By Al Edwards, Business co-ordinator
THE EVENTS of September 11, 2001 which severely ruptured the airline industry worldwide cost the national carrier Air Jamaica, US$70 million in lost revenue and as a result it will need bridging finance to ensure the efficient operation of the airline.
So said Air Jamaica's deputy chairman, Christopher Zacca at a briefing held at Appliance Traders Limited (ATL) headquaters at 35 Half-Way Tree Road, Kingston yesterday, to update the media on the state of Air Jamaica since September 11, 2001.
"A year on from the events of September 11, 2001, we estimate that during that period we have lost US$70 million. It has also cost us an additional US$6 million in insurance and US$25 million in security. We will now be requiring bridging financing but as yet haven't placed a figure on that sum."
"If the disaster of September 11 last year did not occur, Air Jamaica would have broken even this year," declared Mr. Zacca.
Air Jamaica's chairman, Gordon 'Butch' Stewart said that security measures stipulated by the Federal Aviation Authority (FAA) though necessary have proved costly and had impacted on Air Jamaica's bottom line.
"We now have to have special bullet-proof security doors fitted onto the pilots' cockpit on all our aircraft. This has to be completed by April of next year. This will cost us US$60,000 per door and we have 20 aeroplanes."
Mr. Stewart said that Air Jamaica was the first international carrier to touch down in Miami after September 11 which in his opinion bore testimony to the airline's ability to recover and become operational in a short period of time following the September 11 attacks.
"Since September 11, 2001, many airlines have cut back on their capacity by as much as 50 per cent. Air Jamaica chose to move forward and cut back by just 14 per cent initially but by December we were back to full capacity. While other airlines have suffered tremendously as a result of the terrorist attacks, as it currently stands Air Jamaica accounts for 63 per cent of all the people who fly out of the United States to Jamaica which is very impressive indeed.
"We account for 61 per cent of all traffic coming out of the United Kingdom and that takes into account both the schedule and chartered carriers. This demonstrates the resilience of the national carrier."
Mr. Stewart further pointed out that unlike many other international carriers,
Air Jamaica has not undergone radical
lay-offs, rather it has attempted to improve its services.
For more details read this Friday's Financial Gleaner
