Airlift crisis looms

Air J at the mercy of US Department of Transportation

BY INGRID BROWN SENIOR STAFF REPORTER browni@jamaicaobserver.com

Thursday, April 01, 2010

AIR Jamaica could be forced to shut down prematurely, leaving a major gap in air seats to the island, if the United States Department of Transportation (DOT) turns down an urgent request the national airline is making.

On March 24, the airline wrote to the DOT asking for permission to continue to operate on the terms of its existing authority during the six-to-12-month transition period expected under the divestment agreement with Caribbean Airlines Limited (CAL), which is to take effect on April 12, 2010.

Failing that permission, the airline is asking the Americans for an urgent waiver of the DOT's standard ownership and control policy, in order for it to maintain services for the one-year period under its Transitional Services Agreement (TSA) with Caribbean Airlines.

It was not clear what led Air Jamaica to make the request at the eleventh hour, but the airline left no doubt that it needed a decision immediately.

"Air Jamaica respectfully requests the Department's expedited consideration of the matters raised in this letter, with a definitive DOT determination by no later than April 5, 2010," the airline's Washington-based counsel, George Carneal, wrote.

"Absent the economic support derived from such an interim structure, Air Jamaica would face the prospect of a near-term shut down, which would have a catastrophic impact on the approximately 1,900 personnel employed by Air Jamaica/Air Jamaica Holdings, countless booked passengers, and the vital tourism industry in Jamaica which relies so heavily on adequate air transportation services," the letter warned.

It was not immediately clear how the US would react, given the stand-off between Kingston and Washington over the stalled extradition of Tivoli Gardens strongman, Christopher 'Dudus' Coke.

The Bruce Golding Government said it would not bow to US demands for Coke whom they want to face trial on gun and drug-trafficking charges. Jamaica said the US evidence against Coke was obtained in breach of his constitutional rights.

Reached last night by phone overseas, Chief Executive Officer of Air Jamaica Bruce Nobles confirmed the contents of the letter, a copy of which was obtained by the Observer, but would not speculate.

As part of the transit agreement, Air Jamaica would continue to operate under its existing authority under the contractual agreement with Caribbean Airlines and "we are asking the Department of Transportation for their concurrence with that strategy", Nobles said.

Asked what the implications would be if DOT does not return a favourable response by April 5, Nobles admitted "it is unclear".

"There are different opinions about what might happen or not happen if the determination has not been made and it is premature to try to speculate," he said.

But in the letter to DOT, Carneal noted that prompt implementation of the required interim structure was essential to ensure Air Jamaica's continued commercial operations during the transition period, until such time as CAL was able to take over key Air Jamaica routes.

"In the event the department nevertheless concludes that as a result of this arrangement Air Jamaica no longer satisfies the "effective control" requirements, Air Jamaica hereby requests a limited, short-term waiver of DOT's ownership and control policy to the extent necessary to allow Air Jamaica to continue operations for up to one year under its DOT exemption authority," Carneal asked.

The letter stated that pursuant to a TSA beginning on or about April 12, 2010, Air Jamaica planned to continue to operate under certain Jamaica-US routes authorised by its "open-skies" DOT exemption authority.

This includes continuation of Jamaica-US routes under its JM designator code, homeland Operating License, Air Operator Certificate, and US operations specifications and economic authority.

"The carrier's key management personnel (as required and approved by the Jamaica Civil Aviation Authority), as well as a limited number of other personnel necessary to maintain Air Jamaica operations, will remain direct Air Jamaica employees for as long as Air Jamaica continues air transportation services under its licence and AOC," the letter stated.

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COMMENTS (23)

userfullname;
10/25/2010

Amazing website! Continue the informative posts.

Errol Palmer
4/1/2010

Why wouldn't the waiver be granted? If not granted it could be construed as barriers to free trade.
If so, then no US carrier should be allowed in Jamaica until the matter is settled. That would sure get the attention of the public. I can assure you that no one, United States included, wants this bad publicity.
As for making the links to the Dudus case, that is a reach. No affect.

Peter Lawrence
4/1/2010

This is great "James Bond at you service" mystery novel. I hope I am wrong but suppose China is in the mix and under cover of "desperation" Air Jamaican is finally sold to them,m lock, stock and barrel? THAT would be international flululups wouldn't it? Why say this? I can't believe Bruce could have overlooked this key fact just so, for lack of due diligence.

Leopold McPherson
4/1/2010

Wonder if the Dudus ting will impact the decision making process...yu neva know

C J
4/1/2010

Two passages explain why Air Jamaica is in trouble.
1. ‘It was not clear what led Air Jamaica to make the request at the eleventh hour, but the airline left no doubt that it needed a decision immediately.’
Really, you think is so it go? Wait 'till last minute and expect to get through before everybody else that put in requests on time. Good luck with that.
2. ‘Absent the economic support...catastrophic impact … approximately 1,900 personnel… countless booked passengers,..’
Countless?!?!? How can you not know or think to include exactly how many passengers are booked for the duration in question or the average passenger count for that time period in past years? Is not a rum bar argument you trying to win you know Mr. Carneal. The DOT responds to facts & figures, not flowery rhetoric.
Uncle Sam doesn’t care about JA’s problems any more than the Jamaican Govt. cares about U.S. problems (especially now), so ask yourself “what’s in it for them?” Then place on the record exactly how many Americans will be inconvenienced, exactly how much money their own citizens stand to lose & exactly when these displaced passengers will be overcrowding their airports & delaying more of their flights as a result.
Always late, cyah count passenger & expect fi run airline, unnu is a real set a jokers!

Jesse Fraser
4/1/2010

I don't know. I just don't know bredda! Old time people used to say; "hard ears pickney dead a sun hot!"
How many signs/warnings does he need before he learns that if he does not stop this gunuflecting and vascillating and plucking reason from the sky for not allowing this man to face the music, then Jamaica will suffer?

Cristobal Birdie
4/1/2010

The Pilots via the Air Jamaica Staff Acquisition Group, had warned of this problem arising months ago. I guess the pilots not so fool fool after all, they seem to be more on top of things than the GOJ.

anguish of being
4/1/2010

"I would not be surprised if our prime minister is not secretly genuflecting at the altar of the United States right now, asking them to see with his position and why he must bluster to save his political skin."
agreed.

Stephen Gunter
4/1/2010

This is now beyond a bad joke. What a display of utter, total and complete incompetence.
Seriously, these people could not run a patty shop, which should be of no surprise really since we have a Minister of Finance that could not run a gas station.

Drew Drewsky
4/1/2010

what a mess

Drew Drewsky
4/1/2010

yow

R Oscar lofters
4/1/2010

Yes we produce athletes and musicians to entertain the world. But in the grand scheme of world power economic and political clout, we are a third world backwater wirh limited resources, a semi literate population with a government dependent on US largess for survival. Unfortunately our misplaced ego constantly blinds us to theis fact.

Richard Edwards
4/1/2010

Well, this is something that CAL should have thought about even more than Air Jamaica. So now they have a dilemena. The US is "probably" not going to facilitate Jamaica on this one, especially with the current "impasse" with the Dudus case, and if that does not ahppen we all know what the end result will be, not to sound prophetic, but if we are depending on this Waiver to keep flying, then we can prepare to be grounded for some time. George Watson is on point, I concur with him. I just got information of many other persons visas that have been cancelled, the saga continues. "Good morning passengers, this is first officer Ewdards from the flight deck, please fasten your seatbelts and remain seated, we are going to be expecting severe turbulence for the duration of this flight, thank you. I say no more.
Richard Edwards. New York City.
betterlifeforjamaicans@yahoo.com

JAN WATTS
4/1/2010

Just another way of showing JA that, its time for the PM to out office, since he can't do his job, Mr. PM i have one question for you who is the leader of JA ? is it the USA, COKE OR YOU ? which please.

N Manley Blythe
4/1/2010

Observer, in a court of law, the representing parties speak half-truths and blatant lies in the representation of their clients. With this report you have delivered to me like a legal representative would. You are highlighting the fact that the request might not be granted but you fail to say why. At the same time though you have not highleted the fact that it could!
I beg of you, give me the facts and reasoned speculation, let me decide. We the citizens are relying on you for serious investigative journalism. It is only with this information that we can draw sensible conclusions and not be left with more questions than answers.
I am serious about nation building and your role in covering stories is key. Are just a "lubricated conduit" for news? Or, are you serious about helping us in uncovering the truth.

Paul Lewis
4/1/2010

When will we learn who entered into this agreement with CAL without Bruce's knowledge. So far it seems everything is being done without proper authority or discussion. Whose relative is the middleman, some one must be making money off this " Banduloo ". Is this sorry spectacle, Bruce is offering as good governance, before long we may start missing the other clowns. Bumbling and blunders are the hallmarks of this group of Keystone cops. It would be funny , if it were not people's lives and money in their control.

baRt siMsen
4/1/2010

Heh! see deh again... tings a com up to bump! Kakka!

mike willy
4/1/2010

To: Jay Brown
Keep it real. It is just like saying racism does not exists.

mark jones
4/1/2010

ANOTHER SUBTLE REMINDER OF THE INEXTRICABLE LINK BETWEEN OUR ECONOMIC LIVELIHOOD AND U.S. SUPPORT!
WE SHOULDNT ROLL OVER AND ACCEED TO EVERY REQUEST, BUT AT THE SAME TIME AT A TIME LIKE THIS DONT BITE THE HANDS THAT FEED YOU

JA Cynic
4/1/2010

The screws are turning; the situation is hurting and the GOJ is acting as if it could not have anticipated such reactions from the mighty North or its agents.
Let's get real: there are tough decisions, hard choices and always consequences.
The JLP had better wake up its leaders who have fallen asleep on the job.If not, change the driva or we will all get off the bus.
JA Cynic

george watson
4/1/2010

Where are all the people talking about Jamaica’s sovereignty and constitutional rights? If we are so big and bad why don’t we demand this waiver? We are a bunch of jokers? I heard a caller telling “The Thinker,” the other day that if we had developed as we should have over the years then we could have told the United States where to go in the Dudus issue. Of course the HOST AGREED.
We will never reach that stage of advancement in this country where we can do that, not with our LIMITED sphere of influence, our size and the fact that Jamaica is in the United States’ backyard.
Jamaicans, there are landowners in the United States with farms BIGGER THAN JAMAICA. Do you think the United States can afford to lose status in the eyes of the world over this issue?
I would not be surprised if our prime minister is not secretly genuflecting at the altar of the United States right now, asking them to see with his position and why he must bluster to save his political skin.
All the people who are advocating “our rights” in the matter must not have been around when the United States clamped down on our country because of their perception that we were flirting with communism and after Michael Manley had declaring their ambassador De’Roulet, persona non grata.
More is to come, MUCH. MUCH MORE and as a soap opera we will see it unfolding before our very eyes...

Jay Brown
4/1/2010

GROSS mismanagement and bungling at the highest level. Did we not know that we would have required this change prior to our grand announcement to sell the airline to CAL.
How could we have missed this detail, now we are left with the possibility that CAL cannot provide airlift from USA to Jamaica.
When you put people to management who have no management experience this is what you get, and to make it even more painful, we are paying them "non-managers" so much money.
Now Observer, why the link between this and Dudus, why are we trying to make a link or even possible link when none exist.
Not a day goes by when a article involving Jamaica and USA does not have "Dudus" somewhere in it.

Richie L
4/1/2010

Monkey business abound!
.
Richie

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