An Air Jamaica flight takes off. The national carrier announced Monday it has outsourced its loss-making vacation arm to Mark Travel Corporation, saying the new arrangement takes effect in August. - file

National carrier Air Jamaica has outsourced its travel booking arm, Air Jamaica Vacations, to an American company, Mark Travel Corporation, effective August 1.

Air J bookings of Caribbean vacations, which are normally inclusive of travel and hotel packages, will now handled by Mark Travel headquartered in Milwaukee, Wisconsin which operates 16 vacation brands.

The changes, which will see Air Jamaica Vacations being operated from Orlando instead of the existing Miami locale, comes after sustained loss-making by the unit.

Air Jamaica did not specify the savings it anticipates from the shift, and efforts at comment from president Mark Conway and his senior vice president for sales and marketing Paul Pennicook were unsuccessful.

Restructuring operations

The airline is in the process of restructuring its operations under a new business plan which aims to cut expenses by about US$80 million in two years, and to be self-sufficient by 2009.

The plan, whose most controversial element has been the replacement of the Airbus fleet with Boeing aircraft, requires annual injections of US$65 million by government.

In the year ending 2005, Air Jamaica Vacations made a net loss of US$1.9 million, a small increase in the US$1.1 million recorded in 2004.

The loss in 2005 represented 1.6 per cent of Air Jamaica's net loss of US$120 million for that year.

"This is the best business decision for the company moving forward," said Pennicook, quoted in a company release.

Visions of success

"We are an airline, first and foremost, and outsourcing the vacation division allows us to focus on the business of running our airline efficiently. We feel this change will allow Air Jamaica to be more successful and focused on truly being 'The World's Best Airline to the Caribbean," he added.

Air Jamaica said its employees were advised that they would be fully compensated by the company until July 31, after which they could apply to Mark Travel for available positions.

Where possible, jobs will be offered by Mark Travel to existing employees, the airline said.

"Our customers will continue to receive the same high level service and various options for bookings packages under the new management," said Vice President Sales George deMercado.

"To the consumer and travel agent community nothing will change."