The Editor, Sir:

The management of Air Jamaica has continued to make some basic business mistakes. With the alleged demise of the London route, the carrier's main market is now North America. Portfolio management is about spreading risks, with sectors of the market performing better than others at different times, allowing for the sustainability of the product.

The company has unwittingly put 'all its eggs in one basket'. With the changing nature of the global airline business, the company has not leveraged itself against a fallout in the North American market or against serious competition. Air Jamaica's market share has been reduced with the introduction of the 'open skies' arrangement with the United States. More American carriers are now flying into Jamaica. Delta is now in direct competition with Air J on the Atlanta route, while American and Spirit have the lion's share of the market on the New York and Fort Lauderdale routes, respectively.

The options for survival are to seek to enter new markets as the American one is way too mature. There have been talks of going into Central and South America and expanding in Europe, the latter now discredited with the impending demise of the London route. Nothing new has been suggested. The management needs to be more proactive; its very survival depends on it. If the present trend at Air J continues, it will only be a matter of time before its existence becomes no more than a distant memory, giving rise to discussions about what might have been.

I am, etc.,

D. PLUNKETT

pludon@aol.com

Via Go-Jamaica