Virgin/Air J codeshare the best decision, says Branson
Virgin Atlantic president Sir Richard Branson yesterday said that his airline’s codeshare agreement with Air Jamaica was the best decision for “all Jamaicans” and the Jamaican economy, as it would prevent airfares being increased by a monopoly carrier and insulate the island from any possible fallout if the London/Kingston route was cut.
“Competition is needed in the aviation industry to help keep prices lower and service quality higher,” Branson said in a letter e-mailed to the Observer by Virgin Atlantic’s director of communications, Paul Charles. According to Branson, Air Jamaica made its codeshare pitch for the London/Kingston route to his airline and British Airways at the same time.
“When it became clear to us that BA might be the frontrunner, we made our representations to the Jamaican Government about the need for traveller choice, market competition and a fresh codeshare arrangement between ourselves and Air Jamaica,” Branson said.
Virgin eventually won the deal and will operate two flights weekly between London Gatwick and Kingston, in addition to its existing two flights a week between Gatwick and Montego Bay.
“We have also reached a codeshare agreement where the Air Jamaica code will be on all Virgin Atlantic flights to the UK,” Branson added.
He said that it was not viable for Air Jamaica to continue swallowing the losses mounting from a single daily service, particularly given that record fuel prices are adding millions of dollars to airline costs.
“In addition, it is not right that the Jamaican taxpayer should continue to fund such losses when there may be more pressing demands for precious funds,” said Branson.
He said that Virgin will begin flying the route in October, using a Boeing 747 and offering 190,000 seats, a fraction less than Air Jamaica’s current offering.
Added Branson: “If Air Jamaica had selected British Airways to operate the route instead, which BA already flies three times a week, it would be creating a monopoly supplier, leaving BA to set the market price, and likely leaving consumers and Jamaican businesses paying more for their ticket.”
He argued that a monopoly carrier could either reduce its frequency or “potentially also exit the route, leaving leisure travellers and businesses from the capital city entirely cut off”.
“With four flights a week between Jamaica and the UK, and regular codeshare internal flights between Kingston and Montego Bay, we are offering more choice and frequency than any other airline,” Branson said, adding that Virgin would “work hard to grow the market with a view to increasing frequency”.