Air Jamaica Still Trapped in Financial Woes

Faced with losses of up to US$847 million and total liabilities of US$890 million, Air Jamaica has said it will not rule out any option, including retrenchment, in a bid to reverse the financial downturn of the debt ridden airline.

The company´s chairman Vin Lawrence said the airline is desperate to cut costs and reiterated that members of the management team have accepted salary cuts ranging between 18 and 30 percent.

But he said while negotiations with other groups were nearing completion, others were refusing to accept the new wage packages being offered by the struggling airline.

Dr. Lawrence said that negotiations with the pilots association, which started under the former management of the airline, have been drawn out and tough and the airline´s management is determined to complete the negotiations in the shortest possible time.

Air Jamaica said it has lost millions of dollars because the United States Federal Aviation Administration (FAA) has grounded several of its planes. The airline said the situation could further worsen its financial situation.