Junior Dowie/Staff Photographer
Gordon 'Butch' Stewart, chairman of the Sandals Resorts, gestures during a press briefing at the Sandals Resorts hotel chain's Kingston headquarters yesterday.AIR JAMAICA needs US$35 million in working capital to soar above its post 9/11 baggage, chairman Gordon "Butch" Stewart, confirmed yesterday.
"We are going to the market to seek US$35 million in another few months, that all I can say for the time being," Mr. Stewart told The Gleaner yesterday. Although he would not commit to disclosing more than the basics about the move, he added that while the airline was in "fighting shape," it needed an injection of capital to keep in shape.
He said that the financing would have to be acquired within a few months and that the process was already "very much in progress."
"We're in good shape, but this is an industry which is in turmoil," Mr. Stewart explained.
He pointed out that the airline was carrying 51 per cent of "everyone who comes to Jamaica" and over 60 per cent of everyone who is flying to Jamaica from the United States, mainly people who wanted to fly non-stop and not be bothered by stop-overs, which created additional burdens for the company.
Turning to the issue of possible redundancies or lay-offs, Mr. Stewart suggested that, at least for the time being, this would be restricted to its tour arm, Air Jamaica Vacations. That company laid off some 66 workers recently and another 10 this week.
But, Mr. Stewart said that every tour operator has had to lay-off staff since the September 11, 2001 attacks on the United States, as the airline industry was currently in a "period of soft travel and there has to be a trimming exercise." But, he assured that the lay-offs would not extend to the company's air crew.
The national airline experienced an 18 per cent decline in revenues for the current fiscal quarter as a result of the terrorist attacks in the United States.
In making the announcement last year, Mr. Stewart stressed that it was imperative that Air Jamaica was seen to be delivering a quality and reliable air service. He pointed out that the United States market was vital to the airline with 72 per cent of U.S. airline passengers flying Air Jamaica and 60 per cent of U.K. capacity choosing to fly Air Jamaica.
The Air Jamaica's chairman reported that the U.K. route was doing very well and that plans were afoot to extend the route to a daily service. He said that while the recent decision of the British Government to introduce visa restrictions on Jamaicans travelling had severely affected its service to that country, things had levelled off since and the reduction was in the region of 10%.
Following the 9/11 events, Air Jamaica sustained losses of approximately US$70 million.
