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Wednesday, March 11, 2009
Eager to maintain market share, Air Jamaica is offering fares equal to low-budget carrier Jet Blue that starts flying to Jamaica on May 21.
Both airlines will offer a US$159 one-way fare (excluding US$23 taxes) for flights into the Montego Bay from New York's JFK International Airport. At the same time Delta will charge US$218 and US$224 for American Airlines.
Passengers board an Air Jamaica plane at the Norman Manley International Airport in Kingston. The national carrier's new schedule has 218 weekly flights to 14 destinations between Jamaica and Toronto, New York, Chicago, Baltimore, Philadelphia, Orlando, Fort Lauderdale, Curacao, Nassau and Havana. (Observer file photo)
Jet Blue, the low-cost carrier which started operations shortly after 9/11 terrorists attacks, has been expanding its international routes, in a bid to diversify its operations.
Montego Bay is one of six new cities Jet Blue will fly to in this quarter, four of which are outside the US including Costa Rica, Dominican Republic and Mexico.
But despite the growth, the airline's traffic in February decreased 8.3 per cent from February 2008. Load factor (or filled seats) for February 2009 was 74.5 per cent, a decrease of 2.3 points from February 2008.
The JFK to Montego Bay route is a popular route. In August, 18,054 passengers came to the island on that route versus 7,215 in September 2007. During that period, Air Jamaica's share of the market had dwindled from 34 to 21 per cent according to Bureau of US Transportation statistics. The latest statistics up to August revealed that 88 per cent of Air Jamaica's available seats were filled from 29 flights on that route. This is an improvement of 82 per cent from 19 flights in September 2007. There was no flight data in August 2007.
American Airlines was the route's leading carrier accounting for 40 per cent of the traffic at 7,291 passengers in August (3,867 for Air Jamaica). Next was North American Airways, a charter service, which carried 4321 passengers, and Delta Airlines carried some 2,366 passengers.
Air Jamaica executives were not available for comment up to press time.
The national carrier, which is scheduled to be completely divested by the end of March, has effective February 26, undertaken a new business model that includes the shedding of eight routes and six planes.
Now the airline's schedule has has 218 weekly flights to 14 destinations between Jamaica and Toronto, New York, Chicago, Baltimore, Philadelphia, Orlando, Fort Lauderdale, Curacao, Nassau and Havana. The airline will also offer service between New York and Barbados and New York and Grenada.
The Business Plan projects that these measures will lead to $63 million in operating losses this year but break-even cash flow by Summer 2009.
The plan was adopted after Air Jamaica threw out two other options. The first was to continue to operate based on the original 2008 business plan. However, that, the management said, would still lead to significant operating losses of $65 million in 2009 and would not demonstrate to potential divestment partners or creditors that the airline could be viable.
The second option was for the closure of the airline to facilitate restructuring. However, the legal framework was not available in Jamaica to facilitate orderly transition and the measure would likely result in material adverse change clauses being exercised in loan, debt and lease agreements.
http://www.jamaicaobserver.com/magaz...AY_FLIGHTS.asp
Eager to maintain market share, Air Jamaica is offering fares equal to low-budget carrier Jet Blue that starts flying to Jamaica on May 21.
Both airlines will offer a US$159 one-way fare (excluding US$23 taxes) for flights into the Montego Bay from New York's JFK International Airport. At the same time Delta will charge US$218 and US$224 for American Airlines.
Passengers board an Air Jamaica plane at the Norman Manley International Airport in Kingston. The national carrier's new schedule has 218 weekly flights to 14 destinations between Jamaica and Toronto, New York, Chicago, Baltimore, Philadelphia, Orlando, Fort Lauderdale, Curacao, Nassau and Havana. (Observer file photo) Jet Blue, the low-cost carrier which started operations shortly after 9/11 terrorists attacks, has been expanding its international routes, in a bid to diversify its operations.
Montego Bay is one of six new cities Jet Blue will fly to in this quarter, four of which are outside the US including Costa Rica, Dominican Republic and Mexico.
But despite the growth, the airline's traffic in February decreased 8.3 per cent from February 2008. Load factor (or filled seats) for February 2009 was 74.5 per cent, a decrease of 2.3 points from February 2008.
The JFK to Montego Bay route is a popular route. In August, 18,054 passengers came to the island on that route versus 7,215 in September 2007. During that period, Air Jamaica's share of the market had dwindled from 34 to 21 per cent according to Bureau of US Transportation statistics. The latest statistics up to August revealed that 88 per cent of Air Jamaica's available seats were filled from 29 flights on that route. This is an improvement of 82 per cent from 19 flights in September 2007. There was no flight data in August 2007.
American Airlines was the route's leading carrier accounting for 40 per cent of the traffic at 7,291 passengers in August (3,867 for Air Jamaica). Next was North American Airways, a charter service, which carried 4321 passengers, and Delta Airlines carried some 2,366 passengers.
Air Jamaica executives were not available for comment up to press time.
The national carrier, which is scheduled to be completely divested by the end of March, has effective February 26, undertaken a new business model that includes the shedding of eight routes and six planes.
Now the airline's schedule has has 218 weekly flights to 14 destinations between Jamaica and Toronto, New York, Chicago, Baltimore, Philadelphia, Orlando, Fort Lauderdale, Curacao, Nassau and Havana. The airline will also offer service between New York and Barbados and New York and Grenada.
The Business Plan projects that these measures will lead to $63 million in operating losses this year but break-even cash flow by Summer 2009.
The plan was adopted after Air Jamaica threw out two other options. The first was to continue to operate based on the original 2008 business plan. However, that, the management said, would still lead to significant operating losses of $65 million in 2009 and would not demonstrate to potential divestment partners or creditors that the airline could be viable.
The second option was for the closure of the airline to facilitate restructuring. However, the legal framework was not available in Jamaica to facilitate orderly transition and the measure would likely result in material adverse change clauses being exercised in loan, debt and lease agreements.
http://www.jamaicaobserver.com/magaz...AY_FLIGHTS.asp