Jamaica Paying Out Millions to Keep AA Flying to the Island

Tourism is one of the biggest revenue earners in Jamaica and the government wants to ensure that their market is not affected by cuts in airlift and, to this end, the Department of Tourism is paying out millions to American Airlines (AA).

A report in the Gleaner newspaper states that the government could pay as much as $4.5 million (J$324 million) over the next 12 months to AA to ensure that it does not cut flights to Jamaica.

American Airlines Boeing Co. MD-80 jets are parked on the tarmac. Bloomberg Photo
Expensive jet fuel and a soft United States economy have caused American Airlines to announce cuts in daily flights out of its Caribbean hub in Puerto Rico from 93 to 51 this month.

Flights to Antigua, St Maarten, Aruba and the Dominican Republic have already been slashed.

The Tourism Department has projected a sharp increase in visitor arrivals, and the authorities are trying to ensure that the airline continues its flights into the island and are willing to pay the airline to keep landing in Kingston and Montego Bay.

The cash guarantee is being financed by the Tourism Enhancement Fund and its chairman, Godfrey Dyer, is defending the deal, which was negotiated by Tourism Minister, Edmund Bartlett.

Dyer told the Gleaner that American Airlines was selected because it had more capacity than any other airline coming to the island.