Air J loses US$11m - Airline restructures to cushion fallout

Air Jamaica's chief executive officer Christopher Zacca (left) outlines the status of the national carrier while chairman Gordon 'Butch' Stewart looks on. Mr. Zacca was addressing a press conference at the Jamaica Conference Centre in Kingston yesterday. - Michael Sloley

AIR JAMAICA'S chairman Gordon "Butch" Stewart, yesterday put the losses sustained by the national carrier over the past week at US$11 million.

The airline, he said, sustained heavy revenue losses since last week Tuesday in the wake of the terrorist attacks on the United States and the subsequent shutdown of international flights and pointed to costs incurred for putting up passengers and crew in American hotels for the better part of a week.

"The entire commercial aviation industry is now in a state of crisis. United States airlines are talking about bankruptcy by the end of the year if government financial aid is not forthcoming. Stocks in the major airlines dropped between 40 and 70 per cent on Monday and there are projections of 100,000 staff layoffs by the end of the year," he said.

Mr. Stewart told reporters at a press conference in Kingston that Air Jamaica would not escape the ravishes of what occurred last week.

"We are talking about a doubling of our insurance costs and a dramatic fall off in bookings. We will not be pulling out of routes but will be reducing frequency on routes. We are not contemplating layoffs but rather a judicious control of capacity and a cost efficiency promotion programme."

He urged Jamaicans "to get behind the national carrier" and recognise the well-being of the airline was inextricably linked to the economic welfare of the country.

Hijackers commandeered four commercial airlines in the United States and crashed two into the World Trade Center in New York and one into the Pentagon in Washington, D.C. last Tuesday. A fourth crashed near Pittsburgh, Pennsylvania.

The Federal Aviation Authority immediately banned all flights over the US and subsequently instituted stricter security measures.

Resulting from the new measures, Air Jamaica will introduce a number of changes to its passenger flight operations, the company's president and chief executive officer Chris Zacca said.

The new measures include:

An increase in check-in times from two hours to two and a half hours before departure, with passengers ensuring they get to the airports as early as possible.

A total ban on knives of any material. Previously knives with blades shorter than four inches had been allowed.

All but ticketed passengers will be prohibited from proceeding past airport metal detectors.

There will be more physical checks on passengers and luggage.

Airport security screeners will be required to meet higher standards.

Passengers are requested to limit their carry-on baggage to one item.

Mr, Zacca said that from now on baggage from his Montego Bay hub would be thoroughly hand-checked before being placed on connecting Air J flights.

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