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Staunching the Air J haemorrhage
published: Saturday | October 20, 2007
In the context of the company's massive daily losses, save for concerns about the terms of disengagement under his contract, it is immaterial whether Mike Conway resigned voluntarily from Air Jamaica as its CEO or was asked to go by the new board.
The airline's losses can hardly be blamed entirely on Mr. Conway who has been in the job for less than three years; but the board should have a free hand to implement measures that hopefully will staunch the financial haemorrhage, unencumbered by any existing policy outlook. The former CEO may just have found it prudent to give the new board space to effect the changes that they want to implement.
Happily, good sense prevailed on the part of employees at the Sangster International Airport and they resumed work shortly after their ill-advised work stoppage on Thursday. This is no time for rash action. Suggestions that his management style had endeared him to the employees is commendable, but withdrawing from work to demonstrate this support is foolish at best.
Obviously, for sentimental reasons Air Jamaica holds a special place in the hearts of Jamaican travellers. The cold, hard facts, however, are that the airline is losing millions of dollars each month. Sooner rather than later, the country and specifically the Government will have to decide whether the costs of having a 'national' airline that is leaching the public purse to the extent Air Jamaica is, supersedes practical financial considerations.
The argument has been made that in times of crises such as happened with hurricanes, Air Jamaica's management was willing and able to provide service beyond that of other private competitors. That may well be true, but the costs keep adding up.
The airline industry worldwide has experienced tremendous turbulence. Several companies in the United States have filed for bankruptcy, faced as they were with massive cost overheads. Others have drastically scaled back on the services offered and cut staff significantly.
The new Air Jamaica board acting on the directives of the Government must take a scalpel to Air Jamaica's operations and with a steady eye do the necessary surgery mindful of some of the actions already implemented to improve the situation.
The current expansion work at the two international airports with the potential of bringing in more revenue for the Airports Authority and the airline should be carefully examined. The board and the government must also be especially careful in how it manages the operations of the airline. This is no time for political patronage and cronyism, however disguised. The Jamaican taxpayers are not prepared to allow for a mere swapping of players and faces, resulting in a continuation of the losses. Now is the time for strong action.
The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner. To respond to a Gleaner editorial, email us: editor@gleanerjm.com or fax: 922-6223. Responses should be no longer than 400 words. Not all responses will be published.
published: Saturday | October 20, 2007
In the context of the company's massive daily losses, save for concerns about the terms of disengagement under his contract, it is immaterial whether Mike Conway resigned voluntarily from Air Jamaica as its CEO or was asked to go by the new board.
The airline's losses can hardly be blamed entirely on Mr. Conway who has been in the job for less than three years; but the board should have a free hand to implement measures that hopefully will staunch the financial haemorrhage, unencumbered by any existing policy outlook. The former CEO may just have found it prudent to give the new board space to effect the changes that they want to implement.
Happily, good sense prevailed on the part of employees at the Sangster International Airport and they resumed work shortly after their ill-advised work stoppage on Thursday. This is no time for rash action. Suggestions that his management style had endeared him to the employees is commendable, but withdrawing from work to demonstrate this support is foolish at best.
Obviously, for sentimental reasons Air Jamaica holds a special place in the hearts of Jamaican travellers. The cold, hard facts, however, are that the airline is losing millions of dollars each month. Sooner rather than later, the country and specifically the Government will have to decide whether the costs of having a 'national' airline that is leaching the public purse to the extent Air Jamaica is, supersedes practical financial considerations.
The argument has been made that in times of crises such as happened with hurricanes, Air Jamaica's management was willing and able to provide service beyond that of other private competitors. That may well be true, but the costs keep adding up.
The airline industry worldwide has experienced tremendous turbulence. Several companies in the United States have filed for bankruptcy, faced as they were with massive cost overheads. Others have drastically scaled back on the services offered and cut staff significantly.
The new Air Jamaica board acting on the directives of the Government must take a scalpel to Air Jamaica's operations and with a steady eye do the necessary surgery mindful of some of the actions already implemented to improve the situation.
The current expansion work at the two international airports with the potential of bringing in more revenue for the Airports Authority and the airline should be carefully examined. The board and the government must also be especially careful in how it manages the operations of the airline. This is no time for political patronage and cronyism, however disguised. The Jamaican taxpayers are not prepared to allow for a mere swapping of players and faces, resulting in a continuation of the losses. Now is the time for strong action.
The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner. To respond to a Gleaner editorial, email us: editor@gleanerjm.com or fax: 922-6223. Responses should be no longer than 400 words. Not all responses will be published.
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