LETTER OF THE DAY - What is Air Jamaica's value to Jamaica

Published: Monday | February 2, 2009


The Editor, Sir:

I cannot help but wonder what is playing out at Air Jamaica. It seems that over the last few years, CEO after CEO and chairman after chairman have failed.

Being a Jamaican and a businessman, I have a few questions for both the minister with responsibility and the CEO of Air Jamaica in relation to the latest business plan as follows:

1. What is the overall economic value (GCT, room tax, jobs, etc, ...) of the airlift that Air Jamaica provides to Jamaica?

2. What is the potential cost to the country for the substitution of Air Jamaica on these routes if it were needed in the near future?

3. What is the value of the risk to our tourism industry from the increased vulnerability to foreign airlines pulling out of these same routes?

4. What is the value of and three major reasons for losses at Air Jamaica? It would be interesting to see how the management structure and costs, late fines, lease arrangements and staffing compare with other carriers.

5.Would it be better to reduce the frequency on the routes rather than totally closing them in order to maintain a reasonable presence and increase the loads on the same flights?

6. Are other airlines poised to take over and continue on these routes that Air Jamaica is closing?

7. How will cutting the routes affect the perceived value of the airline to potential buyers? Have they put their money where their mouth is as yet?

8. Have transparent performance evaluations been done to identify and try to keep the best people for the airline in the reduction exercise?

9. Can we be absolutely certain that Jamaica is being well served by Air Jamaica's consultants? Are there any potential conflicts of interest?

Minister, borrowing an analogy from Jim Collin's (Good to Great), it is easier for leadership to cut than to build a flywheel. What will we be left with in another five years? Look at our athletes, artists, musicians, tourism product and our people. We can do it.

I am, etc.,

CHRIS BURGESS

cburgess@ceacsolutions.com