Jamaica's Airport Development Strategy

Government Policy
• Development and Modernization of Jamaica’s two international Airports.

• Privatization of the Airports

- in keeping with international trends and the need to attract private capital to finance the required levels of expansion and development at the international airports; to cope with projected growth in aircraft and passenger traffic. Privatisation commenced with the Sangster International Airport; critical for Jamaica’s tourism infrastructure.

• Self-financing commercial enterprises

The international airports are organized and managed as self- financing commercial enterprises.

• New Economic Regulatory Framework

A critical requirement of the privatization process was the need to establish the requisite legislative framework to facilitate operation of the airports by a private company. The Airport (Economic Regulation) Act, 2002 provides for the economic regulation of the international airports by the Jamaica Civil Aviation Authority; which is responsible for the setting of aeronautical charges under the Act.

Section 6(1) Airport (Economic Regulation) Act, 2002 makes provision for the introduction of an Airport Improvement Fee (AIF) which was implemented on 2003 February 15. The proceeds from the Fee are being placed in a separate Airport Expansion Fund specially designated for each airport. Disbursements will only be made to finance capital improvement projects at the respective airport, as approved by the Minister of Government responsible for these matters.

The Airport (Economic Regulation) Act, 2002
• Scheduled Airports - SIA & NMIA

The Norman Manley International Airport and the Sangster International Airport have been declared scheduled airports and are subject to economic regulation by the Jamaica Civil Aviation Authority.

• Permission to Levy Airport Charges
• Approved Airport Operator

The international airports are currently operated under a concession agreement with Airports Authority of Jamaica as follows:

NMIA Airports Limited, a wholly-owned subsidiary of AAJ, operator of the Norman Manley International Airport, located in the nation’s capital city of Kingston.

MBJ Airports Limited operates the Sangster International Airport located in Montego Bay.

Sangster International Airport

• Departure Tax Fund
• Sangster International Air Terminal Ltd.
• Capital Development Programme
• 1998 Cabinet Decision
• Privatisation with Concession Agreement

The privatization of Sangster International was completed on April 12, 2003 when the private operator (MBJ Airports Limited) took over the operation of the airport from AAJ.

Link to section under AAJ’s Our Business re
“The airport has been privatized to a consortium of investors ...”

Norman Manley International Airport:

• Formation of NMIA Airports Limited
• Concession Agreement
• Master Plan & Capital Development Programme
Master Plan completed 2003 October.
Capital Development Programme commenced in 2004.
• Privatization Pending