Friday, October 26, 2007

Air Jamaica got significant benefits for Heathrow slots

IN A letter published in the Tuesday, October 23, edition of The Gleaner, Jean Robertson references a slot transaction between British Airways (BA) and SN Brussels and suggests that the transfer price paid by BA was significantly higher than the price achieved by Air Jamaica in their transaction with Virgin Airways.

Unfortunately, Ms. Robertson misinterprets the reporting of the BA/SN Brussels transaction in that she assumes that seven slots represent one slot per day by seven days in the week. The measurement of 'slot prices' is based on the number of slot pairs per day, therefore, the seven slot pairs referenced in the BA/Brussels transaction in reality equates to seven separate take-off and landing slots per day. Ms. Robinson's misinterpretation is not uncommon; others unfamiliar with the industry have done the same.

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