There is a growing segment of the Trinidad and Tobago public clamouring for its home-based regional airline, Caribbean Airlines (CAL), to sever links with Jamaica in the wake of mounting losses.
Some segments of the public blame the loss-making routes in and out of Jamaica for the increasing operational deficit being incurred by CAL over the years since it bought Jamaica’s then national carrier, Air Jamaica, in 2010.
CAL’s accumulated losses is now estimated at US$454.5 million (over TT$3 billion), while posting a TT$172.7 million ($26 million) loss for the first quarter 2021 added to the operating loss of TT$738 million (USD108.5 million) booked in 2020.
In addition, there was a 75 per cent decline in revenue, compared to the same three months in 2020. In 2010, the Government of Jamaica agreed with CAL that it would designate it the exclusive national carrier of Jamaica when it bought Air Jamaica.
The Jamaican Government committed that it will not request designation of national carrier status for any other air carrier for as long as CAL’s Jamaican operations maintain a minimum level of service and meet certain other criteria.
One Trinidadian, John Jessamy, writing in the Trinidad and Tobago Newsday, commented that CAL’s, “agreement with Jamaica was a disaster.” He wrote that, “as recent as May CAL signed an agreement to absorb 1,000 Jamaicans as pilots, cabin attendants, maintenance engineers and ground staff, while the T&T Treasury is bearing this burden while Jamaica is laughing all the way to the bank.”
Jessamy emphasised that from June 2020 to now, Jamaica has recorded a total of 816,632 stopover visitors and generated in excess of US$1.31 billion, questioning whether CAL got a fraction of that money.
In responding to his question, the Trinidadian contended, “we stand all expenses and Jamaica waits for its share of the profits at the end of the year. That’s ludicrous. CAL surely needs restructuring. The first thing to do is sever the link with Jamaica.”
He charged that since CAL was formed in 2006, it has not made a profit of any real value but continues to receive a handout from the Ministry of Finance annually.
In dealing with the financial crisis at the airline, Jessamy is suggesting that CAL forge an alliance with LIAT and service the entire Caribbean with only ATR turboprop planes. He was adamant that Jamaica should not be in this partnership, arguing that Kingston “is only interested in international travellers to fund its tourism product. It is about time we get this monkey off our backs.”
Interestingly, CAL is 88.1 per cent owned by the Government of Trinidad & Tobago with the Jamaican Government holding the remaining 11.9 per cent. The airline operates bases at both Port of Spain (Trinidad and Tobago) and Kingston’s Norman Manley (Jamaica).
CAL holds 8.42 per cent market share at Kingston City Norman Manley International in terms of weekly airline seats, third in line after JetBlue Airways (B6, New York JFK) with 49.12 per cent and American Airlines (AA, Dallas/Fort Worth) with 9.66 per cent.
Jessamy’s sentiments about CAL delinking with Jamaica is shared by several members of the society; some among them in Parliament. Pronouncements by several Trinidadians suggested that they see Jamaica as being an albatross around the neck of the T&T-based airline ever since its purchase of Air Jamaica.
There has been no response from the Dr Keith Rowley-led Trinidad Government about talks of CAL severing ties with Jamaica, but the Administration has announced a restructuring of its operations at both bases in Jamaica and T&T.
Finance Minister Colm Imbert told Parliament two week ago that, “Caribbean Airlines’ restructuring will be taken in both countries in the best interest of the airline.” — Jamaica Observer
11 responses to “Sever ties with Jamaica”
Considering, that the Jamaican gov’t OWNS 11.9% of CAL, would suggest that it’s was not a simple case of CAL buying Air Jamaica, but rather the T&T taxpayers bailing out the bankrupt Jamaican airline by absorbing it and all it’s route rights, with all it’s debts….. and for that favour agreeing to give up 11.9% of CAL to the Jamaican gov’t. ….and for all we know, the Jamaican staff are on a separate remuneration package. HAVE to applaud Jamaica – they took care of their people. If CAL is so willing to spread it, LIAT and the governments of Barbados, Antigua & Barbuda and St. Vincent, should’ve taken a piece years ago! …but better late than never 😁
So what about all the UWI Students who fly from Dominica, Antigua, St. Lucia, Grenada, St. Kitts etc. to school and home each year…. just f them right? I have never been on a flight to Jamaica from Barbados via Trinidad that was never at full capacity. This is why Federation never worked…. all for self. I am curious to know what figures they found to deduce that this route was not profitable?
Why we as Caribbean people cannot all work together to have something of our own and stop the fighting amounts our self. Air Jamaica was bankruptcy, CAL step in and bought it, both T & T and Jamaica government should be working together to have something of our own in the Caribbean.
Chris, it is not that easy. Federation was supposed to have brought unity to the Caribbean as a whole. Instead, it has brought a great divide. Those people
living in the Southern Caribbean. Still has more in common with each other. Than Jamaica. Obviously, absorbing the debt of Air Jamaica 🇯🇲 didn’t work. So, it’s time to recalibrate the Plan and move on. You can’t get blood out of a stone. These Islands need to stop making it so personal and sometimes political. Its just Business and the population of the entire Caribbean lives should be taken into context.
and we all know how cal airfares are really expensive. Because they know that they are the only bridge between Kingston and the Eastern Caribbean they are shafting us left right and centre. The Govts need to sit down and talk. but as usual our govts in the Caribbean are just corrupt as they can get. they don’t care about the little man on the street. All they care about is the votes when elections get close. Govts need to look at the big picture. this decision will mean that lots of workers will be on the breadline and UWI students have to fly to Miami from the EC before they can get to Kingston. That is so much more expensive.
I am old enough to understand the mine set of Jamacian.These people only sees the rest of the Caribbean for what they can get from them.They are very prejudice, every other Caribbean island will eat each other local dishes, Jamaicans see these foods as not fitting for them,or good enough.Go into there stores and see how many items that were made from other Caribbean islands that is Sold in them, A simple thing as soft drinks or pop You can’t see any of them In food outlets weather in Jamaica New York,England, Canada they look down upon us and see us as less than The only time other black Are important to Jamaicans is When there are problems and they require a unity for marching.
Even in the churches if they don’t have total control they’re not comfortable.They are really not interested in Caribbean harmony .Some of these people are so boldface they will come into your function without being invited and want to dictate what music should be played…the obvious ‘Jamacian music’Music promotions are only about Jamacia They sees other Caribbean woman only as ‘babies mothers’ never want to have full commitment with them,After having a couple of kids they go back to the ‘Kind’, and still wants to run their exes home,of which most never support their kids.(Well the woman has to take so of the blame also).
Now many of Jamacian today will not remember the times when Trinidad$Tobago 🇹🇹 Was their saviour,and this recent examples clearly shows how ungrateful minded these people continue to be toward us,From the leaders of the late 50s onto now.Every time they needs us we are there,it is time Trinidad and Tobago wake up.
We need ONE air line in CARICOM.
Leaders must come together and work it out.
LIAT was on it’s death bed and Antigua blamed Barbados.
Now T&T blaming JA, who nest going to blame who?.
No, that you get things off your chest I hope you are feeling better now.
When you speak about can’t find many products from the other Caribbean island on Supermarket shelves in Jamaica, that’s a blatant lie.
Our Supermarket shelves are well represented with products from the other Island.
Neil this is the largest load of Bovine Excrement that I have read in a while…Jamaica not supporting other Caribbean brands?…Ask Trinidad or Barbados which country is their largest market. Sunshine Snacks out of Trinidad and Wibisco out of Barbados enjoy huge market share in Jamaica. Yet the reverse is not true, Jamaican products have a harder time getting in the Eastern Caribbean. We are not the ones with the chip on our shoulder and we definitely dont need any Caribbean island bailing us out of anything. The reality is CAL is expensive in comparison to Airlines like Jet Blue.
This Neil person is seriously delusional. What a rambling almost incoherent mess of a post! Let’s be clear on one thing. Other than regional trade and intra-regional travel, there is NOTHING that Jamaica needs from T&T or any of the other islands. That you think T&T had to bail Jamaica out is the biggest joke I have seen today. And what are you, like 80+ yrs old talking bout Federation? You still butt hurt over a decision the Jamaican people made COLLECTIVELY over 50 yrs ago that would have benefitted our plight towards independence? Get over yourself. Jamaicans do not need validation from anyone and that gives us that air of confidence that we exude, unapologetically. That some of you can’t handle that is NOT our problem but yours. CAL took on far more than they could handle and FYI for all thinking they acquired Air J’s debts, they did not. The losses they experienced are caused by various reasons and have nothing to do with Jamaica. They just cannot compete in the market efficiently and they failed to really leverage Air J’s profitable routes to gain market share in addition to rising fuel costs and poor management. I know people whom I used to work with at Air J, working with CAL and they have all expressed a complete lack of confidence in management’s ability to run the airline.
Caribbean Airlines is simply BWIA on repeat, same management systems that caused BWIA to close to consolidate its years of losses. It is really amazing that they would try to use Jamaica as a whipping horse as to the failure of cal and not look at the weaknesses the airline has. The airline continually operates to destinations being served by other airlines who have a greater market share to that destination and not look at other destinations that their competitors do not offer. The fleet of the airline, specifically the ATR’s does not provide a much-needed yield in revenues. Instead of fostering alliance agreements to indirectly market the airline and sell seats on its competitor’s equipment the airline forgoes it for greed and flies to areas where the operating cost are way too high and instead of a profit (audited) they again make a loss.
Air Jamaica would have gained more had it been purchased/merged with carriers who were vying to purchase the airline when it was in a financial strain however this would have been direct competition to Cal. But the fact of blaming then air jamaica on cal’s failure doesn’t stand up logistically.
If cal wants to make this work, they need to work on the synergies of making travel in the airline work and stop trying to bolster the ego of a said few. Cal was and will continually be a liability as the airline is riddled with too much political interference because of the Government of Trinidad & Tobago’s 51% stake in the airline.
A stake in Liat would open so much possibility for CAL in that regional uplift can be operated under LI while BW focus its fleet on its core market.