State carrier Caribbean Airlines has officially launched its service from Port of Spain to Orlando, Florida.
A CAL 737 aircraft touched down at Orlando International Airport on Tuesday afternoon with more than 150 passengers aboard.
Many of the passengers were parents with plans to take their children to experience Disney World Orlando as a reward for success in the SEA examination.
CAL acting chief executive Robert Corbie told the Express at Piarco minutes before the inaugural flight that the direct route to Orlando made it easier for vacationing parents and children.
The flight from Piarco International Airport at 10 a.m. on Tuesday was 97 per cent filled, he said.
But what was more surprising, he said, was that the return flight had 121 passengers from Florida coming to Trinidad and Tobago.
Airline vice-president, Operations, Capt Thomas Lawrence, piloted the 737 aircraft to Orlando and back again Tuesday.
CAL hosted a flight reception at the Hyatt Regency at Orlando airport on Tuesday to welcome travel agents and Orlando city officials.
It was attended by Orange County Mayor Teresa Jacobs and Trinidad and Tobago’s General Counsel, Miami, Dr Anil Ramnanan, among others.
CAL will operate the Orlando route twice a week.
AIR Jamaica last year dropped below American Airlines as the number one carrier of passengers from the United States, as new entrants to the market aggressively grabbed up market share while the national carrier — now owned and operated by Caribbean Airlines retreated from unprofitable routes.
Recently published data from the US Bureau of Transportation Statistics showed the volume of passengers travelling from the US to Jamaica increased by five per cent over year-earlier levels to 1.48 million in 2010.
Air Jamaica brought in approximately 315,370, or 21 per cent of air travellers from the US last year, compared to 428,810, or 30 per cent in 2009. At the same time, American Airlines numbers also reflected a decline — 371,580 passengers, or 26 per cent in 2009 compared to 341,940, or 23 per cent of the overall market last year, which placed it as the number one carrier.
The decline for both Air Jamaica and American, were due to growth in numbers for newcomers JetBlue, which grew its share from three per cent in 2009, when it started operating, to 10 per cent last year, and AirTran, which was almost non-existent in 2009 and which carried six per cent of all arrivals from the US in 2010.
Delta Airlines also increased its share of arrivals from 12 per cent in 2009 to 16 per cent in 2010.
AirTran’s insurgence largely reflected its ability to snap up shares in markets within which Air jamaica has ceased operations. For instance, AirTran carried 32,600 of the 46,920 passengers arriving from Baltimore last year, a route which Air Jamaica ceased servicing in June 2010, while the new carrier brought in 12,060 of the 38,860 passengers from Orlando, when the national carrier stopped flying in March 2010.
At the same time, AirTran carved out a piece of the Atlanta route for itself, claiming 16 per cent of that route for itself, even though it really translated into overall higher numbers from Atlanta as Delta — the route leader — flew in 168,060 persons in 2010, or 23,000 more passengers than the year before.
Growth in the Atlanta numbers for Delta, coupled with larger numbers arriving from New York — a route which Air Jamaica has far dominated for a long time — translated into a higher share of the Jamaica market for that airline, but JetBlue’s numbers may be a more meaningful threat to the national carrier.
JetBlue grew its share of New York from the 15 per cent of the passengers it carried in 2009 — even though it started operations in May — to 37 per cent in 2010, or right next to Air Jamaica, which carried 40 per cent of the passengers from New York, down from 60 per cent a year before.
The only other market for which Air Jamaica has maintained dominance — Fort Lauderdale — shrank overall from 218,820 arriving passengers to 193,520, which resembled the drop in arrivals from the other Florida-based international airport located in Miami, from where American alone flies. Arrivals from Miami fell from 292,180 in 2009 to 264,680 last year.
The shift in market shares not only made American overtake Air Jamaica as the number one carrier from the US, but it placed Delta at number three, above US Airways, which, with its monopoly on flights from Charlotte, carried 133,830 passengers, or 14 per cent of all persons arriving from the US last year.
Data from the Jamaica Tourist Board (JTB) showed that 1.24 million of the 1.48 million arrivals in 2010 represented stopover tourists, while the growth in numbers was primarily due to higher arrivals of residence from the north-east, or more specifically from New York and Pennsylvania.
BASSETERRE, St. Kitts – As REDjet plays a waiting game with authorities in Jamaica and Trinidad and Tobago, it’s continuing to explore other markets, the latest being confirmed as St. Kitts and St. Marteen.
St. Kitts and Nevis Prime Minister Dr. Denzil Douglas has revealed that his Government is looking at an application from the low-budget carrier to operate on the Barbados-St. Kitts-St. Maarten route, and to another Caribbean island which he did not disclose.
And although no final decision has been made as yet, Prime Minister Douglas has already declared that the Barbados-based carrier will be welcomed to operate into and out of the twin-island federation. It has already flown into St. Kitts’ Robert L. Bradshaw International Airport on charter with the West Indies and cricket Indian cricket teams.
REDjet itself has also hinted at more routes to come soon, posting on its Facebook page yesterday: “REDjetters, we know many of you are anxious to know what our new routes are. We are eager to tell you and will do so when all arrangements are finalised. Stay tuned to Facebook, Twitter and www.flyredjet.com for the latest news!”
The Eastern Caribbean is expected to feature prominently in the new routes. In addition to St. Kitts, management of the airline also recently had preliminary discussions with representatives of the Grenada Airlift Committee as a first step to making an official application for a license to serve that country.
So far, regular commercial flights only take place between Barbados and Guyana. REDjet is awaiting approval from Jamaica and Trinidad and Tobago which have both claimed there are safety issues which must be resolved before permission is granted.
REDjet, however, has maintained that the delays in granting permission have to do with protecting Trinidad and Tobago’s national carrier Caribbean Airlines (CAL) in which Jamaica has shares.
Although supporting REDjet, Prime Minister Douglas who’s also the new CARICOM Chairman, said during the just-ended Heads of Government meeting which his country hosted, that while it is important to have more affordable and reliable air transportation within the region, “we obviously must be concerned about the sensitivities in preserving those regional airlines that are plying the same route within the Community.”
“It is not a case of trying at all to prevent competition, but ensuring that the sensitivities surrounding this issue are also completely understood,” Prime Minister Douglas told reporters.
Barbados’ Prime Minister Freundel Stuart has accused Trinidad and Tobago of second- guessing the certification by his country.
“We in Barbados certified REDjet in Barbados as safe. We are being second-guessed on that. Other people certify their aircraft and we don’t second-guess them,” he said at the CARICOM Heads meeting in St. Kitts.
“I made that point at the meeting but if this is the way these issues are going to be handled, I only want to know the rules. I just want to know how people are playing the game; I can play the game as well as they can play it.”
ST. JOHN’S, Antigua – News that LIAT workers will be paid late this month and strike action that began yesterday and continues today over contract negotiations, are creating new challenges at the regional airline.
Employees were informed via memo yesterday afternoon that the airline would be late with salaries this month.
The news came as more than 100 Antigua-based ground staff, represented by the Antigua and Barbuda Workers Union (ABWU), walked off the job yesterday morning, insisting on a three percent pay increase for 2009-2011 and the following two years. The union had previously been asking for a five percent increase.
However, LIAT is reportedly sticking to its two percent offer.
In a statement issued yesterday, Corporate Communications Manager Desmond Brown said LIAT is unable to meet “the huge demands”. He said the company had proposed increases which are in line with the current financial and economic conditions.
Brown said LIAT looks forward to the return to the negotiating table and a commitment to exhaust all discussions and grievance procedures before seeking external assistance.
The airline’s spokesman said LIAT’s flight schedule was not affected by the work stoppage yesterday, even though the company was caught off guard.
Brown said LIAT had not been notified of the issues prior to the strike action.
“In fact, LIAT met with the ABWU four days ago on Friday 24th June to discuss the closure of the City Ticketing Offices. Those discussions were amicable and resulted in reasonable settlements for both sides. It is therefore with some disappointment that the company views today’s action,” he said.
A protocol governing those closures, as well as the Voluntary Severance (VSEP) and Early Retirement Programme which is underway, is expected to be announced soon. The union leaders and LIAT representatives sat side by side last Friday at a press conference to make that announcement.
However, ABWU General Secretary Senator David Massiah said on local radio this morning that the two issues were separate and distinct.
He also said it was the unions who were caught off guard with the news that workers would not receive their June pay in time.
“Every union leader that I had discussions with yesterday was caught by surprise,” Senator Massiah said. “A situation like this could not have just arisen yesterday so they (LIAT) had an opportunity to draw in the unions since last week when they had all of us there to talk to.”
The trade unionist pointed out that this latest development affects all LIAT staff and unions would have to decide what the next course of action would be.
KINGSTON, Jamaica – Jamaica should soon have direct flights to China, the fastest growing market for outbound travelers in the world.
China’s newly appointed Ambassador to Jamaica, Zheng Qingdian yesterday gave a commitment to pursue the introduction of direct flights between Beijing and Montego Bay, during a courtesy call on Tourism Minister Edmund Bartlett.
Ambassador Qingdian said he would be facilitating discussions with China Air to have the new flight arrangement implemented.
The Chinese diplomat also discussed with Minister Bartlett investment prospects in tourism and extended an official invitation to the Minister to meet with his counterpart in China in September to explore areas for increased collaboration.
Minister Bartlett expressed enthusiasm about the opportunities for greater collaboration with China, particularly in tourism.
“China represents one of the target markets for increasing tourist arrivals to the island and establishing direct flights between us and them is a major step in having Chinese visitors coming here,” the Minister said.
China is the top destination in Asia and the Pacific region. According to the World Travel and Tourism Council (WTTC), it is forecast to provide more than 100 million visitors for other destinations by 2018. Chinese visitors are particularly attractive as they are likely to spend during their travels, as indicated by statistics compiled by the WTTC.
Fresh from his trip to Russia last week and South America last month, Minister Bartlett stressed that “Brazil, Russia, India and China, commonly referred to as the BRIC countries, represent strong potential for growing visitor arrivals to Jamaica. As a result, these countries will increasingly become important points of focus for Jamaica’s marketing efforts.”
Some 10,000 additional air seats have been secured to bring in visitors from South America over the next six months. This is expected to boost arrivals from the usually colder southern continent during the summer period in Jamaica, which is traditionally the off season for the tourism industry.
ST. GEORGE’S, Grenada – REDjet is preparing itself to seek approval from authorities in Grenada to get that country added to its list of destinations.
A statement by the government said that Chairman and CEO of the region’s first low-cost carrier, Ian Burns, recently held preliminary discussions with representatives of the Grenada Airlift Committee as a first step to making an official application for a license to service the route.
Minister for Tourism and Civil Aviation Peter David described the discussions as “only preliminary,” saying government will be prepared to consider all factors in the interest of the tourism sector and the Grenada economy.
“We are interested in increasing travel within the region, both in terms of tourism and the integration movement,” he said.
When asked about the likely impact of the Barbados-based REDjet on longtime regional carrier LIAT, David said the administration is supportive of the sustainability of LIAT but stressed that the government also has a responsibility to restore the declining numbers of persons traveling within the region.
Burns said the REDjet’s goal is simply to provide low fares to Caribbean travellers.
“We want to be able to help everyone to fly. Our objective is to stimulate travel and growth within the region and not to take business from anyone,” he said.
In response to queries that airlines that had the same approach and are now out of business, the REDjet CEO remarked that their business model has been tried and tested and has sustainable potential.
It could take up to 12 weeks for all the pieces to fall into place, following the preliminary round of talks, before the airline actually commences operations.
Representatives from both sides are expected to meet prior to the application for an air transport licence, and the submission of a proposal and recommendation to Cabinet by the Grenada Airlift Committee.
REDjet is awaiting approval from the authorities in Trinidad and Tobago and Jamaica, and currently only flies between Barbados and Guyana.
ST. JOHN’S, Antigua – The head of one of the unions representing LIAT workers has suggested that the travelling public might need to boycott the airline in a show of support for employees who’re in dispute with the company over job cuts.
General Secretary of the Antigua and Barbuda Workers Union (ABWU) Senator David Massiah also hinted strongly at industrial action, after LIAT informed 70 workers at its City Ticketing Offices (CTOs) across the region that they would be made redundant at the end of this month.
“All the public has to do is to weigh in and give the sympathetic vote and maybe the travelling public might begin to protest to LIAT management and say ‘we will not fly with you until you settle your issues with the union’,” he said on Observer Radio yesterday.
The trade unionist said the workers themselves had told him they are prepared to take action.
“Whatever the next option would be, it’s one that we probably would not like because unions would have to begin to exercise options and then it would affect, more or less, the general public,” he said. “We have to do what we have to do…We will have to sit down as unions throughout the region and consider our options if LIAT is not going to respect the positions going forward.”
Senator Massiah and Chairman of the Regional Consultative Council of Trade Unions within the LIAT System Senator Chester Humphrey are outraged that the redundancy letters were sent to staff earlier this week, although the company was still in negotiations with the unions and had scheduled a meeting for today to discuss the same issue.
“I can’t see that we are seeking to have dialogue in a way to address certain problems and management continues to flex their muscle as they like,” Senator Massiah said.
However, in a statement issued after Massiah’s comments, LIAT said that it had been involved in discussions with the unions for over a year about the need to close the CTOs and insisted that “every effort is being made by the company to work with its union partners to facilitate the smoothest possible transition for employees at the LIAT CTOs during this period”.
“As has been the case to date, the company remains committed, as far as possible, to dialogue and cooperation with its employee representatives during this difficult period,” it said.
LIAT, which expects to save about US$3 million every year by closing the CTOs, said the move reflects the prevailing trend by airlines throughout the world, including the Caribbean, towards a shift in distribution and sales to telephone, travel agents and internet-based channels.
“The closure of the CTOs at this time is a reflection of the need for immediate cost cutting in the face of a continuing difficult regional and international economic situation which has seen significant falloffs in airline revenues at a time of escalating costs,” the statement said.
In addition to closing the CTOs, LIAT has implemented a company-wide Voluntary Separation and Early Retirement Programme which workers have to respond to by today. The deadline was initially last Friday, a week after the offer was first made, but it was subsequently extended.
The unions had also expressed disappointment that they had not been informed that LIAT was sending the voluntary separation letters to staff, and that it happened days before a meeting to discuss that and the CTO closures. That meeting was postponed until today.
ATLANTA, USA – AirTran Airways, a wholly owned subsidiary of Southwest Airlines, on Thursday began daily nonstop service between Hartsfield-Jackson Atlanta International Airport and L.F. Wade International Airport in St George’s, Bermuda.
Passengers took part in a colourful celebration at the airport, featuring traditional Gombey dancers and a steel drum band. A special performance by the Atlanta Falcons cheerleaders also wowed the crowd as part of the “Touchdown Bermuda” themed event. In addition to welcoming passengers, the cheerleaders were heading to Bermuda for their annual swimsuit calendar photo shoot.
Bermuda is the latest destination in AirTran’s international route network, which includes: Aruba, Cancun, Mexico; Montego Bay, Jamaica; Nassau, Bahamas and Punta Cana, Dominican Republic.
“AirTran Airways is committed to providing our customers with excellent service and low fares to fantastic destinations like Bermuda,” said John Kirby, AirTran Airways’ senior director of planning. “This new, daily service makes it easier than ever for our loyal customers to experience the famous hospitality, pink-sand beaches and unique island culture of Bermuda.”
Atlanta becomes the second city in AirTran’s network to offer nonstop service to the island getaway. The low cost carrier began offering flights to Bermuda from Baltimore/Washington International Thurgood Marshall Airport (BWI) last month.
“We are excited to partner with AirTran Airways in providing new service to our island,” said Patrice Minors, Minister of Business Development and Tourism for Bermuda. “Atlanta is a wonderful US city with many Bermuda fans, friends and family residing there. We are happy that this service will help continue to build a relationship while offering travelers an easy escape to Bermuda.”
BRIDGETOWN, Barbados – REDjet has scrapped plans to operate flights between Jamaica and Trinidad and Tobago, while it has postponed the service between Barbados and Jamaica for another two months.
The Barbados-based airline said “ongoing regulatory delays” in the twin-island republic and Jamaica had forced it to take those decisions.
Notices of the cancellation of planned service between Jamaica and Trinidad and the suspension of the Barbados-Jamaica flights until July 24, were delivered in email1313131313131313131313131313131313131313s to booked passengers yesterday, the same day that Air Jamaica and Caribbean Airlines (CAL) finalised their merger.
Even though the delayed and cancelled routes were still in the list of services available on REDjet’s website, up to this morning, passengers who get past the step of choosing destinations and travel dates are then shown a calendar showing “No Seats Available” for every date.
The company said the delays were out of its control.
For the postponed flight, passengers who’ve already paid have been told they will be issued a full refund.
“REDjet is extremely disappointed for all of our passengers and remains committed to fight to bring you the lowest fares,” said one of the email1313131313131313131313131313131313131313s.
REDjet has made several attempts to get the Jamaica and Trinidad services off the ground but has repeatedly delayed start-up as it awaits approval from the authorities in both countries.
The Civil Aviation Authority (CAA) in Jamaica was supposed to have met yesterday to discuss the REDjet application but there has been no word on whether a decision was made. The situation is also the same in Trinidad.
Only REDjet service between Barbados and Guyana has started without any problems. The first flight was on May 10.
ST. JOHN’S, Antigua – Scores of workers in Antigua and Barbuda were yesterday considering their job future as two of the island’s most prominent businesses and regional airline LIAT, based in that island, moved to cut jobs. Efforts are being made by government to jobs at another company which has announced its closure.
The decision by the Observer Media Group and Hadeed Motors Ltd. to offer staff voluntary separation packages came a day after LIAT informed more than 70 workers at their City Ticketing Offices (CTOs) that they would be getting their pink slips.
The other company, Antigua Brewery, earlier this week indicated that it will be moving its production operations to neighbouring St Vincent, putting about 42 jobs on the line.
Observer and Hadeed blamed financial difficulties for their decisions, while the LIAT move is part of the airlines effort to cut expenses. The company had previously announced that it would be closing its CTOs throughout the region in hopes of saving US$3 million annually.
The redundancies at LIAT will take effect on June 30. Meantime, other airline workers have until tomorrow to decide whether they will accept a voluntary separation and early retirement package offered by the airline.
Employees at Hadeed Motors and the Observer Media Group will have to make a similar decision in coming days.
In letters to its approximately 28 workers yesterday, Hadeed gave them a month to decide.
The correspondence said that car sales had plummeted by more than 60 percent in the past three years and the company could no longer continue absorbing the losses.
“No company can sustain such a situation for such an extended period of time, and should we continue to maintain the current level of employment, Hadeed Motors Ltd would not be able to survive, and any equity payment due to our longstanding employees could be in jeopardy,” it said.
The 75 workers at Observer Media Group – which includes The Daily OBSERVER and OBSERVER Radio – have been given until next Friday, June 10, to express interest in voluntary severance.
The letter from Chairman Winston Derrick said the company has been seriously affected by a significant contraction in the local economy and is being forced to reduce the cost of operations. He later told the newspaper that the aim is to trim 25 percent of costs.
“To this end, we have been reviewing the expenses associated with running our business activities with a view to seeing where cuts could be made. As the next step in the process of reducing costs we are giving persons, who so desire, the opportunity to apply for a voluntary separation package from the company,” the memo stated.
Derrick said that lay-offs could follow if enough people do not express interest in the offer.
“If nobody is being voluntarily separated then we’ll have to take the next step and maybe we’ll lay off persons for a period of time, but we haven’t gotten that far yet,” he said.
Meantime, Finance and Economy Minister Harold Lovell met on Tuesday with a delegation representing Empresas Leon Jimenez SA, the company from the Dominican Republic that owns Antigua Brewery, in efforts to keep the business open.
He said the government is exploring a number of options designed to preserve the production of beer and soft drinks in Antigua. The company has said the economic downturn is taking a toll.
“We understand the circumstances that have led the company to take this decision,” Lovell said, “but we also understand that, under the right circumstances, the production of beer and soft drinks can still be a profitable and successful sector in Antigua. We are therefore looking at all the options, including sale, lease, new investment, and others to revitalize the sector.”
International Director for Antigua Brewery Hector Marine said the company was willing to work with the government to arrive at a resolution that would ensure the company does not completely abandon the Antigua market.
Both sides agreed to resume discussions within a week regarding the proposals that had been put on the table.