Air JA to lose more routes

The head of the board of the Air Jamaica, Shirley Williams says the national airline could be cutting more routes as part of its cost saving move.



Air Jamaica now operates 16 routes and according to Miss Williams, at present they are all making losses.



In January, Air Jamaica slashed five routes from its flight schedule, months after selling its London slots to Virgin Atlantic.



Miss Williams says there is now keen consideration on whether to cut more routes.



Speaking this morning on Real Business on Power 106 she said the decision to cut a route could not be made in haste.



Air Jamaica has racked up accumulated losses of $86 billion s and now has an overall debt of about US$500 million or $40 billion Jamaican dollars.



A recent study by the International Finance Corporation, a subsidiary of the World Bank indicates that 43 per cent of Air Jamaica expenses cover administrative costs.



Air Jamaica has also been incurring $1.2 million a month for the two A340 aircraft that were leased to service the London routes.



Miss Williams says the planes are now being repaired and that one should be returned to the company which leased the aircraft by August 29 and the other by October.



In the meantime, Miss Williams says it’s becoming more difficult for the Government to meet the March 31 deadline to divest the national airline.



According to her, the depression in the international economy is among the contributing factors.



Miss Williams also revealed the board of the national airline will announce a new chief executive officer next week.



Williams Rogers has been operating in that capacity since Miss Williams lost that executive function just over two months ago.