Payments to American Airlines less than projected
Friday, 15 January 2010
Tourism Minister Edmund Bartlett has highlighted that payments that could go to American Airlines under the pay to fly deal signed almost two years ago will be less than has been set aside to meet the payments.
After American Airlines in 2008 indicated it will stop flying from Miami, Chicago and Dallas into Jamaica because the routes were unprofitable, the Government stepped in offering a one and a half million U.S. dollar revenue guarantee for each of the routes if flights had passenger loads below 70%.
But performance on the Chicago route has been above expectations, and that means no payments will be made to American for flying from Chicago which means the money goes back to the government.
He revealed that this means that only US$3 million is exposed to the American pay-to-fly deal.
Mr. Bartlett was not able to say how much would be paid in the plan
Friday, 15 January 2010
Tourism Minister Edmund Bartlett has highlighted that payments that could go to American Airlines under the pay to fly deal signed almost two years ago will be less than has been set aside to meet the payments.
After American Airlines in 2008 indicated it will stop flying from Miami, Chicago and Dallas into Jamaica because the routes were unprofitable, the Government stepped in offering a one and a half million U.S. dollar revenue guarantee for each of the routes if flights had passenger loads below 70%.
But performance on the Chicago route has been above expectations, and that means no payments will be made to American for flying from Chicago which means the money goes back to the government.
He revealed that this means that only US$3 million is exposed to the American pay-to-fly deal.
Mr. Bartlett was not able to say how much would be paid in the plan
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