Thursday 23rd June 2005

 

Air Jamaica loses US$61m in five months

 
 
 
 
Sports Arena
Womanwise
Business Guardian
 
Letters
Online Community
Death Notices
 
Advertising
Classified Ads
Jobs in T&T
Contact Us
 
Archives
Privacy Policy
 
 
 

Air Jamaica lost US$61 million for the first five months of this year, as the government, which has been running the airline since December, struggles to shrink it into viability, in line with its strategic master plan.

The loss during the five months, represents an acceleration of the haemorrhaging that took place when the company was in private hands—though the new management says the bleeding will be curbed once the recent cost containment measures begin to take effect.

Air Jamaica’s executive chairman, Dr Vin Lawrence, told the Business Observer that operating deficit of US$36 million had been budgeted for the first six months of this year. But unforeseen disruption of services, caused primarily by an increase in the frequency of major maintenance, and route restructuring, had added another US$25 million in expenses.

Lawrence, speaking through the airline’s public relations director, Sandra Falconer said that a requirement earlier this year, for Air Jamaica to carry out major maintenance once every 15 months, rather than 18 months as was the practice for years, had forced the company to shut down services in a way that had not been programmed.

The maintenance schedule was dictated by the Civil Aviation Authority, as part of its mandate and effort to engender safety at the airline.

 

 

©2004-2005 Trinidad Publishing Company Limited

Designed by: Randall Rajkumar-Maharaj · Updated daily by: Sheahan Farrell