Paul Pennicook, senior vice-president of marketing, Air Jamaica, says the new discounts are not a sign of market repositioning.

Susan Gordon, Business Reporter

Air Jamaica has been selling cheap airline seats via the Internet, ranging as low as US$59 one-way for flights into North America, but the national carrier said last week that the discounts should not be seen as a market repositioning.

Air Jamaica said the discounted tickets were for seats in inventory or empty seats available on scheduled flights after bookings via Air Jamaica reservation centres and travel agencies.

Saying it would never compete with low budget Spirit Airlines, Air J tells the Financial Gleaner that it has been selling cheap seats for over a year to maximise ticket sales in low periods, adding that the offers are more visible now that the carrier has refined the promotions.

"I would never compete with Spirit and their one cent fares," said senior vice-president for sales and marketing, Paul Pennicook.

"Air Jamaica is moving like a first world airline. We've been doing a bit of this for some time now; we have refined the process and are doing it more scientifically."

The discounted fares are now being offered once per week or every Tuesday only on the Air Jamaica's website. Marketed as Lovebird eSavers, the ticket prices are sometimes 30 per cent cheaper online.

Pennicook said the internet fares put out on Tuesdays for specific travel periods were normally valid until Friday or four days after.

However, one of the promotions advertising fares between US$89 and US$157, runs from March to May.

"We look at our business and see where we see space and put out the fares. That is why it is for a limited time," said Pennicook, adding that the lowest fares are available only on the internet.

"We set the prices to suit ourselves."

The airline executive adds that Air J has been "picking up good last minute business" through the promotions, but did not specify, saying that was competitive information.

Queries to American Airlines - Air J's chief competitor in this market - were re-routed, with no responses to press time, but Pennicook says that the American carrier usually markets its seat inventory directly to its preferred or frequent flyer clientele.

Window for procrastinators

Pennicook believes the last minute seats and fares opens a window for procrastinators to book seats. However, he said the airline does not discount the same route every week to avoid market expectation that a particular destination will always be available at a low price on late bookings.

In the event that the airline has to run the promotion in successive weeks, the fareswill go higher.

"The ones we set for New York and Fort Lauderdale this week are higher because we have fewer seats," he explained last week.

The low fares reflected on the internet are one-way trip prices but on round trips are exclusive of taxes and fees. Two weeks ago, the Kingston to Fort Lauderdale trip was offered at US$59 per person. The entire trip, return, totalled US$200 inclusive of taxes.

The regular fare secured through the normal reservation systems cost US$435.

A week later, on March 15, the Lovebird eSaver fares for the same destination moved to US$89 per person.

The efares for that same route were last advertised at US$69 for travel from April 3 to 14.

Pennicook advises that travellers wanting to secure their travel plans still use their local travel agents but for those who are bargain hunters, the internet is the way to go.

susan.gordon@gleanerjm.com