Reid

It seems that the Government's insistence on maintaining a percentage in the national carrier, despite its decision to divest the airline, is strictly related to its conviction that this will allow it to exert a certain level of control over the tourist industry as well as a display of sentiments and emotional pride.

Although as Jamaicans, especially the diaspora, we feel a certain level of connectivity and pride in flying Air Jamaica, it comes at too great an expense and is a luxury that this country cannot afford at this time.

Furthermore, a meagre 20 per cent holding does not satisfy the level of control that is necessary to shape the future and profitability of the airline, but on the other hand, could make government responsible for future 'bail-outs'.

The history of Air Jamaica's performance over the years has shown that the airline has not really grown the market, but has thrived on increased market share based on added capacity and increased frequency on various routes. This, however, has been achieved at the expense of other carriers.

In fact, at no time did an increase in passenger arrival exceed the global growth in tourism.

Considerable savings

It, therefore, means that if Air Jamaica is taken out of the equation, not withstanding at considerable savings to the Government and people of Jamaica, you would find that the international carriers would be more than happy to fill the void created. If we have a thriving tourist trade, international carriers will seize the opportunity of bringing visitors to Jamaica to participate in a viable industry.

It is felt that Air Jamaica is being used to subsidise the tourist industry, however, the principle of globa-lisation dictates that countries should choose industries that they have a competitive advantage in and develop them and that where there is no competitive advantage, those industries should be dispensed with.

There is no question that we have a competitive advantage in tourism, we should therefore focus our efforts on building that industry and not subsidise it, as this is against all the principles of WTO.

There are other mechanisms at the Government's disposal to exert control over the tourist industry than having to bear the costs of a losing entity.

We need to focus our energies on eliminating crime, cleaning up our cities and towns and restoring law and order to our country. There has to be a wholistic approach in how we develop and sell 'brand Jamaica', our athletes having given us a head start with their performance at the Olympics and very recently in Berlin.

Social intervention programmes

Of the billions spent on Air Jamaica's debt, if we had used just a fraction to tackle the issue of crime and embark on social intervention programmes, coupled with a more vigorous 'sprucing-up' campaign which the minister of tourism has started, perhaps our shores would be now overflowing with tourists.

Haven't we learnt our lessons from previous attempts at privatising the airline which turned out to be a serious economic burden on the Jamaican people? Is there no government that has the courage to fully divest themselves of Air Jamaica? It is strongly felt that if the Government does not retain an interest in the airline, the buyer will have no choice but to ensure that the airline is profitable.

We all love Air Jamaica and share the sentiment that it gives us a sense of pride to see that small bit of Jamaica flying, but we have to ask ourselves, at what cost?

Our most beloved prime minister has summed up the situation well for us, do we absorb a one-off $200m privatisation costs, or do we continue to carry the airline's debt at a possible $150m annually?

It shouldn't take a 'rocket scientist' to figure this one out.

Pauline Reid is immediate past president of the Montego Bay Chamber of Commerce and Industry. Feedback may be sent to columns@gleanerjm.com.