Air Jamaica + Japan Airlines = Dead

The air travel business is experiencing some fallout from the global economic downturn but remains a lucrative and growing industry. Air Jamaica and Japan Airlines are two carriers that have been in the news recently as both of them experience financial hardships.

Air Jamaica

After many years of turmoil the Jamaican Government is in the process of winding down the operations of Air Jamaica and merging with Trinidad and Tobago’s Caribbean Airlines. The fact that Air Jamaica failed is not attributed to lack of demand or low earnings but is largely due to mismanagement over the years that results in it not being able to compete with competitors in the marketplace. So now as the fate of Air Jamaica is sealed there has been a whirlwind of discussions on what the loss of Air Jamaica means to the fragile economy of Jamaica and how related services and the hundreds of workers that will lose their jobs will be affected.

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Japan Airlines

Compared to Air Jamaica, Japan Airlines is a behemoth. The Japanese Government has injected $10 billionΒ  cash into JAL and the airline restructuring will include cutting over 15,000 jobs, slashing unprofitable routes, reducing pensions, debt forgiveness and removal from theΒ  Tokyo Stock Exchange. JAL is fortunate thought o have a reset button but Air Jamaica on the other hand has had it’s reset button pressed so often it no longer works.

Japan Airlines died when it drowned in a pool of debt but was reborn with the help of it’s government and massive restructuring. Air Jamaica on the other hand is dead forever and it saddens the hearts of many Jamaicans to see one of our few beacons of national pride go out. R.I.P. Air Jamaica, Good luck Japan Airlines.

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More Details

Air Jamaica Flying against the jet stream
Air Jamaica: rescuing a treasure
Japan Airlines files for bankruptcy protection
Up in the air: Can JAL’s fortunes be turned around?
Airline Industry Overview
Prime Minister’s Faux Pas on Air Jamaica
Government allocating JA$27 billion for Exit Cost of Air Jamaica
Air Jamaica can be Profitable in Two Years

[sad]

6 thoughts on “Air Jamaica + Japan Airlines = Dead

  1. Aww! I remember the odd orange seating from back in the day. Sorry Air Jamaica. The global industry, however, needs a lot of consolidation before it has a hope of getting better.

  2. [jamaica]
    It is sad to see the Jamaican Air Jamaica go down like this. But i blame the Jamaican mentality and business sense for it. I thought there would be an outrage against the sale but more so it is because it is going to T&T owned companies. They are better managers than us in a heart beat.

    National Airlines should not be on Government books…they should be able to sustain themselves…anytime government comes into play we have all these emotions..

  3. It is really tragic the way this national treasure was mismanaged. It now seems as if the government is more willing to allow the Trinis to snap it up cheap as opposed to making hard reforms which could keep it in local hands.

  4. I always was amazed by how such a small country owned its own airline. I am sorry to see it go as I have friends from there that used that for travel.

  5. JAL was a victim of oyaji mismanagement syndrome: the same old fossils in control for decades, continuing ancient business practices that have no place in the real world. Plus, the whole not replacing a bolt or two on airplanes because all those little expenses add up to one big headache fiasco killed a lot of the public trust.

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