No golden parachute for Air J incompetents, please

Wednesday, May 05, 2010

Caribbean Airlines Limited (CAL) purchased Air Jamaica to become the region's largest airline, with the Trinidadian Government injecting US$300 million to streamline the operation, following CAL's designation as the national carrier of Jamaica.

This is a sign of the times as the global economic crisis has left very few profitable airlines. Indeed, United Airlines and Continental Airlines have merged to create the world's largest airline.

An airline of the size of Air Jamaica will find it very difficult to realise the economies of scale and scope which would make its operations cost-effective. In the quest for viability, the excellent work of the pilots and cabin crew was let down by poor management and ineffective boards of mostly political appointees. Some board members were repeatedly reappointed, despite the unprofitability of the operations.

Air Jamaica, one of the finest airlines in the world in terms of its flight operations, suffered because it had too many locals who were not specialists in airline management, or foreigners casted off by foreign airlines. Management consistently refused to consult the pilots and crew and ignored their suggestions about improving the efficiency of the airline.

How routes were chosen, how they were operated and how they were mismanaged remain an enigma. It is to be hoped that those who presided over the demise of Air Jamaica will not be getting a 'golden parachute'.

Successive governments of Jamaica (GOJ) did not spend their travel budgets with the airline that it owned, although it was Jamaica's designated national carrier. US Government officials are required by law to travel only on American-owned airlines. Imagine the amount of money spent by the GOJ on air travel on other airlines on routes which were flown by Air Jamaica.

The failure to use Air Jamaica must also be blamed on the travelling public and the worst offenders were the ministers of the GOJ. The most egregious conduct and a lasting indictment is that of the Ministry of Foreign Affairs and Foreign Trade.

Air Jamaica was deprived of hundreds of millions of US dollars over its entire history. Many Jamaican travellers abused the privilege of having a national airline by being late and travelling with too many bags.

The establishment of a single Caribbean airline has been much discussed since the days of the West Indies Federation. But like everything else in the Caribbean Community (Caricom), the critical decisions were postponed by lack of political leadership and narrow nationalism.

We acknowledge the pain which all Jamaicans feel over the sale of the airline. Time will pronounce on the wisdom of this most unpopular of expedient financial decisions that the Bruce Golding Government has had to take.

Prime Minister Patrick Manning is taking flak at home for what is seen elsewhere as the action of a true regionalist committed to Caricom and helping to realise the single Caribbean airline dream. He has had to close down BWIA and merge it with Air Jamaica and avoid the permanently bankrupt LIAT.

Bottomline, we are all to blame for what has happened to Air Jamaica. For a brief decade -- 1994 to 2004 under Mr Gordon 'Butch' Stewart -- we saw a flicker of hope, a sign of the possibilities of a profitable, well-run Air Jamaica. Alas, that too did not last, thanks again to our politicians.

Now, because of our profligacy, pragmatism must prevail and we are forced to swallow our pride.

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COMMENTS (9)

astley merton
5/14/2010

"with the Trinidadian Government injecting US$300 million" ? Is it that theya re so stupid or that your reporting is inaccurate?

Beresford Davidson
5/7/2010

Journey of the unemployed
By Beresford A. Davidson, SEC
0. An effort for Commissioned work derives naught to dust;
1. My mind, chaste and skilled, actualizing prodigious things;
2. To transform decay into usefulness rejecting rust;
3. By whatever fain that works, as pleasure in fain brings
4. Extrapolation of inner beams, unveiling cloudy sight
5. Upon this sweaty yoke of a man where infinite freedoms be;
6. Creating thunder and downpour from spheres of amazing light,
7. That peep in the dark, illuminates insight, foresight and hindsight to see,
8. Depth into this tunnel, with this lamp walk ye, as it will guide
9. Your path into uncertainty, when birth elicits sweat,
A. From devilish zeal that caused an earnest he to slip and slide,
B. Though seeking heavens will, receiving only heavenly breath,
C. This much I give and from earth, this much I got; your uttermost thus I see;
D. Thank God for diligence, patience and love that sustain this life in me.

nervous investor
5/6/2010

Shauna Taylor asks ".....what will now be used (sic) with the funds that were originally designated for 'saving' the airline?". What funds Ms Taylor? So far as I know NO funds are allocated to "saving" the airline but rather to subsidizing the ongoing losses until the sale.
'
Again I ask What funds Ms. Taylor? So far as I can see, the Government has had to take over something like J$90,000,000,000 (yes some 90 Billion) of Air Jamaica debt plus pay the shutting down expenses and redundancy.
'
Again I ask What funds Ms Taylor? The budget is quite clear, to meet its operating expenses, the Government is borrowing some $175 billion this year. Any savings that might materialize (unlikely) would not be money available to spend but would simply reduce a little of the borrowing requirement.

Shauna Taylor
5/5/2010

So now our Golden Bird has been sold. Question is...what will now be used with the funds that were originally designated for 'saving' the airline? Will it now be invested into the people of our nation or like most other things, be mis-mangaged or even pocketed by our so-called leaders? How will we as Jamaicans truly benefit? Will it all have been in vain?

Jay Brown
5/5/2010

The sale of Air Ja was too much for Captain Russel Capleton - I understand he suffered a massive heart attack and died early this morning

D Ranks
5/5/2010

Suddenly this newpaper is blaming every thing but the kitchen sink for the demise of Air Jamaica. It was probably mismanaged, but Jamaican flyers are not to be blamed; they just took advantage of the policies of Air Jamaica, that is all they did, and they did buy their tickets. What is going to be different with CAL? They have about the same policies Air J had, in fact most airlines operating today have. If people fail to take CAL and use airlines like Airtransat what is going to happen to the routes the CAL is taking over? They are not even big enough to compete with American Airline in its present state; what about after they join up with that other airline. Or what will happen when the Trinidad government cannot afford to pump money into CAL? The opposition there is already screaming about this deal. Oil runs out, you know! and the price fluctates like the weather, so we might see our traditional route being cut. I think I will find alternate airlines to travel.

JAM JB
5/5/2010

I find it interesting that the writer claims the Pilots and crews (whoever they are) as the only ones that had ideas on how to save the airline. Suffice it to say that they were many times a big part of the problem. The editor needs to do some more homework about JM and its problems before his next article.
Quite correctly, we as Jamaicans helped to destroy it as well.

Jaye Stone
5/5/2010

Please do not dare to insult Jamaicans with this article.

K Davis
5/5/2010

The sentiment behind this editorial is understandable. But the Editor should avoid the use of the whitewash brush. On the one hand, the GOJ is often constrained in selecting a carrier for a trip by the cost guidelines; on another hand, there is no legal requirement that the Government officers MUST fly only on Air Jamaica. Note also that in many cases, those travelling are going to destinations beyond Air Jamaica's routes travel for which is better facilitated and usually more cost effective if another carrier is used.
That being said, when Air J finally goes - I will surely miss it.

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No golden parachute for Air J incompetents, please