AA deal concerns Air Ja executive

A top Air Jamaica executive is reporting that multi million-dollar guarantee given to American Airlines to encourage flights to the island may affect the government’s plans to divest the national airline by next March.



Against this background, Paul Pennicook a senior vice president at Air Jamaica is again voicing concerns about the deal.



Under the agreement, the government will pay $324 million to American Airlines if it is not able to have 75 percent of its seats on flights to Jamaica taken up.



Mr. Pennicook wants the Tourism Minister Edmund Bartlett to revisit the agreement and some of the routes that will be serviced by American Airlines.



Mr. Pennicook said the government has not responded to a plan the airline submitted on how to make it more profitable.



The plan was reportedly submitted in January.