Jamaican Finance Minister Says His Government Remains Committed to Air Jamaica

Finance and Planning Minister Omar Davies tried to dissipate the dark clouds looming over the debt ridden national airline Air Jamaica and reassured the public that the Government remains committed to keep the carrier on the air, though he admitted to the carrier´s financial woes.

Davies, who was closing last Wednesday the 2005/2006 budget debate in Parliament, told the House that in terms of the total losses incurred by the airline during the period of privatization, there had been references to figures of US$830 million, US$675 million and even US$1 billion.

He said research carried out on the actual losses during the period of

privatisation showed a total loss of approximately US$675 million, including an un-audited figure of US$98 million for 2004.

The Finance Minister reported in the three months since Air Jamaica´s

ownership reverted to government it has lost US$30 million and contributing to the loss were accelerated safety checks as a result of the ruling of the Jamaica Civil Aviation Administration.

He said that the interim board that has been appointed for six months had specific instructions to present Cabinet with a business plan which would require a maximum annual subsidy to the airline equivalent of US$30 million.

The Government resumed full ownership of Air Jamaica in December 2004 after holding a 25 per cent stake in the carrier for a decade, when the Air Jamaica Acquisition Group led by businessman Gordon "Butch" Stewart held majority shares.