( L - R ) Pennicook, Cummings

The Jamaica Hotel and Tourist Association (JHTA) has endorsed the Government's controversial multimillion-dollar deal with American Airlines.

However, Paul Pennicook, a former JHTA vice-president and senior vice-president of Air Jamaica, is stepping up his calls for the Government to renegotiate at least one aspect of the arrangement.

Subject of a probe

The deal, a conditional guarantee to the airline, is now the subject of a probe by the Contractor General and could also be investigated by the Fair Trading Commission.

But that has not stopped the JHTA, which on Tuesday declared its full support for the US$4.5 million agreement negotiated by Tourism Minister Edmund Bartlett.

"Minister Bartlett must be congratulated for his quick response in making this ground-breaking deal to not only retain American Airlines' existing Jamaica flights but to ensure that there is increased capacity to our shores," said Wayne Cummings, president of the JHTA.

According to Cummings, as a legacy carrier, American Airlines has more reach than all other airlines in the Caribbean.

Cummings further argued that the deal was the envy of countries which now have empty slots in their airports to show for their failure to properly anticipate the crisis in the aviation market.

He said the JHTA's backing of the American Airlines deal should not be viewed as a lack of support for Air Jamaica, which it has repeatedly endorsed as having a critical role to play in the delivery of seats into the Jamaican market.

"In fact, we have been strident in demanding that the Government provides the support behind Air Jamaica's gateways and ensures the airline's overall viability," Cummings added.

He said the JHTA's demands relating to the airline have been met with actions which confirm that Air Jamaica's main focus at this time is its divestment.

"We are all emotionally connected to Air Jamaica and must do everything for the continuation of its presence in carrying passengers to Jamaica but, emotions aside, we have 30,000 rooms to fill that require air seats," Cummings said.

But Pennicook said the facts did not support claims that Air Jamaica would not be able to meet the increased demand.

"The fact is that, in 2007, we had 1.7 million stop-over visitors come to this country. Air Jamaica carried 523,000 of those visitors. American Airlines, the airline which is being given this revenue guarantee, carried 260,000 of those visitors," he said. "I would like someone to tell me then why is Air Jamaica too unreliable to protect the tourism industry."

Insulting

According to Pennicook, the US$1.5 million being paid to American Airlines on the Chicago route is insulting.

"We are going to continue to appeal that the deal be revisited, in as far as Chicago is concerned, because, not only do we fly that route but we have excess capacity on the route," Pennicook argued.

According to Pennicook, for the last three years, Air Jamaica has averaged a 64 per cent load factor on the Chicago route, leaving it with space to carry many more passengers.

The Government will be paying American Airlines if its flights leave with more than 65 per cent but less the 75 per cent of the seats sold.