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<TABLE cellSpacing=0 cellPadding=1 width="100%" border=0><TBODY><TR><TD><SPAN class=TopStory>Air Jamaica needs to identify its value proposition</SPAN>
<SPAN class=Subheadline></SPAN></TD></TR><TR><TD>By Clyde McKenzie
Sunday, December 10, 2006
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<P class=StoryText align=justify>I remember pointing out in a previous article that Magic Johnson was able to secure profits from the sale of food and refreshments at his cinema, a traditionally unprofitable venture, through his instinctive understanding the peculiar tastes of his customers, who were predominantly Afro-American.<P class=StoryText align=justify>Magic understood that the consumption patterns of white patrons were different from those of blacks. For example, white patrons would go to the cinema and then go and have dinner elsewhere while the black moviegoers would want to have dinner at the movies. Appreciating that difference in racial behaviour allowed Magic to make the necessary adjustments in his offering, thus creating value for his business.<TABLE cellSpacing=0 cellPadding=5 width=330 align=center border=0><TBODY><TR><TD>
</TD></TR><TR><TD><SPAN class=Description>Air Jamaica may have to decide whether it is a no-frills airline. </SPAN></TD></TR></TBODY></TABLE><P class=StoryText align=justify>An essential feature of any successful business is the ability to satisfy the wants or needs of its clients or customers. The question many management gurus will ask is, what is your value proposition? I pondered this question as I listened to some of the proposals being offered for the financial viability of our national airline, Air Jamaica.<P class=StoryText align=justify>I concluded that the answer to its eventual viability will be closely tied to its value proposition. At some point Air Jamaica may have to decide whether it's a no-frills airline or a luxury carrier. It will have to determine whether it will be a long or short-haul carrier. Confusion regarding the value proposition will only see the haemorrhaging continue unabated.<P class=StoryText align=justify>What are the cultural peculiarities of Jamaicans who constitute the bulk of the Love Bird's passengers which can be addressed as part of any approach to the profitability of that piece of Jamaica that flies? What about the tendency of Jamaicans to carry a large amount of luggage? Could addressing this aspect of the culture be a part of the financial revival of our airline?<P class=StoryText align=justify>Last year, I had the chance of travelling on Southwest Airlines and got an opportunity to see why it continues to fly high. Let me hasten to say Southwest is a domestic airline in the United States and therefore many of the measures which it has introduced in its operation would not work for Air Jamaica, an international airline.
One is not able to buy a Southwest ticket through a travel agent.<P class=StoryText align=justify>One must either purchase a Southwest ticket online or at the airport. This results in significant savings for the airline. It does not pay commissions to the travel agents. Could Air Jamaica use this approach? My belief is that this would be very disruptive as it would force those using the airline to change the way they deal with the airline.<P class=StoryText align=justify>Southwest flies out of small, remote airports. This confers two advantages on the airline; lower gating fees and a quicker turnaround time. Remote airports charge cheaper rates for gating fees and planes can get out faster from the gates which again translate to lower fees and lower operating costs.
There is no assigned seating on Southwest. There is only one class, and so one sits wherever one wants. This enables the plane to spend less time at the gate, since finding one's seat can take time.<P class=StoryText align=justify>The measures which I h
<SPAN class=Subheadline></SPAN></TD></TR><TR><TD>By Clyde McKenzie
Sunday, December 10, 2006
</TD></TR></TBODY></TABLE>
<P class=StoryText align=justify>I remember pointing out in a previous article that Magic Johnson was able to secure profits from the sale of food and refreshments at his cinema, a traditionally unprofitable venture, through his instinctive understanding the peculiar tastes of his customers, who were predominantly Afro-American.<P class=StoryText align=justify>Magic understood that the consumption patterns of white patrons were different from those of blacks. For example, white patrons would go to the cinema and then go and have dinner elsewhere while the black moviegoers would want to have dinner at the movies. Appreciating that difference in racial behaviour allowed Magic to make the necessary adjustments in his offering, thus creating value for his business.<TABLE cellSpacing=0 cellPadding=5 width=330 align=center border=0><TBODY><TR><TD>
</TD></TR><TR><TD><SPAN class=Description>Air Jamaica may have to decide whether it is a no-frills airline. </SPAN></TD></TR></TBODY></TABLE><P class=StoryText align=justify>An essential feature of any successful business is the ability to satisfy the wants or needs of its clients or customers. The question many management gurus will ask is, what is your value proposition? I pondered this question as I listened to some of the proposals being offered for the financial viability of our national airline, Air Jamaica.<P class=StoryText align=justify>I concluded that the answer to its eventual viability will be closely tied to its value proposition. At some point Air Jamaica may have to decide whether it's a no-frills airline or a luxury carrier. It will have to determine whether it will be a long or short-haul carrier. Confusion regarding the value proposition will only see the haemorrhaging continue unabated.<P class=StoryText align=justify>What are the cultural peculiarities of Jamaicans who constitute the bulk of the Love Bird's passengers which can be addressed as part of any approach to the profitability of that piece of Jamaica that flies? What about the tendency of Jamaicans to carry a large amount of luggage? Could addressing this aspect of the culture be a part of the financial revival of our airline?<P class=StoryText align=justify>Last year, I had the chance of travelling on Southwest Airlines and got an opportunity to see why it continues to fly high. Let me hasten to say Southwest is a domestic airline in the United States and therefore many of the measures which it has introduced in its operation would not work for Air Jamaica, an international airline.One is not able to buy a Southwest ticket through a travel agent.<P class=StoryText align=justify>One must either purchase a Southwest ticket online or at the airport. This results in significant savings for the airline. It does not pay commissions to the travel agents. Could Air Jamaica use this approach? My belief is that this would be very disruptive as it would force those using the airline to change the way they deal with the airline.<P class=StoryText align=justify>Southwest flies out of small, remote airports. This confers two advantages on the airline; lower gating fees and a quicker turnaround time. Remote airports charge cheaper rates for gating fees and planes can get out faster from the gates which again translate to lower fees and lower operating costs.
There is no assigned seating on Southwest. There is only one class, and so one sits wherever one wants. This enables the plane to spend less time at the gate, since finding one's seat can take time.<P class=StoryText align=justify>The measures which I h