Sell Air Jamaica, says Hall

[Dr.Dudd]

Sell Air Jamaica, says Hall
published: Monday | July 11, 2005


HALL - file

JAMAICA PRODUCERS Group Chairman, Dr. Marshall Hall, says Government must accept that Air Jamaica's losses are not likely to be repaid from future earnings and instead of further indebtedness and continued borrowing, it should immediately sell the airline.

He called on Government to stop the bleeding by hugging up the losses and putting the airline for sale.

"We need to do something and quickly," he declared, adding: "The first loss is usually the cheapest and the time has passed to stop the financial rot and get out."

Addressing the installation function for the new president of the Rotary Club of New Kingston, Mr. Athelstan Bellamy at the Jamaica Pegasus Hotel recently, Dr Hall said the sale of Air Jamaica should be done by way of tenders to buyers who have the know-how and requisite capital, with proceeds used to pay down the existing debt.

According to Dr. Hall, Government should neither own nor retain any ownership in a privatised Air Jamaica. Describing himself as a frequent user of the national carrier, Dr. Hall said: "The morale of the staff is at the low end, quality of service has deteriorated and the goodwill of the airline - an important saleable asset, is being destroyed.

On the matter of a possible fallout in the availability of seats into the island which could result from a privatised, smaller Air Jamaica, Dr Hall suggested that a fixed subsidy be made available annually to the world airline trade as encouragement for them to provide these seats into the island from designated gateways.

Dr Hall said governments in countries where tourism underpins the economy must not run airlines as the temptation to allow losses is too great

[RichD]

Re: Sell Air Jamaica, says Hall

sell it to who?

[Tuff Gong]

Re: Sell Air Jamaica, says Hall

How many times?

[Dr.Dudd]

Re: Sell Air Jamaica, says Hall

Afrer him tun billionaire on the subsidies that banana recieve over the tears,him suggesting the government subsidize other private airlines ,many of which are one foot in the bankrupsy to have them do the route,and sell Air Jamaica.
What guarantee would there be that they won't form cartels and pressure for higher and higher subsidies.
I think he is singing fdor his supper
I suppose they will soon call on the government to sell the water supply corporation too because it is costing the country too much,due to nonpayment for water.
Well the availablity of water has saved the country much more than the loss of revinue,in lack of many tropical diseases,that are plauging countries a s close as the Dominican Republic(I won't mention Haiti.
If they think that Air Jamaica is costing the country,let them think of what the loss of the airline would cost.
..and all the mouths that are today balling for it's demise,will be the same ones that will be lambastng them for selling it..
Just liek the savings from under funding education is costing the country in loss of business opportunities.

[evanovitch]

Re: Sell Air Jamaica, says Hall

Originally posted by Dr.Dudd:
[qb] Afrer him tun billionaire on the subsidies that banana recieve over the tears,him suggesting the government subsidize other private airlines ,many of which are one foot in the bankrupsy to have them do the route,and sell Air Jamaica.
What guarantee would there be that they won't form cartels and pressure for higher and higher subsidies.
I think he is singing fdor his supper
I suppose they will soon call on the government to sell the water supply corporation too because it is costing the country too much,due to nonpayment for water.
Well the availablity of water has saved the country much more than the loss of revinue,in lack of many tropical diseases,that are plauging countries a s close as the Dominican Republic(I won't mention Haiti.
If they think that Air Jamaica is costing the country,let them think of what the loss of the airline would cost.
..and all the mouths that are today balling for it's demise,will be the same ones that will be lambastng them for selling it..
Just liek the savings from under funding education is costing the country in loss of business opportunities. [/qb]

the 'savings from underfunding education' is misleading....the government has chosen to undertake measures which afford it veddy likkle money and in the scheme of their thinking, the funding of education is not as high a priority as say, the maintenance of the security of close friends and allies....our own propping up of the atatus quo shall we say [img]/forums/images/graemlins/wink.gif[/img]

internal foreign policy [img]/forums/images/graemlins/laugh.gif[/img] [img]/forums/images/graemlins/blush.gif[/img]

[Tuff Gong]

Re: Sell Air Jamaica, says Hall

Originally posted by Dr.Dudd:
[qb] Afrer him tun billionaire on the subsidies that banana recieve over the tears,him suggesting the government subsidize other private airlines ,many of which are one foot in the bankrupsy to have them do the route,and sell Air Jamaica.[/qb]

Where did he say that?

[qb]What guarantee would there be that they won't form cartels and pressure for higher and higher subsidies.[/qb]

You mean airlines going to Jamaica will form Cartels just for the Jamaican market?
As to demanding subsidies isn't this what Air Jamaica is doing now?

[qb]I suppose they will soon call on the government to sell the water supply corporation too because it is costing the country too much,due to nonpayment for water.[/qb][ QUOTE ]

The GOJ have far advance plans to privatize water, at least the aspects of it that it can privatize with the least possible political fallout.

[ QUOTE ]
[qb]Well the availablity of water has saved the country much more than the loss of revinue,in lack of many tropical diseases,that are plauging countries a s close as the Dominican Republic(I won't mention Haiti.[/qb]

Apparently you have not been reading the news, to see where the Government is cutting off poor communities right and left because the Government cannot fund the water purification and delivery services properly.

[qb]If they think that Air Jamaica is costing the country,let them think of what the loss of the airline would cost.
..and all the mouths that are today balling for it's demise,will be the same ones that will be lambastng them for selling it..
Just liek the savings from under funding education is costing the country in loss of business opportunities. [/qb]

So millions of dollars in losses by air Jamaica is well worth it then?

[RichD]

Re: Sell Air Jamaica, says Hall

Originally posted by Tuff Gong:
[qb]

Originally posted by Dr.Dudd:
[qb] Afrer him tun billionaire on the subsidies that banana recieve over the tears,him suggesting the government subsidize other private airlines ,many of which are one foot in the bankrupsy to have them do the route,and sell Air Jamaica.[/qb]

Where did he say that?
[/qb]

[ QUOTE ]
Dr Hall suggested that a fixed subsidy be made available annually to the world airline trade as encouragement for them to provide these seats into the island from designated gateways.[ QUOTE ]



look at the experience of the eastern caribbean with american airlines .....

[Wahalla]

Re: Sell Air Jamaica, says Hall

Actually I actually beleive that a private airline could operate profitably in Jamaica.... If I had about 100 million I would set up a airline operating into Jamaica.... Small with a few profitable routes.. Miami, London.. Grow it slowly. I am not talking aboout buget airlines but some where in between. Do the Miami run based on Buget, London based on long haul. Lease aircraft. third party as many eservices as possible. multi tasking employees that did not seem to happen with Air Jamaica...

The social grouping that but as a strick buisness.... Minimising costs... And strickly private sector no subsidies.... I beleive it is possible and other airlines are taking market share as we speak...