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Is Air Jamaica headed for closure???
When Hurricane Ivan the Terrible hit the Cayman Islands and left hundreds of Jamaicans in panic there following the battering Jamaica had received, something must have struck most of them forcibly. It was that their own national airline ran seven special evacuation flights to bring them home. No foreign airline was about to do any similar rescue, even if those were not preoccupied with their own survival concerns.
Many of the Cayman resident Jamaicans, I am reliably informed, could not afford the air fare. But Air Jamaica brought them home nevertheless. The point is not made to praise Air Jamaica's charity. It is simply a reminder that we take a vital national asset for granted. For welcome though the charity was, it is the survival of our economy which puts Air Jamaica's sterling worth in perspective.
Consider this. It is our tourist industry that is at the heart of our economy, being the greatest earner of foreign exchange.
And it is Air Jamaica which is at the heart of our tourist industry. The airline brings in 51 per cent of all visitors to the island. That is, our national airline brings more visitors to our shores than all the other airlines combined. On that basis, the collapse of Air Jamaica could be the collapse of, or very serious damage to, an ailing economy pressed with debt nearly two-thirds of its revenue intake. Yes, there are other airlines serving our country. All things being equal, they could rush in to fill the void of an Air Jamaica demise. But all things are not equal, especially after the infamous event of 9/11 and its disastrous effects on the airline industry.
Major airlines like American Airlines and Delta Airlines are facing survival problems requiring bailouts. Air Canada is threatened with bankruptcy. Now, guess where those airlines would cut their service first, in deciding whether to serve Jamaica or their own larger corporate market? It takes no genius to see the obvious. And if you are too simple-minded to see, remember that at least one major airline cut back service to the Eastern Caribbean the moment it was not sufficiently profitable. The Cayman Islands rescue mentioned above, reminds us what it means to have a national airline obligated to its citizens. Air Jamaica has shown itself responsible to serve even under conditions where foreign commercial airlines would fold or just quit.
Yet there are many among us who fail to see the simple logic of dependence on a national rather than a merely commercial airline. The logic is, we have a heavy dependence on foreign exchange and thereby on tourism, and thereby on a predictable and reliable national airline service. Failing to see the bigger picture, such critics berate the national airline for needing government assistance to survive. Never mind that it is strongly in the government's interest to maintain a viable economy by protecting its economic bedrock. Those myopic critics even fail to see that a loan guarantee by the government to our national airline is not the same as a cash bailout, which several airlines in the US received from the American Federal government after 9/11. Our Air Jamaica took salary cuts especially among the higher staff hierarchy but preserved the jobs of all staff. It did not add many to the unemployment line.
Commendably, what the national airline has done, is set itself to grow out of its indebtedness. Its setback in the progress it was making toward this goal is the same kind of setback the entire airline industry is now experiencing. And it is not over by any means. The recent steep rise in oil prices on the international market will continue to challenge the efforts of management in its push for profitability. I understand that Air Jamaica budgeted for jet fuel being at an average price of US 87 cents per gallon. Currently however, the price is averaging US$1.50 per gallon and rising. That means nearer twice the expenditure budgeted for and translates into J$2 billion more! You and I know that the airline cannot jump its ticket prices by the same ratio and survive the competition.
So the picture calls for understanding and sympathy from all of us potentially affected. And it calls even more for understanding and sympathy from those most directly affected. In that regard, it is disturbing to see what appears to be the intransigent position of the Air Jamaica pilots in their demand for higher pay. We hear that salary demands exceed a Jamaican prime minister's salary, and more significantly that of many of their foreign counterparts. Now, we value our pilots highly and agree they deserve to be well paid. But let me remind them of big-name airlines that are no more, and of former pilots begging for jobs in a depressed industry.
Remember the fate of Eastern and Avianca airlines. Note both Delta and Air Canada are now facing bankruptcy. Air Jamaica is not immune.
An Air Jamaica staff member tells me that it isn't that our pilots are not well paid. Rather, it is their need to meet a certain upscale lifestyle. How short-sighted of them if that is true. Our airline is proving its sterling worth. Its pilots must see the bigger picture and do no less. Jamaica Observer
I have heard rumours that AirJamaica will be closing down In an effort to lower its pilot costs. The airline has to lay off all its pilots and rehire them at a lower salary. If all the flights were so full and the airline was making all this money, where is it??
If AirJamaica has no money, then why is it flying relief missions for other countries???
Last edited by Domo : 10-02-2004 at 09:54 AM.
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