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Stabroek News

Air Jamaica franchise to subsidise tourism
published: Sunday | December 26, 2004

THE EDITOR, Sir:

Once again Air Jamaica is in the news. All those billions of dollars in uncollected taxes, losses, write-offs, lost investments are enough to confuse the average economist.

Gordon 'Butch' Stewart is a shrewd businessman who runs a successful hotel chain. Why can't he run a successful airline? If Mr. Stewart lost his investment in Sandals he would probably be bankrupt.

It is abundantly clear that Air Jamaica was not being run as a business but as a franchise to subsidise tourism from which only the hotels profit. The government should not accept equity for non-payment of taxes. If 25 per cent of nothing is nothing, 45 per cent of nothing is still nothing. For Air Jamaica to operate at a profit or at least break even, it must be run strictly as a carrier - an air taxi not a private part in the sky. Fashion shows, television and a diner on wheels are totally unnecessary.

The vast majority of people travel on airplanes because there is no alternative. Like myself, all they want is to be put down safely. Upon landing, let the hotels welcome their guests with all the food and drink they want. I am no economist but it seems to me whatever the government collects as taxes through tourism is lost through Air Jamaica. The Jamaican taxpayer should not be subsidising hotels, directly or indirectly. No wonder so many investors are coming here to build hotels and private resorts. The word is out: Jamaica is a great place to do business.

Mr. Omar Davies, can you hear me? You are taking 25 per cent of my earnings; Cable and Wireless, on your behalf, takes another 15-20 per cent on my phone bill. When are you going to give me a break?

I am, etc.,

SIDNEY ELLIOT

32 Hileah Dr., Kingston 19

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