T. Ransparent, Analyst
KOOL 97 FM, a commercial radio station, is owned by the Government through Aeronautical Telecommunications Limited (Aerotel).
In the year to March 2007, KOOL had an income of $32 million, expenses of $37 million and so made a loss of $5 million.
In 2006, it broke even with slightly higher total income.
A portion of revenues, $12 million, was earned from the leasing of airtime to Nationwide News Network and the rest from advertising.
The Nationwide lease was discontinued with the switch of the network to Radio Jamaica's AM band.
More transimitters
Kool's station, sales and marketing manager is Tomlin Ellis, who presumably answers to Aerotel acting general manager, Linvol Stephens.
Ellis reports that KOOL provides signal coverage to about 90 per cent of the island from its transmitters in Coopers Hill, Ayr Hill, and Kempshot and at Norman Manley, and that the station was hoping to put up a transmitter at Shaftston in Westmoreland, and Castle Mountain, Portland.
He describes difficulty in getting adequate advertising, but is proud that KOOL 97 FM improved its audience and moved up in the rankings from number 10 to number nine among the other 16 radio stations in Jamaica.
AEROTEL
Aerotel started as a wholly owned subsidiary of the Civil Aviation Authority.
Its job is to ensure the safety of aircraft and passenger within Jamaica's Flight Information Region. It also offers services to other private or public organisations with telecommunications services, including the Meteorological Office.
Aerotel earns about $170 million per annum from charges to airlines that fly over Jamaica.
This column cannot evaluate the worth of services provided but it does appear that salary costs are escalating at a frightening rate from $41 million to $52 million in 2007 - that's a 27 per cent increase in one year.
Commendations
Having said that, Aerotel should be commended for publishing a table of salaries paid to the top-nine executives.
These amounts do not appear out of line with the cost of retaining good personnel - although these salaries would be low for 2008.
Of course, that assessment is made without taking into account the $60 million paid as management fees. These fees increased by 50 per cent in 2007.
If any of this money goes to senior executives, then the executive salary table is misleading.
Recommendations
1. KOOL 97 FM should be divested. It is not making profits and the Government should concentrate its activities on health, education and national security.
2. If Aerotel has surplus energy and cash, then let it run some other parts of Government's communication systems for the police, hospitals, etc.
3. Easy money earned from charging airlines that overfly Jamaica should not be blown on loss-making commercial activities that others can run.
4. KOOL should repay loans to its parent company.
