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Air Jamaica to Cut Four Major MarketsJanuary 28, 2009 By: Joe Pike
Air Jamaica is taking drastic measures by cutting out markets that haven’t returned profits for the famous Caribbean airline. The victims are Atlanta, Los Angeles, Grand Cayman and Miami while Air Jamaica has also discontinued service between Jamaica and Barbados and between Jamaica and Grenada. All of these moves will be effective as of February 26. This will result in the closure of the affected stations and reductions in the work force.
Air Jamaica's new 2009 Business Plan calls for the airline to exit loss-making markets and revisit schedules in others; to improve aircraft utilization by more than 25 percent; and to execute an efficiency plan that will improve productivity and bring Air Jamaica’s unit costs in line with international norms.
“This is a pivotal year for Air Jamaica, as we must become a lean and efficient airline to survive these difficult times,” said Bruce R. Nobles, president and CEO in a written statement. “This Business Plan requires a singular focus on rationalizing operational, infrastructure and overhead costs.”
Air Jamaica’s new schedule has 218 weekly flights to 14 destinations, with service between Jamaica and Toronto, New York , Chicago, Baltimore, Philadelphia, Orlando, Fort Lauderdale, Curacao, Nassau, and Havana, as well as service between New York and Barbados and New York and Grenada.
“In our 40-year history as Jamaica’s flag carrier, this is without question our most challenging time,” Nobles said. “Even tougher times may be ahead, but I believe that we have the energy and imagination required to become the kind of airline that will have a future for many years to come.”