Airone eyeing vacant routes - Airline urged to fill void left by Air Jamaica

Published: Saturday | January 31, 2009


Janet Silvera, Senior Gleaner Writer

WESTERN BUREAU:

Tourism stakeholders are urging the Caribbean's first low-fares airline (LFA), Airone, to fill the void left by national carrier Air Jamaica.

Airone, which was denied a licence to operate here, making way for Government to divest Air Jamaica without having to confront any competition from within, has been lurking in the wings for the last two years.

However, with Air Jamaica's announcement on Tuesday, stating that, come February 26, it will exit its Atlanta, Los Angeles, Miami and Grand Cayman routes and discontinue service between Jamaica and Barbados and Jamaica and Grenada, the way seems clear for another carrier to take up the routes.

Waited long enough

Long before Air Jamaica made its announcement, Airone's commercial director, Tara Playfair-Scott, said she and her team had waited long enough for a decision to be made in relation to their future.

"If not now, then when?" she asked over a month ago, adding that the time for excuses and ignoring was over.

The project, a mixture of regional and international investors, is designed to make air travel affordable and easily accessible to everyone, said Playfair-Scott.

"We will grow the Caribbean air-travel market through low fares and a safe, reliable service on Boeing 737-300 aircraft," she told The Gleaner, adding that they planned to roll out across the Caribbean and Central America and become the largest airline in the region, with over 25 aircraft.

Below-market fares

Playfair-Scott said Airone's fares would be 40-70 per cent below current market price and their routes would include a mix of existing and new intra-Caribbean, Latin American and US gateways. The 'no-frills' service would operate on short-haul routes (flying time of four hours or less), and point-to-point non-stop direct flights.

Noting that it was not their intention to see Air Jamaica crumble, Playfair-Scott said: "We have given the Government a myriad of options and have been more than willing to work alongside Air Jamaica. We need them as it's been proven time and time again in the market that a low-cost carrier can and does operate alongside a traditional carrier to the benefit of both."

The airline said it was not asking for funding and was willing to invest and create an opportunity for the people and the country of Jamaica.

janet.silvera@gleanerjm.com

Airone projections

Growth

Airone would add two per cent GDP growth to Jamaica within five years, noting that the European Union has experienced four per cent GDP growth directly as a result of the introduction of low-cost carriers in 1994.

Employment

Airone would create 220 skilled jobs in Jamaica within the first year alone, 90 per cent would be filled by Jamaicans.

Airone would be hiring and training graduates in posts from management to cabin crew.

Investment

Airone would bring five aircraft to Jamaica within 12 months.

Airone would directly generate a minimum of US$65M in taxation in its first year, excluding taxation through employment and services of third-party providers.

Airone would make Jamaica more competitive and attract foreign-direct investment (FDI).

Air Links

Airone would significantly add non-stop air links to the Caribbean, South, Central and North America.

Airone would open up new markets and would attract FDI.

Airone would generate 376,000 new passengers in the first year and more than 650,000 in the second year.

Tourism

Potential to bring one million tourists per year into Jamaica within five years with 250,000 new tourists by year two.

Thousands of spin-off jobs in the tourism sector and millions in new income.

Airone would give Jamaica direct access to US-based low-cost airline customers, an untapped market segment at present.