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Contractor General probes airline deal
published: Tuesday | September 9, 2008

The Ministry of Tourism has been given 14 days to provide the contractor general with full details of a controversial multimillion-dollar deal with American Airlines.

Contractor General Greg Christie yesterday reported that he had initiated a probe into the deal, which was inked by the Government more than two months ago, and had given the tourism ministry until 4 p.m. on September 19 to provide the information.

Christie started the investigation last Friday, two days after The Gleaner first reported that the tourism ministry had signed a US$4.5-million revenue guarantee with the airline.

In a letter to Jennifer Griffith, permanent secretary in the tourism ministry, Christie demanded an executive summary outlining the genesis and nature of the agreement and the manner in which it had been negotiated.

Names and titles

The contractor general is also seeking information on the names and titles of all the persons who were involved in the negotiation, the procurement processes and the approvals which were received to facilitate the agreement.

According to Christie, the tourism ministry will also need to provide his office with copies of all Cabinet submissions and decisions regarding the matter, and copies of all National Contracts Commission and Cabinet approvals of the deal.

In addition, Christie has requested copies of all correspondence between American Airlines and the Government regarding the deal and copies of the minutes of all board meetings of the Tourism Enhancement Fund where the agreement was discussed.

Christie's announcement came shortly after The Gleaner confirmed that the Fair Trading Commission (FTC) could also start a probe into the deal.

According to sources, the issue is to be examined by the FTC this week, at which time a decision will be made on whether a formal investigation should be launched.

Unfair to Air Jamaica

The sources said the FTC would seek to determine whether the agreement was unfair to Air Jamaica or any of the other airlines which fly to Jamaica.

Air Jamaica officials have already condemned the agreement, which they say gives American an advantage, particularly on the routes which both airlines serve.

Last week, tourism officials confirmed that they had agreed to provide American with a conditional guarantee, which will be paid at the end of November 2009 if the airline fails to fill an established number of seats on new flights out of three North American gateways - Chicago, Dallas and Miami.

In defending the deal, Tourism Minister Edmund Bartlett argued that it provided global connectivity with American, offering thousands of flights from feeder cities across the United States, connections from India through the hub in Chicago, and from China, through the hub in Dallas.

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