Final flight April 12

Date set for take-over of Air J by Caribbean Airlines

Thursday, March 04, 2010

EMPLOYEES of the cash-strapped national airline, Air Jamaica were yesterday advised that their jobs would be made redundant on April 12, the 'target' date for Caribbean Airlines to take over its operations.

It was the clearest indication that the sale of the national carrier to Trinidad's Caribbean Airline was a done deal, which means renewed attempts recently by the airline's workers to acquire the company, through the Jamaican Airline Pilots Association, were futile.

Air Jamaica President and Chief Executive Officer (CEO) Bruce R Nobles, in a memo to staff, said members of the transition team from Caribbean Airlines were currently at the airline completing due diligence work which includes a reviewing of information about employees, company policies, as well as conducting interviews and psychometric testing.

"Additional information regarding interviews and jobs will be made available shortly," Nobles advised the Air Jamaica workers.

The divestment, said Nobles, has evolved to a position where certain decisions have been taken and associated timelines determined.

"The current transition proposal is to continue to operate Air Jamaica utilising our existing fleet under contract to Caribbean Airlines for perhaps as long as one year. Caribbean Airlines will be financially responsible for the transition operation after the transaction date," Nobles told his staff in the memo, a copy of which was obtained by the Observer.

He added: "In order to operate the 'transition' Jamaican operation, a new company will be formed to hire the personnel required. Those employees will be hired under fixed-term contracts. The number of jobs required and the terms and conditions of employment are still being finalised."

Nobles said Air Jamaica was working diligently to develop a structure that will ensure that customers can continue to book and fly to and from the island with confidence, and as such was working to develop a "seamless" transition.

The airline's objectives, said the CEO, was first to ensure a seamless transition for customers, minimise the impact on its family and third to fairly deal with all the outside companies which have done business with Air Jamaica over the years.

He also made it clear to staff that the Government was not in a position to continue providing financial support for Air Jamaica.

"I know that I can count on your co-operation and support during this critical time in the life of Air Jamaica, and I look forward to discussing this in more detail with you as plans become more definitive," Nobles told the Air Jamaica staff.

In 2008 Government appointed International Finance Corporation -- the private sector arm of the World Bank Group -- to serve as lead advisers on the divestment of Air Jamaica.

The Government said that one of the major aims of the divestment was to ease the burden on the national budget of the more than US$150 million per annum in losses by the airline.

Over the past decade, Air Jamaica has lost more than US$1 billion and the company is facing debts of more than US$500 million.

In a statement to Parliament on February 10, Prime Minister Bruce Golding said that of the J$27 billion being earmarked for Government to pay the airline's creditors, US$25 million (about J$2.2 billion) of this figure was being set aside for redundancy payments for the more than 1,900 workers.

Additionally, the airline is currently in negotiations for the sale of the five floors it occupies on its Harbour Street building in downtown Kingston.

Proceeds of this sale, Government says, will be used to help continue operations over the next few months.

The airline had previously announced that effective March 9 it would cut its service to the Caribbean islands of Grenada, Curacao, Nassau and Havana.

The airline had also announced that by April 12 it will operate 161 weekly flights between Jamaica and five cities, with daily service to Baltimore, Philadelphia and Toronto, three daily flights to New York (JFK) and four daily flights to Fort Lauderdale.

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COMMENTS (21)

4/5/2010

How can we not blame the Government for not doing more to clean up the mess in Jamaica? We are tired of the corruption of Government and private businesses and the crime that continue to affect the lives of the innocent. What about proper trading and spending? Why do we continue to let the sweat and blood of our foreparents go in vain? Heart broken decendant of Jamaica.. VB

winston mills
3/5/2010

This is the best move for Air J. Why burden the taxpayers, the majority who might have never travel or use Air J to support a money losing entity. At least, the government will be able to earn tax revenue from Caribbean Airlines.
History tells us that governments are not very good at operating business. Take for example, in the USA, Amtrak, the Post Office. These government entities lose $M every single year and it is the taxpayers who have to shoulder the burden.
I can only assume how much money the government of Jamaica is losing to run an antiquated postal services
ONE LESS NOOSE AROUND THE NECK OF TAXPAYERS.

Hugh Blake
3/5/2010

Air Jamaica is or was a business, it is not Trinidad fault that air JA cant get their act in order. Give your Trini brethrin a break man.

Marlon J
3/5/2010

Jason get a life!! Wwhere would JA be without foreign investors!!
Emotions never made a profit for a business. Air J is a drain on the government coffers

Hope Alive
3/4/2010

Has anybody seen the balance sheet of Caribbean Airline?
Yes, air jamaica was hemorrhaging and something had to be done but I'm not sure CA will serve our interest.

Clive Foster
3/4/2010

As Jamaican I am very upset over the sale of Air Jamaica to Trinidad. Again, the Jamaica Labor Party sold out the people transportation. They sold the JOS the people bus service back in the 80’s and it created pandemonium for Jamaicans right across the corporate area. The Jamaicans people suffer for many years without a proper bus service. Anything Jamaican, should remain Jamaican because of the blood sweat and tears of our fore parents. As a nation we cannot move forward without unity and national pride. This country, the land of wood and water is now eroded with greed, selfishness, have and the have not. The crime rate in this beautiful country is driving people like myself not visit my beloved country which in turn affects the air transportation. I am calling on the government to clean up their back yard by reducing the crime rate so that Jamaican abroad can invest in the country which would create jobs for Jamaicans.
I understand the airline was losing money but cutback on staffing and routes that are not profitable. Outsource to a company that can manage and make profit, instead of selling to a competitor. We Jamaicans suffer enough abroad from discrimination, we do not need another country to treat us like dirt in our country. Mr. Prime Minister, please rethink your decision.
Claudius

Everton Hewitt
3/4/2010

Well its very sad to see this day ...Air Jamaica failed because government fail to find someone who could manage this airline ...Air Jamaica was making money..when seats on the Aircraft are filled that's a sign of good business..the government fail to show how the money was been spent ...a few points where the government failed .....too many people were on the payroll for doing nothing ...there were no need for that many ground staff ..there were no need to continue to upgrade the fleet so often..Aircrafts can fly for well over 20 years..they did it with the 727s ..they could have continue to fly the A310s ...I first flew on it in 1997 from Orlando ..there was no need to get the A340s ...Heathrow was too expensive to serve..Glasgow should have been the choice ...sold the UK route for nothing, could have gotten 20million pounds easily ..suspended Chicago , Miami and Dallas route so American Airlines can have it for themselves ....I'm just hoping Caribbean Airlines will maintain the name ,the flight crew and keep our colors on the planes ..

Yard Vibz
3/4/2010

Yow Jason, what’s up with the envy thing? My youth all of the Caribbean Islands should come together as one and utilize the resources of CARICOM, which was created in the early 70s, in a way that would cause Europe & North America to reconsider their scornful perception of us. Trinidad is a much more successful nation than Jamaica, and that point is being demonstrated is almost all facets of our society. You have mentioned some of Trinidad’s acquisitions on our soil in your distasteful post, and to cement you dissatisfaction, you are now lobbing for a boycott of their most recent accomplishment.
Rude-bwoy, I’m not one bit surprised by your tirade because you have echoed the sentiments of many medieval and fool-fool Jamaicans, who are residing in America. You’ve stated that you visit Yard quarterly and you and your family have no intention of setting foot on the ‘Love Bird’ again. But you have conveniently omitted the fact that Jamaicans are considered to be Jamaicans most implacable enemies in both yard and Foreign. Di way yuh a big up yuhself, it would have been nice if you had pitted the audience and let us know how you manage fi go a yard so much time fi di year.
Anyway King, nothing personal, I’m just tired and perplexed of our ‘crab inna barrel’ mentality. Despite the obvious dislike for our neighbours, let us try for once to welcome and embrace Trinidad’s endeavors and patronize them in whatever way we can, because although you’re currently residing in the Desired US, your are a West Indian same way.
Another thing for you to toy with don, is the average ticket price to travel to the Rock. Should the Trinnis fail in their effort to retire this half-dead project from life support, you would have to travel fewer times since prices would increase. I don’t have enough time go into economics, but touch mi back if yuh nuh like wha mi seh cauz man aan man a big man. Respect boss!

Dale Everel Moony Morris
3/4/2010

Jason,
Trinidad did not Bank up Air J or did stop anyone else from biding. This is a dawinist work where only the prepared survive so don't knock Trinidad Knock our own that is part of our problem blame.
This pilot thing is a flaw because the venture capitalist them are all foreigners too so there you go folowing hearse.
You rather not support your own that is another one of our problem....

David Williams
3/4/2010

I will miss air jamaica even though I hardly travel with them because they were always expensive. I can believe Bruce Golding take the airline and give it to the Trinidadians. Thats a shame.

Kipling Gibson
3/4/2010

we as Jamaicans need to educate ourselves and stop let the government bring in outside influence who thinks they can fix all. these people come in charge a bag a money and the results are not what we bargain for...should be results driven not sell out driven...these quick fixes - sell everything to save money..sell the rass government - sell unuselves. blue mountain coffee gone..now air jamaica..wtf? mi betta hurry n buy piece a land before everything selloff. air jamaica needed new management efforts to turn it around..customer service needed some improvement - ontime dispatch def..needed some work..by the grace a GOD we always reach safe...the government fail to state there were minor profits these past few years...well i n i boycotting caribbean airlines...how many people will lose their jobs and how many trini will move to jamaica to take those jobs?

JA Deane
3/4/2010

Sad to see Air J leave our hands but THIS IS A BUSINESS! Sentiments has no place in a shareholders heart and pockets. Had the airline not been mismanaged then it would still be in our hands.
Companies get bought and sold everyday and the main reason is that they are not commerically viable.
I still cannot understand how Air J is insolvent when their ticket prices were ALWAYS higher then their competitors. Mind you, I understand that AA's and Deltas had a strategic advantage of size and scale. But laaks man, tell mi which Jamaican enevr heard of the expression, "quick sale, small profit." The operative word being profit.
In fact, despite the higher ticket prices, I have never been on an Air J flight that was not fully booked. Which begs the questions, "HOW, WHEN AND WHY" did Air J fail?

Anastasia Wilson
3/4/2010

While I am sad that again, we seem to have taken another step backwards, I can't say that it wasn't a long time coming. Everytime I've flown on Air Jamaica it's been nothing but pure stress. The worst was when a scheduled 8:30am departure from NY didn't end up leaving until 8:30PM, and to add insult to injury, they simply told us that everyone was going to Kingston, like it or not. We arrived close to midnight, sans luggage and hungry. They were kind enough to put us up in a hotel for the night but it was traumatic being in Jamaica and not receiving my luggage til days later. Needless to say, at the height of the Christmas season there would be no hot-stepping for me.
I decided to try them several more times after that out of loyalty to my island and its national carrier but things didn't get better. And as a previous poster noted, the cabin crew had this air about them as if they weren't there to serve and assist. Yet still I always told myself that "mi naw gi dem whey fi nobody" cause those pilots were da bomb! I never had to clench my arse nor send up any special prayers from feeling like we weren't going to make it. We might've been late but absolutely sure (and safe)!

jason gardner
3/4/2010

we already starting up a petition on all social network to boycott air Jamaica or Caribbean airlines. so as of April 12, 2010 no one should fly on Caribbean airlines. all my family are already planning not to fly on Caribbean airline. how much time we are going to tell these Trinidadians that they are not welcome. they are like flees, every thing they imitate Jamaican. the cement and insurance companies are different,because air Jamaica depend on travelers to survive. The Jamaican diaspora is air Jamaica largest customers and so we hold the key . I travel between Jamaica and America at lease 4 times a year, and now my new carrier will be Jet Blue. if this thing start getting out of hand we may have to take it in to our own hands and make sure they leave the country. After Bruce disrespect his own people no matter how he beg, we will not support Caribbean airline. i hope the pilot get to start a new airline company. it won't be in the short term, but as long as they get the process going it would be good.

Karen Lee
3/4/2010

Air jamaica, may belate,but it it one of if not the safest airline. The first time i travelled on american airlines i was terrified. This was summer of 1988. I think it was that same year that america had shot down an iranian airline. Needles to say i did not want to be on that plane of fear of retaliation for iran. I made it a point of duty when i am travelling to only take air jamaica. Its sad...really sad. It looks beautiful on the grounds of the airport to say look pan we yard aircraft...to see the beautiful colors and the hummingbird on the plane. The only thing i could not stand years ago was the flight attendant who did tink them shyte did stinker than mine. I applied for a position to work for them and i was turn down flat. Dem seh back then dat you hafffi bi light skin and mawga fi work fi dem. Hey that was then, this is now. I will truly missed air jamaica, but i have a feeling it will be back.

Maurice Ellis
3/4/2010

End of an era.. the first time i flew on air jamaica was 1988 i was 6 then Last . The last time was just last sunday returning from Fort lauderdale the ticket was $40 more expensive than Spirit but i flew on it because i new it would probably would be my last flight with Air J and wouldn't be around again by time a would fly again .. i regret that i never got a first class ticket.
Trust me some good pilots few delays but nuttin too long
ironically this last flight the plane was full both ways and it was on time plane was on runway 5 minutes before departure time lol

Richie L
3/4/2010

Sad day, but a necessity.
.
My first flight was on Air Jamaica on July 23, 1977 on a McDonnell Douglas DC-8 to New York. There was a fashion show aboard and I remember the stewardesses being very attractive and nice.
.
I soaked in every aspect of the flight because I used to relish the day when I would actually fly on an aircraft. Living in Spanish Town, I would see planes from all over descending into Kingston or early in their take-off. We (kids) would point to departing planes and try to predict where they are going. We would say that one is going to England and that one is going to New York or Miami based on their trajectory. Who knows if we were right.
.
In the 70's, Air Jamaica would sometimes put out circulars in the Sunday papers showing what the planes look like inside. I used to collect them.
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My return flight to Jamaica that summer of 1977 was on an American Airlines flight using a Boeing 707. Along with other unaccompanied minors, the stewardess took all of us into first-class right before landing in Kingston and wrote our names on a name tag and paste them on our breast pocket.
.
At the gate, we were met by a pretty attendant who got our bags took us through customs and immigrations and out to our waiting relatives. Do they still do that for minors?
.
The flight each way cost $90, that is $90 Jamaican dollars. Back then then the US dollar was only worth about 85 Jamaican cents.
.
The next 2 years, I went again to New York, but these times it was American Airlines both ways. I would use Air Jamaica again in later years, but I mostly used American carriers such as AA and Eastern Airlines. The last time I flew Air Jamaica was October 1994. I was late by about 7 hours. I didn't stop using Air Jamaica because of their lateness, but because where I lived, Air Jamaica did not serve it. As a matter of fact , I am planning on going to Jamaica this summer. I got a nonstop flight on AIr Jamaica but I opted for Delta, because I can't risk not being able to return in a timely manner. A cousin of mine was in Jamaica last week and she reported that it was chaotic there, and ended up being placed on an AA flight though she had taken Air Jamaica.
.
Adieu Air Jamaica.
.
Richie

Jaydene Thomas
3/4/2010

So we hear this news from a leaked letter rather than the government as usual. Why waste the Pilot's Association time if they knew the deal was a done one? It's a pity we had to sell to Caribbean Airlines, I can see difficulties in Caribbean travels for the future as it is quite expensive to travel in the Eastern Caribbean at the moment and from the Eastern Caribbean to Jamaica, with Air Jamaica being absent and Caribbean Airlines being essentially the only option. I think that the 'little men' should have been given a chance to run the airline. In any event the workers normally know more about the business than the boss.

Dale Everel Moony Morris
3/4/2010

Why dont we sell the government and the opposition too and seal the deal(if that not already done). Because for all my adult life they have being losing money too, we can't continue the lost forever so we should consider that option. May be Trinidad or Charles Branson or Alcoa would buy us out of imminent destruction.

Dale Everel Moony Morris
3/4/2010

The curtain came downd finally. I think this is a third party deal that makes no sense as nobody in there correct mind would want the debt associated with Air J.
Furthermore if as much as the name and color on the planes changed, there is going to be a royal backlash that will see CA bankrupt again within a year and I guarantee you the government have still has some financial responsibility even after the sale. Jet Blue just had a massive WIN over all else.
RIP AIR JAMAICA THE ISLAND IS MOURNING YOUR LOST BUT IT WAS A GOOD RUN WHILE IT LASTED. THIS IS THE END RESULT OF WHAT WE AS A PEOPLE BELIEVE IN CORRUPTION OVER COMPETENCE. NO MATTER WHAT HANDS WE DELT WE DESTROY IT OVERTIME.
FOR ME IT IS SAD BECAUSE NEXT TIME A GO FROM NY TO JA IT WOULD BE THE FIRST TIME THAT I AM NOT FLYING AIR J IN 20 YEARS.
RRRRRRIIIIIIIIIIIIIIPPPPP.

3/4/2010

Ta Ta Air Joke!
....TG...

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Final flight April 12