Air J and Virgin side deal

[Assasin]

Air J, Virgin expand code-sharing to Miami
published: Friday | November 16, 2007

Janet Silvera, Senior Tourism Writer

Virgin Atlantic passengers flying from Heathrow through Miami and into Jamaica will connect on Air Jamaica flights in Miami, the airlines have agreed.

The deal involving the sale of Air Jamaica's Heathrow slots to Virgin Atlantic has been finalised, with the code-share agreement officially to take effect November 30, Virgin's spokesman Paul Charles confirmed this week.
Speaking on the margins of the World Travel Market trade show in London, Charles said the Heathrow slots were officially transferred by the Jamaican Government last week while the letter finalising the code-share agreement was received by Virgin a few days later.

The deal the Financial Gleaner has learned also involves an additional agreement, negotiated in the past two weeks, for Virgin flights from Heathrow through Miami to Jamaica to connect on Air Jamaica's JM026 and JM024 flights into Montego Bay and Kingston, respectively.
Air Jamaica anticipates earnings of $142 million in the first year of the arrangement.

Hotelier Josef Forstmayr who runs the exclusive Round Hill property on the outskirts of greater Montego Bay, said the side deal, with the Miami option, while not the perfect solution, made the London route sale more palatable.

Complained bitterly
Forstmayr had complained bitterly that his market, largely pulled from continental Europe, would be badly inconvenienced by having to go to Gatwick International to connect to Jamaica.

But now, he said, Round Hill's guests flying in from Vienna, Rome, Berlin, Paris, Prague and Russia can connect through Miami and get to Jamaica on the same day.

Virgin Atlantic, having said it was the more profitable option, is holding to plans to service Kingston from Gatwick, whose slots Transport Minister Mike Henry had described as 'junk' during a visit to Jamaica by Virgin chairman Sir Richard Branson to settle an emerging quarrel with the Bruce Golding administration over the route sale to his company.

Henry was relieved of his responsibility for Air Jamaica in the week following those comments.

"We are delighted that the best outcome for Jamaica has been achieved and we look forward to carrying many thousands of Jamaicans over the next few years," said Charles.

Air Jamaica's vice-president of marketing, Paul Pennicook, who confirmed the Miami code-share arrangement, said the deal with Virgin should earn Air Jamaica US$2 million (J$142 million) in the first year of the agreement.

Losing
Prior to sale of the Heathrow slots, reportedly for £5 million (US$10 million), the Jamaican carrier was said to be losing between US$25 million and US$27 million annually on the London route.

Under the agreement, Air Jamaica will maintain a presence in the United Kingdom, by way of an office in London "to take care of Air Jamaica's business," said Pennicook.

He said travellers would be able to book seats with the airline from that market and that Virgin flights will be assigned an Air Jamaica flight number.
An Air Jamaica representative is also expected to be at the airport during check-ins. Pennicook would not comment on his business in London, but Virgin has said the two airlines remain in discussion on areas of cooperation to expand their partnership.

[Karl]

Air J, Virgin expand code-sharing to Miami
published: Friday | November 16, 2007

Janet Silvera, Senior Tourism Writer

Virgin Atlantic passengers flying from Heathrow through Miami and into Jamaica will connect on Air Jamaica flights in Miami, the airlines have agreed.

The deal involving the sale of Air Jamaica's Heathrow slots to Virgin Atlantic has been finalised, with the code-share agreement officially to take effect November 30, Virgin's spokesman Paul Charles confirmed this week.
Speaking on the margins of the World Travel Market trade show in London, Charles said the Heathrow slots were officially transferred by the Jamaican Government last week while the letter finalising the code-share agreement was received by Virgin a few days later.

The deal the Financial Gleaner has learned also involves an additional agreement, negotiated in the past two weeks, for Virgin flights from Heathrow through Miami to Jamaica to connect on Air Jamaica's JM026 and JM024 flights into Montego Bay and Kingston, respectively.
Air Jamaica anticipates earnings of $142 million in the first year of the arrangement.

Hotelier Josef Forstmayr who runs the exclusive Round Hill property on the outskirts of greater Montego Bay, said the side deal, with the Miami option, while not the perfect solution, made the London route sale more palatable.

Complained bitterly
Forstmayr had complained bitterly that his market, largely pulled from continental Europe, would be badly inconvenienced by having to go to Gatwick International to connect to Jamaica.

But now, he said, Round Hill's guests flying in from Vienna, Rome, Berlin, Paris, Prague and Russia can connect through Miami and get to Jamaica on the same day.

Virgin Atlantic, having said it was the more profitable option, is holding to plans to service Kingston from Gatwick, whose slots Transport Minister Mike Henry had described as 'junk' during a visit to Jamaica by Virgin chairman Sir Richard Branson to settle an emerging quarrel with the Bruce Golding administration over the route sale to his company.

Henry was relieved of his responsibility for Air Jamaica in the week following those comments.

"We are delighted that the best outcome for Jamaica has been achieved and we look forward to carrying many thousands of Jamaicans over the next few years," said Charles.

Air Jamaica's vice-president of marketing, Paul Pennicook, who confirmed the Miami code-share arrangement, said the deal with Virgin should earn Air Jamaica US$2 million (J$142 million) in the first year of the agreement.

Losing
Prior to sale of the Heathrow slots, reportedly for £5 million (US$10 million), the Jamaican carrier was said to be losing between US$25 million and US$27 million annually on the London route.

Under the agreement, Air Jamaica will maintain a presence in the United Kingdom, by way of an office in London "to take care of Air Jamaica's business," said Pennicook.

He said travellers would be able to book seats with the airline from that market and that Virgin flights will be assigned an Air Jamaica flight number.
An Air Jamaica representative is also expected to be at the airport during check-ins. Pennicook would not comment on his business in London, but Virgin has said the two airlines remain in discussion on areas of cooperation to expand their partnership.

http://www.reggaeboyzsc.com/forum1/s...ht=air+jamaica

...and...

http://www.reggaeboyzsc.com/forum1/s...ht=air+jamaica

----So was the negotiation that Omar Davis spoke of as still on-going have anything to do with the announcement that Air Jamaica, Jamaica's tourism and Jamaica is now expected to derive greater 'profits' than before?

If so, what the hell...????

Further is that turn round of $27+millions through to $32million+ 'on the plus side' worth it?

If so, what the hell...????

Could it be that we should have made even greater gains...and, is it also that the new JLP government never knew what the hell they were talking about? ...There was no recognition of what we are now hearing about, that turn round of $27+millions through to $32million+ 'on the plus side' offering was on the 'near-term' horizon and that AirJ would switch from losing that nuff-nuff millions in a year to profits?

If so, what the hell...???

[Assasin]

So why Omar never negociate that?

After Mike Henry and others kick up a storm Virgin realise that without the support of Jamaica then they stand to loose so they do the next best thing for both parties. You don't give something away and then negociate after.

[Willi]

http://www.reggaeboyzsc.com/forum1/s...ht=air+jamaica

...and...

http://www.reggaeboyzsc.com/forum1/s...ht=air+jamaica

----So was the negotiation that Omar Davis spoke of as still on-going have anything to do with the announcement that Air Jamaica, Jamaica's tourism and Jamaica is now expected to derive greater 'profits' than before?

If so, what the hell...????

Further is that turn round of $27+millions through to $32million+ 'on the plus side' worth it?

If so, what the hell...????

Could it be that we should have made even greater gains...and, is it also that the new JLP government never knew what the hell they were talking about? ...There was no recognition of what we are now hearing about, that turn round of $27+millions through to $32million+ 'on the plus side' offering was on the 'near-term' horizon and that AirJ would switch from losing that nuff-nuff millions in a year to profits?

If so, what the hell...???

Virgin only had locked up the Winter slots...summer slots were still on the table. They managed to squeeze Virgin for more with the antagonistic posture.

Virgin is very slippery, so cant tek you eye off them. Ask the Bahamas!

[Karl]

So why Omar never negociate that?

After Mike Henry and others kick up a storm Virgin realise that without the support of Jamaica then they stand to loose so they do the next best thing for both parties. You don't give something away and then negociate after.

When the PNP left office the negotiations where not concluded. It just so happened that the JLP won the election...or, you forgot? Point is the party in charge would be the one's wrapping up the negotiations.

[Karl]

Virgin only had locked up the Winter slots...summer slots were still on the table. They managed to squeeze Virgin for more with the antagonistic posture.

Virgin is very slippery, so cant tek you eye off them. Ask the Bahamas!

My point was Mike Henry either did not have all the facts at hand...and or did not understand exactly what he had in hand/the postion of strength from which he was negotiating/would be negotiating...

As you suggest above, it may be that he decided to politicize the process...and or came to what he considered an informed decision and his outburst was a part of his strategy i.e. raise holy hell outside and then meet with a 'shell-shocked' adversary at the negotiating table?

Kill two birds at one stone throw? Unfairly knock the PNP & hopefully make Sir Richard Branson more tentative at the table?

Somehow the thought that Henry would be attempting to frighten the wily seasoned...extremely experienced negotiator Sir Richard Branson does not ring plausable. To my ears it is more plausable that Henry over-reached and Bruce's slap-down was deserved.

[Don1]

Virgin only had locked up the Winter slots...summer slots were still on the table. They managed to squeeze Virgin for more with the antagonistic posture.

Virgin is very slippery, so cant tek you eye off them. Ask the Bahamas!

Willi, if Henry's antagonistic posture was a JLP negotiating ploy and not Mike Henry emotionalism, I believe Golding would not have stripped him of the portfolio but allowed him to negotiate or at least retain the portfolio with someone else leading discussions. This removal of responsibility amounted to a public dressing down of the guy. There wasn't even an attempt at face-saving for Mike.

The fact is since negotiations were not concluded prior to the elections no one here knows what was on the table when the JLP took over. It's pure speculation to state that Virgin was squeezed for "more".

[Muadib]

So is only you can speculate ?

[Willi]

Willi, if Henry's antagonistic posture was a JLP negotiating ploy and not Mike Henry emotionalism, I believe Golding would not have stripped him of the portfolio but allowed him to negotiate or at least retain the portfolio with someone else leading discussions. This removal of responsibility amounted to a public dressing down of the guy. There wasn't even an attempt at face-saving for Mike.

The fact is since negotiations were not concluded prior to the elections no one here knows what was on the table when the JLP took over. It's pure speculation to state that Virgin was squeezed for "more".

U conveniently forget the slap in OUR face by Virgin.

How you think the announcement of our slots going to Barbados was received by OUR Govt? You think the song and dance show that Branson and crew performed was always on the cards?? The linking of their Heathrow flights with AJ in Miami and the energy consultations were also sweeteners.

Bruce and crew seem set to unload AJ and so they may have concluded that too much distraction is not necessary.

[Assasin]

One thing was certain, there was a fire sale by Omar or we can call it a Yaard Sale.

[Assasin]

How negociation not done but you give Virgin the slots? A so the PNP negociate? Is like the Bora deal.

[Don1]

U conveniently forget the slap in OUR face by Virgin.

How you think the announcement of our slots going to Barbados was received by OUR Govt? You think the song and dance show that Branson and crew performed was always on the cards?? The linking of their Heathrow flights with AJ in Miami and the energy consultations were also sweeteners.

Bruce and crew seem set to unload AJ and so they may have concluded that too much distraction is not necessary.

You kinda lost me with this response.

Virgin slaps us in the face with the Barbados announcement and Bruce responds by slapping Mike publicly??? This does not compute. If you mean something else break it down for me.
I actually agree with Mike being all over this issue. He was just too immature in his approach. That's fine when you're on the Opposition side but not when you hold power.

It's possible that Golding/Wehby/whoever originated and negotiated the Miami connection but more likely in my view that it was already on the table due to the very compressed time scale within which the new administration concluded the deal.
Either way it's a logical step that benefits both parties and if the country benefits.... praises.

I regard the "energy consultations" as a red herring/PR/feel good gambit with nothing behind it. Branson has an interest in pursuing energy projects but has no energy business or expertise as far as I know. He wants to fuel aircraft with what...... methane from cow dung or something??

[Assasin]

where did you get the impression it was on the table?

All reports say it was an add on and Branson would have pointed that out when he made his statement.

[Don1]

Reports saying it was an add on do not mean it was not on the table but not yet agreed.
Anyway this is quibbling over minutiae.

[Assasin]

Well I just wanted to know how you come to that conculsion cause it has no support anywhere, Virgin said it was a done deal.