The management of Air Jamaica yesterday confirmed reports initially published in The Gleaner that it would be selling its London route to Virgin Atlantic.

Cabinet approved the sale of the airline's route to Virgin Atlantic at its meeting yesterday.

In a statement issued yesterday, the airline cited substantial increases in fuel prices along with the impact of fares owing to additional scheduled and charter flights as reasons for cutting the route.

The sale will see 20 jobs in reservations, sales and airport operations affected at the London office, which will be closed.

"Virgin Atlantic has agreed to provide, where possible, employment opportunities for the approximately 20 staff members in London," the statement said.

Unprofitable route

The airline's exit from the route will take effect in November. Mike Conway, president and chief executive officer of Air Jamaica, told The Gleaner yesterday that the route had been unprofitable, with the company losing US$27 million (J$1.8 billion) in 2006.

"That number for a full year of 2007 would likely go to US$30 million so the route losses have a negative contribution of US$2.5 million per month," he said, adding that "our exit from the route will eliminate these losses."

Asked why it took the management so long to comment on the sale of the route, Mr. Conway said the airline had made a decision not to issue public statements until its approval process was completed.

"Otherwise, we would be relegated to issuing things just based on speculations and we are not going to do that," he said.

The Air Jamaica statement said Virgin Atlantic would accommodate all passengers at the price they have paid on its flights departing after October 28 this year.

Meanwhile, Information Minister Donald Buchanan, told journalists at yesterday's post-Cabinet press briefing at Jamaica House that Finance and Planning Minister, Dr. Omar Davies, and officials from the airline would provide details of the new arrangements shortly.