Phillips warns airport revenue securitisation could mortgage Jamaica’s future

Opposition Spokesman on Transport and Mining, Mikael Phillips, MP, has criticised the Government’s decision to securitise future airport revenues, warning that the move could undermine Jamaica’s long-term fiscal flexibility and weaken future airport development.

Speaking during his contribution to the 2026/27 Sectoral Debate in Gordon House on Wednesday, Phillips said the securitisation of revenues tied to Jamaica’s major airports effectively mortgages future earnings to finance current expenditure.

“The 2024–2025 securitisation has pledged government revenue from both the Norman Manley International Airport and Sangster International Airport, fundamentally altering the incentive structure of airport governance for years to come,” Phillips said.

He argued that while airport revenues are being redirected toward financing projects such as the SPARK road programme, major concerns remain regarding airport infrastructure, logistics integration, and long-term operational sustainability.

Phillips noted that the Airports Authority of Jamaica is projected to record a loss of nearly $200 million in the 2026/27 fiscal year, compared to a surplus of approximately $600 million the year before. “The AAJ has historically been a profitable entity, making this downward spiral alarming and indicative of systemic decay,” he said.

The Opposition Spokesman also pointed to recent operational failures, including electrical maintenance issues and hurricane-related disruptions, which he said exposed vulnerabilities within Jamaica’s aviation infrastructure.

He argued that Jamaica risks losing future leverage over airport development and concession negotiations if future revenue streams are already committed. “The central question is whether we have converted a future revenue stream into an asset that truly bolsters national productivity,” Phillips stated.

As part of his presentation, Phillips proposed the establishment of an Airport Economic Zones Policy aimed at transforming Jamaica’s airports into broader logistics and commercial hubs capable of supporting exports, warehousing, and value-added economic activity.

Among the proposals outlined were:

• Development of logistics and warehousing facilities
• Expansion of cold-chain infrastructure for agricultural exports
• Tax incentives for value-added businesses operating within airport zones
• Greater coordination between transport, tourism, and airport authorities

Phillips said Jamaica must move beyond viewing airports solely as passenger terminals and instead position them as strategic economic platforms capable of driving growth and productivity. “We must transform these terminals into genuine economic platforms,” he said. “National development must be the primary driver of the sector.”