Air Jamaica Revamps Operations to Reduce Losses

Air Jamaica is revamping its operations to reduce losses, and has unveiled a three-point business plan, which is aimed at keeping the company operating throughout this year, and to position it on a path towards financial stability.

“This is a pivotal year for Air Jamaica, as we must become a lean and efficient airline to survive these difficult times,” said Air Jamaica’s President and Chief Executive Officer, Bruce Nobles.

He told JIS News that the business plan, which places a “singular focus on rationalizing operational, infrastructure and overhead costs”, will include eliminating cash losses by exiting loss-making markets, revising all schedules, improving aircraft utilization by more than 25 per cent, and executing an efficiency plan that will improve productivity and bring Air Jamaica’s unit costs in line with international norms.

Effective February 26, 2009, Air Jamaica will exit Atlanta, Los Angeles, Grand Cayman, and Miami routes, and will discontinue service between Jamaica and Barbados and Jamaica and Grenada. This will result in the closure of the affected stations and reductions in the work force.

With these changes the airline’s fleet will be reduced to nine aircrafts, which is the appropriate number required to efficiently operate the new schedule. The airline will restructure existing leases and negotiate aircraft returns to accomplish this result.