless the Government plans to shut it down as it has Jamaica Grande in Ocho Rios, the largest convention hotel in the Caribbean.
Butch has had his reputation deeply sullied. I think he should therefore call for an immediate audit of Air Jamaica's figures. The object is to find out how much of Air Jamaica's losses are attributable to discounted fares to Sandals Group senior management and personnel, as well as bulk fares for Sandals guests. It's hell having the Government for a partner in anything, but greater transparency and disclosure are called for.
Finally, an account is to be given comparing the airline's operational losses to the benefits to the economy from tourism and the Jamaican diaspora. It may well be immeasurable.
