Air Jamaica Board asked to submit revised business plan

KINGSTON, Jamaica – The Jamaica Cabinet has requested the Air Jamaica Board to submit a revised business plan, aimed at downsizing and eliminating unprofitable routes.

This was announced on Wednesday, November 1, by Minister of Information and Development, Donald Buchanan, at a post-Cabinet press briefing held at Jamaica House.

He also said that it was agreed that the closure of the national carrier, Air Jamaica, was not an option at this time.

Earlier this week, the Air Jamaica Board met with a Cabinet sub-committee on Air Jamaica, chaired by the Minister of Finance and Planning Dr. Omar Davies, to present their latest business plan.

Mr. Buchanan stressed that one of the issues that must be considered in the new revised business plan is the re-fleeting of the airline.
“Among the issues to be addressed in this new business plan will be options in respect of re-fleeting the airline, that is, to give consideration to the existing fleet, to look at the options in terms of alternate types of aircraft, to look at the question of present lease and sublease arrangements, and to possibly renegotiate those,” the Minister informed.

“One of the things that is going to be central to the whole decision that will eventually be made in respect of Air Jamaica, is to minimize and bring to as close as possible, if not to the actual amount, what government has committed as the amount to support the airline,” he added.

He pointed out that the Government has said that it would be prepared to provide US$30 million support, and “what in effect the airline is being told, you have to rationalize and re-organize to come to within this ballpark figure”.

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