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Create an environment that will support direct flights - Bartlett
published: Wednesday | September 10, 2008
Bartlett - File
Jamaica's Minister of Tourism Edmund Bartlett is refuting claims that the revenue guarantee given to legacy carrier [American will pose a threat to the national carrier Air Jamaica.
In response to a number of concerns raised about the agreement, the tourism minister said it would in no way undermine the service provided by the national carrier. "Such a deal with a legacy carrier allows us the opportunity to deliver the world to Jamaica and Jamaica to the world," noted Bartlett.
The national carrier Air Jamaica continues to enjoy for many years funding support from the Government subsidising the carrier for operation and expansion. This of course is encouraged further where the ability to undertake new routes, maintain existing gateways and improve service standards are viable through marketing initiatives.
Jamaica Vacations, the agency which negotiated the arrangement with American Airlines, is responsible for exploring opportunities to increase capacity to Jamaica and to form strategic alliances with travel industry partners through varied options. Once reviewed and successfully accepted, partnerships will ultimately benefit Jamaica.
The additional seats per week to Jamaica come at a time when major United States carriers are significantly reducing service to the tourism-dependent Caribbean region as they grapple with record -high fuel prices. And the region is quite vulnerable because American Airlines controls much of the market - carrying more than 60 per cent of passengers travelling through the Caribbean last year. This month, the airline will cut flights by almost 45 per cent eliminating flights to Santo Domingo, Antigua, St Maarten, Aruba and Samana in the Dominican Republic.
New service
While a number of regional counterparts will see a reduction in service, Jamaica is poised to benefit from the additional airlift based on the arrangement. Effective November 2, American Airlines will begin daily service from Dallas Fort Worth to Montego Bay and from Miami will increase to three the number of daily flights to Montego Bay. As of January 31, 2009, American Airlines will offer a new service five times a week from Chicago to Montego Bay. In all three gateways, American will operate a Boeing 737 with a capacity of 148 seats, providing in excess of 3,000 additional seats to Jamaica.
At a time when the aviation industry is in turmoil, the tourism minister noted that airlines were now seeking countries with a critical mass that would support a load factor of 75 per cent or more, which he believes Jamaica can satisfy. According to Minister Bartlett, "We have to create an environment that will support direct flights and provide inducements for co-marketing arrangements and multi-destination strategies."
The tourism minister noted that with the nearly 3,000 new hotel rooms expected to come on stream this year, the deal was critical to ensure that hoteliers could fill existing and new rooms.
Minister Bartlett contends that the deal provides global connectivity with American offering thousands of flights from feeder cities across the United States, connections from India through the hub in Chicago and from China through the hub in Dallas. The minister's position is supported by American Airlines reporting last year that over 40 million people travelled through its Dallas hub and over 20 million through its hub in Miami.
150,000 visitors expected
As part of the agreement, American will not fly to Jamaica if less than 65 per cent of the seats are taken. Jamaica will therefore only be required to pay the 10 per cent revenue if the load factor is less than 75 per cent. The tourism minister noted that the additional flights to Jamaica each week is expected to carry in excess of 150,000 visitors to the island over the next 12 months with projected revenue to Jamaica in the region of US$96 million.
Advertising and Promotion
Minister Bartlett said, "All airlines which fly to Jamaica will benefit as a result of the Jamaica Tourist Board supported advertising and spot cable buys. People will continue to fly the airline of their choice, which in many cases is the national airline," Bartlett stated.
With the added publicity by American to promote Jamaica in these markets coupled with Jamaica's own public relations and advertising in the market, Air Jamaica will be a natural beneficiary of the added publicity.
The minister is confident that Air Jamaica will not be negatively impacted, adding that a specific public relations campaign called 'Come Home' targeting Jamaicans overseas and the wider diaspora will be undertaken to encourage travel home. This, he indicated, will stimulate travel specifically for Air Jamaica.
Minister Bartlett indicated that given the various challenges, it was clear it couldn't be business as usual, adding that our survival would depend on keeping the airlift, the lifeblood of tourism, flowing.
An American Airlines McDonnell Douglas MD-82 aircraft gets ready to take off at the Bob Hope Airport in Burbank, California
published: Wednesday | September 10, 2008
Bartlett - File
Jamaica's Minister of Tourism Edmund Bartlett is refuting claims that the revenue guarantee given to legacy carrier [American will pose a threat to the national carrier Air Jamaica.
In response to a number of concerns raised about the agreement, the tourism minister said it would in no way undermine the service provided by the national carrier. "Such a deal with a legacy carrier allows us the opportunity to deliver the world to Jamaica and Jamaica to the world," noted Bartlett.
The national carrier Air Jamaica continues to enjoy for many years funding support from the Government subsidising the carrier for operation and expansion. This of course is encouraged further where the ability to undertake new routes, maintain existing gateways and improve service standards are viable through marketing initiatives.
Jamaica Vacations, the agency which negotiated the arrangement with American Airlines, is responsible for exploring opportunities to increase capacity to Jamaica and to form strategic alliances with travel industry partners through varied options. Once reviewed and successfully accepted, partnerships will ultimately benefit Jamaica.
The additional seats per week to Jamaica come at a time when major United States carriers are significantly reducing service to the tourism-dependent Caribbean region as they grapple with record -high fuel prices. And the region is quite vulnerable because American Airlines controls much of the market - carrying more than 60 per cent of passengers travelling through the Caribbean last year. This month, the airline will cut flights by almost 45 per cent eliminating flights to Santo Domingo, Antigua, St Maarten, Aruba and Samana in the Dominican Republic.
New service
While a number of regional counterparts will see a reduction in service, Jamaica is poised to benefit from the additional airlift based on the arrangement. Effective November 2, American Airlines will begin daily service from Dallas Fort Worth to Montego Bay and from Miami will increase to three the number of daily flights to Montego Bay. As of January 31, 2009, American Airlines will offer a new service five times a week from Chicago to Montego Bay. In all three gateways, American will operate a Boeing 737 with a capacity of 148 seats, providing in excess of 3,000 additional seats to Jamaica.
At a time when the aviation industry is in turmoil, the tourism minister noted that airlines were now seeking countries with a critical mass that would support a load factor of 75 per cent or more, which he believes Jamaica can satisfy. According to Minister Bartlett, "We have to create an environment that will support direct flights and provide inducements for co-marketing arrangements and multi-destination strategies."
The tourism minister noted that with the nearly 3,000 new hotel rooms expected to come on stream this year, the deal was critical to ensure that hoteliers could fill existing and new rooms.
Minister Bartlett contends that the deal provides global connectivity with American offering thousands of flights from feeder cities across the United States, connections from India through the hub in Chicago and from China through the hub in Dallas. The minister's position is supported by American Airlines reporting last year that over 40 million people travelled through its Dallas hub and over 20 million through its hub in Miami.
150,000 visitors expected
As part of the agreement, American will not fly to Jamaica if less than 65 per cent of the seats are taken. Jamaica will therefore only be required to pay the 10 per cent revenue if the load factor is less than 75 per cent. The tourism minister noted that the additional flights to Jamaica each week is expected to carry in excess of 150,000 visitors to the island over the next 12 months with projected revenue to Jamaica in the region of US$96 million.
Advertising and Promotion
Minister Bartlett said, "All airlines which fly to Jamaica will benefit as a result of the Jamaica Tourist Board supported advertising and spot cable buys. People will continue to fly the airline of their choice, which in many cases is the national airline," Bartlett stated.
With the added publicity by American to promote Jamaica in these markets coupled with Jamaica's own public relations and advertising in the market, Air Jamaica will be a natural beneficiary of the added publicity.
The minister is confident that Air Jamaica will not be negatively impacted, adding that a specific public relations campaign called 'Come Home' targeting Jamaicans overseas and the wider diaspora will be undertaken to encourage travel home. This, he indicated, will stimulate travel specifically for Air Jamaica.
Minister Bartlett indicated that given the various challenges, it was clear it couldn't be business as usual, adding that our survival would depend on keeping the airlift, the lifeblood of tourism, flowing.
An American Airlines McDonnell Douglas MD-82 aircraft gets ready to take off at the Bob Hope Airport in Burbank, California
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