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.
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.
Compared to Air Jamaica, Japan Airlines is a behemoth. The Japanese Government has injected $10 billion cash into JAL and the airline restructuring will include cutting over 15,000 jobs, slashing unprofitable routes, reducing pensions, debt forgiveness and removal from the 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.
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
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