Sale of Heathrow slots questioned.(JAMAICA)

0 Comments | Caribbean Update, June, 2008

The government has asked the Contractor General to investigate the sale of seven Air Jamaica Heathrow slots to Virgin Atlantic on March 10. The slots were sold for US$10 million, reports JIS (April 26, 2008). Minister of Finance and Public Service Audley Shaw said, "The sale revenue given up is too large, potentially US$364 million, for us to not fully investigate this matter." He pointed out that "US$364 million or J$26 billion could have paid off 75% of the US$473 million liabilities of Air Jamaica, including the US$325 million bond for which this Budget has to find $3.7 billion this year alone to service this debt." Shaw also noted that "the process was not subject to public tender.

It appears that only two companies had been courted, British Airways and Virgin."