Air J set to reach new heights?

Dennis Morrison, Contributor

INDICATIONS THAT Air Jamaica has begun to climb out of the turbulence that disrupted its operations earlier this year must be welcomed.

Recently, a new board of directors led by local businessman, O.K. Melhado who has considerable experience in the airline industry, was appointed to succeed the interim team, which took over management of the airline when it returned to Government ownership late last year.

Local tourism interests are likely to be most relieved that the airline seems to be on its way to restoring its reputation for on-time service, especially after suffering badly when half of its fleet of aircraft was grounded by the Jamaica Civil Aviation Authority (JCAA) earlier this year.

BADLY HIT

During that period the island's tourism business out of the United States north-east region and the United Kingdom was badly hit by the cutback in service. If there had been any questions about the essential role of the airline in our tourism industry, the evidence of the dip in business that occurred should dissolve them. That role was even more important during the 1990s when other scheduled airlines, particularly from the U.S. were not enthusiastic about flying to the Caribbean.

As we welcome the new team headed by Melhado and Mr. Mike Conway, co-founder of the U.S. carrier, America West Airline, Air Jamaica is now better positioned to respond to the highly competitive marketplace although high fuel prices and security and other costs will continue to present huge challenges.

FINANCIAL POSITION

Over the past 10 months the interim board under the leadership of Executive Chairman Vin Lawrence, took several measures to create a platform on which to turn around the financial position of the airline. Among these were the consolidation of routes, amicable settlement of long-standing contract negotiations with the pilots who agreed to make adjustments to help the effort to attain viability, as well as the restructuring of the over $800 million of debt inherited from the private operators.

The new team at Air Jamaica must now continue the restructuring and streamlining process to restore reliability and to keep pace with the rapid changes takeing place in the global industry.

Almost immediately, it must shape strategies to meet increased competition as new carriers enter the Jamaican market and as consumers demand quality service while shopping more keenly for attractive prices. In this regard, Mr. Conway, the new CEO, should prove an important asset as he comes with a track record of success in management and labour relations, two areas that will be critical to Air Jamaica's efforts to overcome its limitations of size and scope.

Every Jamaican who feels that she or he owns a part of Air Jamaica will want the team to succeed so our pride can be restored and taxpayers will be anxious as well, given the heavy burden that the airline's operations have imposed on the national treasury even when it was privatised.

With this goodwill, the tremendous loyalty of our people to the Air Jamaica brand, a united management team and a bit of luck, the Lovebird should have a fighting chance.

CONTRIBUTED
From left: Judy Schoenbein, Appleton Estate Rum Tour, Torrance Lewis, JTB United Kingdom, Liz Fox, regional manager U.K./Europe JTB, and Mr. and Mrs. Peter James, Carib Jet, on a recent promotional trip in the U.K.