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Old 07-09-2009, 09:53 AM
Gets Weekends Off
RemoveB4flght's Avatar
Joined APC: Aug 2008
Posts: 500

Originally Posted by WorldTraveler View Post
This is just one more example of how airline management has figured out a way around cross border ownership restrictions.

Like it or nor, the Jamaican government will have to do some kind of deal. Spirit will likely have to offer some sort of labor protections. In lieu of this deal, the future for Air Jamaica, looks a lot like Alitalia.

You can't have your cake and eat it too.. Obviously there is a well founded concern that new ownership will bring about sweeping changes to the company structure, including job cuts. If I were a rank and file employee of Air Jam I would be nervous too.

I don't wish job loss on anyone, but you have to look at the numbers. Air Jamaica was privately owned for nine years before it was re-nationalized back in 2005.

At that time, it posted an operating loss of 90 million for the year, and since then that operating loss has grown to 150 million a year, which is subsidized by the government. That doesn't include an additional 600 million in outstanding loans.

On the other hand, 2009 has shown stellar performance this year in terms of load factor and cancelled flights.

The airline is begging to be streamlined.. and while national identity and airline job loss would appear to be the concerns in the headlines, the country is so dependant on tourism that I would imagine the real concern would be instead to increase frequencies and explore new markets.

Ending the government subsisdized losses and increasing the amount of tourists setting foot on their soil will far outweigh the negative impact of job losses due to streamlining the business model... IMHO
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