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More News On Air Jamaica  
User currently offlineReggaebird From Jamaica, joined Nov 1999, 1176 posts, RR: 0
Posted (7 years 12 months 4 days 18 hours ago) and read 7793 times:

I found this very interesting article in the Jamaica Gleaner:

http://www.jamaica-gleaner.com/gleaner/20061124/business/business36.html

_____________________________________________________

Government Plan For Air Jamaica Raises Public Concerns
published: Friday | November 24, 2006


Air Jamaica's CEO, Michael Conway, and Jamaica Finance Minister Omar Davies will shortly seek Cabinet approval of a new restructuring plan for Air Jamaica. The plan is now known, officially, to include restarting several USA routes that were shutdown in 2004 as well as a change of the airline's fleet from Airbus to Boeing planes. This component, in particular, has led to very vocal opposition from citizen groups under the impression that the fleet swap would decrease safety. This is the latest in a long list of efforts to stem the losses and bring viability to the government-owned carrier.

Ministry of Finance Addresses Safety Concerns

Portions of the plan that were leaked to the public last month revealed that the carrier was considering replacing its Airbus aircraft with those from US-based Boeing due to poor performance, reliability and economics. According to Minister Davies, "The reports were controversial in that they implied we were going to replace new and safe planes with old and unsafe ones. The public expressed its concerns and we have since clarified the situation." Mr. Davies revealed that the US plane-builder is offering the carrier late-build 757, early-build 777 and new-generation 737 aircraft that fly farther and carry more freight than the present European fleet. "Boeing have made some interesting presentations and we need to act quickly if we decide to pursue the options," he said.

Air Jamaica moved fully to an Airbus fleet in the mid to late 1990s, when the airline was controlled by Gordon 'Butch' Stewart's AJAG Group and the Government had a minority stake - first 25 and then 49 per cent. At the time Stewart boasted that not only did Air Jamaica have the newest fleet in this region, but defended the shift to Airbus on grounds that the mainly A310, A320 and A321 aircraft were more efficient to operate and most suitable for Air Jamaica's routes. AJAG claimed, too, that it had good lease arrangements.

Threat of Closure

During its decade of ownership by AJAG, Air Jamaica lost nearly US$800 million, including US$113 million during the last year of Stewart's control in 2004. Stewart, however, blamed much of the accumulated loss on problems beyond his group's control, including, during the early period, restrictions on where Air Jamaica could fly in the U.S. because of weak regulatory oversight in Jamaica, and then a decline in global travel and high fuel price that followed the terror attacks in the United States in 2001.

When the Government took back the airline, Davies promised to cap government subsidies at US$30 million annually, but Air Jamaica lost US$136 million in 2005, a situation that caused the IMF, in a July report, to repeat its long-held view that perhaps radical surgery was necessary. "If Air Jamaica's restructuring plan failed to improve finances, the authorities may need to reconsider the merits of maintaining a flag carrier," the IMF said.

Davies, however, suggested that closure of Air Jamaica, which transports nearly 50 per cent of Jamaica's passengers and about a third of all tourists to the island, was not an option for the Government at this time. Jamaican officials, across administration, have insisted that the airline is crucial to the country's key tourism industry. "It is a pragmatic position," Davies said. "We have seen in other areas where other airlines use their monopoly positions (after the collapse of national carriers) to push up fares to the detriment of countries."

Birds of a Feather...

Other Caribbean carriers are not faring much better. BWIA, of Trinidad and Tobago, is in its final days before shutdown and the startup of its fresh-start successor, Caribbean Airways. A merger between Air Jamaica and BWIA has been floated, and rejected, in the past. Davies indicated that nothing like that was on the agenda at this time, but suggested that there were possible areas of cooperation. "There are possibilities, for instance, in the standardisation of fleet," he said.

BWIA mainly flies Boeing aircraft having pulled back in the late 1990s from an intended move to an all-Airbus fleet. Sharing part inventories and technical personnel would possibly be an advantage if Air Jamaica and Caribbean Airways were to standardise their fleet.
______________________________________

[Edited 2006-11-28 02:47:16]

69 replies: All unread, showing first 25:
 
User currently offlineBWIA 772 From Barbados, joined May 2002, 2200 posts, RR: 2
Reply 1, posted (7 years 12 months 4 days 17 hours ago) and read 7712 times:

This is an interesting development. I wonder if they have talked to their Trinidadian counter part especially interms of 737 training and maintenance. Hey Caribbean Airlines may want to make a joint order they may expand their fleet sooner than expected if the rates are good.


Eagles Soar!
User currently offlineBeeweel15 From United States of America, joined Nov 2003, 1778 posts, RR: 0
Reply 2, posted (7 years 12 months 4 days 16 hours ago) and read 7667 times:

Quoting Reggaebird (Thread starter):
early-build 777

The possibility of a B777 in JM colors is extraordinary I can hardly wait.


User currently offlineBeeweel15 From United States of America, joined Nov 2003, 1778 posts, RR: 0
Reply 3, posted (7 years 12 months 4 days 15 hours ago) and read 7643 times:

Quoting BWIA 772 (Reply 1):
Hey Caribbean Airlines may want to make a joint order they may expand their fleet sooner than expected if the rates are good

Possibly some of the 737's that caribbean are returning could go to JM


User currently offlineDrerx7 From United States of America, joined Jun 2000, 5201 posts, RR: 8
Reply 4, posted (7 years 12 months 4 days 15 hours ago) and read 7640 times:

Restart cities cancelled...Houston maybe? for a 3rd time...


Third Coast born, means I'm Texas raised
User currently offlineBWIA 772 From Barbados, joined May 2002, 2200 posts, RR: 2
Reply 5, posted (7 years 12 months 4 days 15 hours ago) and read 7628 times:

Quoting Beeweel15 (Reply 3):
Possibly some of the 737's that caribbean are returning could go to JM

It could be a possibility but I doubt it. It seems as if JM is dealing directly with Boeing while Caribbean Airlines is dealing with ILFC.

Regards



Eagles Soar!
User currently offlineBeeweel15 From United States of America, joined Nov 2003, 1778 posts, RR: 0
Reply 6, posted (7 years 12 months 4 days 15 hours ago) and read 7604 times:

Quoting Reggaebird (Thread starter):
Sharing part inventories and technical personnel would possibly be an advantage if Air Jamaica and Caribbean Airways were to standardise their fleet.

This can save both carriers money on one end but they do compete on the other end especially in the eastern caribbean and while BW/Caribbean are scaling back this would be giving them and others to gain marketshare. So lets hope they do more than that.


User currently offlineILSApproach From United States of America, joined Aug 2004, 410 posts, RR: 0
Reply 7, posted (7 years 12 months 4 days 10 hours ago) and read 7522 times:

Can't wait for my yearly Feb trip to Negril via Mo BAy!!!

That new teminal addition at MJB is great, especially the view facing the city.those large windows, floor to ceiling are nice too!

Quite a few airlines serving MJB now..........AA, COA, Delta, NW, US Airways, UAL, Spirit, Sun Country, Condor, AC, Thomas Cooke, USA3000, First Choice, LTU..........even Virgin has been flying a 744 into MJB daily. I know I forgot a few......mostly Euro charters in the peak season, and added freq of Us carriers. You gotta love that Virgin 744 and 6Y A340 landing and taking off 8500' of runway!!!!

Put in MKJS into arrival airport on Flytecomm.com ..............also works for Asian and Euro airports too!!

Mike @ MSP


User currently offlineILSApproach From United States of America, joined Aug 2004, 410 posts, RR: 0
Reply 8, posted (7 years 12 months 4 days 10 hours ago) and read 7517 times:

Still wish Air Jamaica would add MSP! It is still the largest originator of charter flights to warm climates in North America!! I meant 6Y A340.

Mike @ MSP


User currently offlineAviator27 From , joined Dec 1969, posts, RR:
Reply 9, posted (7 years 12 months 4 days 7 hours ago) and read 7441 times:

I know the A321's lack the cargo capacity Air Jamaica needs. The only airplane that can fulfill that role is the B757. A lot of VFR traffic carry plenty of cargo back to Jamaica, and the B757 can carry a lot of cargo. Perhaps some B787-3 are in the future of Air Jamaica. That is the rumor I have heard anyhow. The A340's are going to be replaced by B777. I'm not sure where the B737 fits into the line-up. Regards.

User currently offlineJAM747 From United States of America, joined Feb 2005, 550 posts, RR: 1
Reply 10, posted (7 years 12 months 4 days 6 hours ago) and read 7378 times:

On previous trends here it was highlihted how much money JA spent on sending excess baggage by truck to other airports because some of their planes could not carry the load. Many Jamaican who return especially for the holidays need to have their bagage with them especiallyt when travelling with children. I have heard that their current short leased 757s have done very well for them.

User currently offlineReggaebird From Jamaica, joined Nov 1999, 1176 posts, RR: 0
Reply 11, posted (7 years 12 months 4 days 2 hours ago) and read 7267 times:

Quoting Beeweel15 (Reply 2):
Quoting Reggaebird (Thread starter):
early-build 777

The possibility of a B777 in JM colors is extraordinary I can hardly wait.

I wonder if these are some of the A-market machines from United, British Airways or Cathay.

Reggaebird


User currently offlineCHRISBA777ER From UK - England, joined Mar 2001, 5964 posts, RR: 62
Reply 12, posted (7 years 12 months 4 days 1 hour ago) and read 7242 times:

Quoting Reggaebird (Thread starter):
the US plane-builder is offering the carrier late-build 757, early-build 777 and new-generation 737 aircraft that fly farther and carry more freight than the present European fleet.

An early build 777 that flies farther and carries more freight than an A340-313X?

European fleet?

Sounds like some good old US-backslapping to me.



What do you mean you dont have any bourbon? Do you know how far it is to Houston? What kind of airline is this???
User currently offlineMD90fan From Bahamas, joined Jul 2005, 2931 posts, RR: 7
Reply 13, posted (7 years 12 months 4 days 1 hour ago) and read 7238 times:

Quoting Aviator27 (Reply 9):
The only airplane that can fulfill that role is the B757

The 757 would IMO be ideal for routes to JFK, MIA, ATL (only with DL codeshare), FLL and YYZ.

Maybe JM should consider acquiring some Q400s or a smaller jet to increase frequencies cities in the Caribbean such as NAS,CUR,BON and Grenada.

Just my  twocents 



http://www.devanwells.blogspot.com/
User currently offlineReggaebird From Jamaica, joined Nov 1999, 1176 posts, RR: 0
Reply 14, posted (7 years 12 months 4 days 1 hour ago) and read 7208 times:

Quoting MD90fan (Reply 13):

The 757 would IMO be ideal for routes to JFK, MIA, ATL (only with DL codeshare), FLL and YYZ.

Delta announced last month that they are canceling their codeshare agreement with Air Jamaica.


User currently offlineReggaebird From Jamaica, joined Nov 1999, 1176 posts, RR: 0
Reply 15, posted (7 years 12 months 3 days 21 hours ago) and read 7081 times:

Quoting CHRISBA777ER (Reply 12):
An early build 777 that flies farther and carries more freight than an A340-313X?

European fleet?

Sounds like some good old US-backslapping to me.

How is this US-backslapping? Why is it any different than the old owner touting the Airbus fleet as "more modern and safe"? Despite what I suspect is your inference of partisanship on the part of the airline's leaders, it seems that Jamaica has given both Airbus and Boeing a backslap at different times. Could it be that they are actually interested in what's right for the airline?

Thornton


User currently offlineLumberton From United States of America, joined Jul 2005, 4708 posts, RR: 20
Reply 16, posted (7 years 12 months 3 days 21 hours ago) and read 7047 times:

Quoting Drerx7 (Reply 4):
Restart cities cancelled...Houston maybe? for a 3rd time...

IAH? I can only hope! JM has one of my favorite liveries. However, I am completely mystified as to why they would change out their fleet. What's the benefit? Can't they renegotiate the terms on their Airbus fleet?



"When all is said and done, more will be said than done".
User currently offlineCaptaink From Mexico, joined May 2001, 5109 posts, RR: 12
Reply 17, posted (7 years 12 months 3 days 16 hours ago) and read 6922 times:

According to what I was told, they are dropping the narrowbody airbus fleet, in favour of B757s for select routes out of Jamaica, and routes in the eastern caribbean.

They are also looking to acquire B737s, but 300/400 models. Yes I raised my eyebrows to that as well.

The A340 would be kept for the while, whilst a replacement aircraft is found, most likely the 767 and not the 777.

Waiver: I am just repeating what I was told, but the person is a very reliable source.



There is something special about planes....
User currently offlineMAH4546 From Sweden, joined Jan 2001, 33194 posts, RR: 71
Reply 18, posted (7 years 12 months 3 days 16 hours ago) and read 6900 times:

Quoting ILSApproach (Reply 8):
Still wish Air Jamaica would add MSP! It is still the largest originator of charter flights to warm climates in North America!! I meant 6Y A340.

Yeah, for some odd reason, people in Minneapolis take the very Canada/Europe approach towards packaged vacations and charter flights very favourably, wherareas in most of the US it isn't that popular.



a.
User currently offlineReggaebird From Jamaica, joined Nov 1999, 1176 posts, RR: 0
Reply 19, posted (7 years 12 months 3 days 13 hours ago) and read 6828 times:

Quoting Captaink (Reply 17):
According to what I was told, they are dropping the narrowbody airbus fleet, in favour of B757s for select routes out of Jamaica, and routes in the eastern caribbean.

They are also looking to acquire B737s, but 300/400 models. Yes I raised my eyebrows to that as well.

The A340 would be kept for the while, whilst a replacement aircraft is found, most likely the 767 and not the 777.

Waiver: I am just repeating what I was told, but the person is a very reliable source.

Is your source more reliable than the Minister of Finance of Jamaica and the CEO of Air Jamaica?


User currently offlineCHRISBA777ER From UK - England, joined Mar 2001, 5964 posts, RR: 62
Reply 20, posted (7 years 12 months 3 days 11 hours ago) and read 6780 times:

Quoting Reggaebird (Reply 15):
Quoting CHRISBA777ER (Reply 12):
An early build 777 that flies farther and carries more freight than an A340-313X?

European fleet?

Sounds like some good old US-backslapping to me.

How is this US-backslapping? Why is it any different than the old owner touting the Airbus fleet as "more modern and safe"? Despite what I suspect is your inference of partisanship on the part of the airline's leaders, it seems that Jamaica has given both Airbus and Boeing a backslap at different times. Could it be that they are actually interested in what's right for the airline?

Wind your neck in Thornton - I was merely inferring that stating that European jets dont carry as much freight, have as much range etc smacks of US Backslapping to get a better deal. How they run their airline is up to them, but I suspect the Boeing models they are talking about (ie: the 772ER) are out of reach financially.



What do you mean you dont have any bourbon? Do you know how far it is to Houston? What kind of airline is this???
User currently offlineCaptaink From Mexico, joined May 2001, 5109 posts, RR: 12
Reply 21, posted (7 years 12 months 3 days 5 hours ago) and read 6720 times:

Quoting Reggaebird (Reply 19):

Is your source more reliable than the Minister of Finance of Jamaica and the CEO of Air Jamaica?

His info didn't vary much from the newspaper article. The only difference was that he said they are not looking at the 777s anymore, the 737 would be older models (something I find very hard to believe) and that the 757s would be on Eastern Caribbean routes, ie, UVF, GND, BGI and select routes out of MBJ.

Thee first two points, I will wait to see, the the 757 point I understand and imagine it to be true, as the 757s leased for the summer was used on GND/JFK and MBJ/JFK.

Not comparing reliability of sources, just repeated what I was told.



There is something special about planes....
User currently offlineJetfixr757 From Jamaica, joined Jan 2006, 151 posts, RR: 0
Reply 22, posted (7 years 12 months 3 days 5 hours ago) and read 6701 times:

Well something had to give, for years i was told how Airbus was jamming AJ on parts and support. My years of Boeing experience i think they will be fine. Should have shifted fleets years ago. Greed and the short carrot can be a detriment.
Jet


User currently offlineCoa747 From , joined Dec 1969, posts, RR:
Reply 23, posted (7 years 12 months 3 days 3 hours ago) and read 6650 times:

Why would Air Jamaica order and aircraft that had insufficient cargo/baggage capacity for the routes it was to be used on. That is a great business strategy use an aircraft that is too small and then pay extra to have bags shipped to another location for transport. I guess we are beginning to understand why Air Jamaica is exerpiencing such financial difficulty with decision makers doing stupid things like that.

Reminds me of a story my uncle told me regarding Cathay. Cathay used to operate the A340 on the Sydney run. That flight went out full most of the time and given the A340's range and payload Cathay often could not carry pax luggage in order to make the trip without stopping. My uncle who was an 747-400F pilot got to be very familiar with the Sydney run as for a while they had a cargo flight timed to leave with the A340 pax flight. The reason being the pax bags had to be thrown on to the freighter so that the A340 could make Hong Kong. Very efficient use of resources don't you think. Requiring two aircraft to do the work of one. There are some people inside Cathay who dispute that Cathay has ever made any money with the Airbus A340-300's or 600's for that matter. But that is a topic for another discussion.


User currently offlineCaptaink From Mexico, joined May 2001, 5109 posts, RR: 12
Reply 24, posted (7 years 12 months 3 days 3 hours ago) and read 6612 times:

Quoting Coa747 (Reply 23):
Why would Air Jamaica order and aircraft that had insufficient cargo/baggage capacity for the routes it was to be used on. That is a great business strategy use an aircraft that is too small and then pay extra to have bags shipped to another location for transport. I guess we are beginning to understand why Air Jamaica is exerpiencing such financial difficulty with decision makers doing stupid things like that.

I hope JM learnt something from this airbus aircraft. Having worked with JM in GND, I can tell you this. Come summer and winter, those A320s came in heavy. At times they used A321 to carry more pasengers. The problem lied in the fact that caribbean nationals travel very heavy so with an A320 we had up to 100 bags shortshipped, worse at time with the 321. Sometimes flights after would be lighter so bags would be shipped few by few. Other times they had to be trucked to MIA and from there Amerijet or DHL would use a 727 to get them to the eastern caribbean. Very expensive.

But they do plan to use the 757 in the eastern caribbean so that should take care of that problem. As to what type of 737 they get, who knows. More than likely i suspect it would be NGs. But that would be used on routes out of MBJ known for tourists and not so much the VFR traffic.



There is something special about planes....
25 2travel2know : JM has the problem that they're an Airline for a 2 International Airport island - which in the event that would ever have a awesome road/railroad syst
26 Reggaebird : I don't see this as a problem at all. More business for JM.
27 Post contains images A388 : Precisely what I am thinking. Secondhand 733/734 aircraft and 763 for longhaul. If the 733/734 is indeed chosen it is a step backwards for JM but I d
28 ERJ170 : I've been thinking about the 733/734 arrangement and I am starting to think it is actually a brilliant move. They can get some medium capacity aircra
29 A388 : It could be a good move if JM can get the 733/734 in good condition and not crappy aircraft which I am afraid of. The 733 isn't the youngest aircraft
30 Boeingguy1 : I usually dont toot my own horn when it comes to stuff like this, but it needs to be said. I have a very personal high ranking Jamacian official in my
31 A388 : If true I can imagine your argument. Our national airline (LM/K8) also went bankrupt unfortunately because of the government not willing to invest mo
32 JAM747 : Did JA ever try to get some of the later A300 -600 models? I know they had some of the older 4B models at one point but I think that the later A300-60
33 Captaink : JM got rid of the newer A310s also better for the VFR market than the 320 in an effort to achieve more fleet commonality. Many times the A310s were u
34 Beeweel15 : The 757 also has problems even BW/Caribbean has that problem at peak times everyone brings with them everythin but the kitchen sink. Many times I hel
35 Captaink : BW leases 757s as well? I was not aware. I konw the 738s also has problems with baggage though I think it is a bit better than the A320. This past su
36 Thomasphoto60 : Aside from IAH, which other US cities were scrubbed in '04'? Thomas
37 Captaink : When was PHX stopped?
38 MD90fan : I think they dropped BOS too. A while back IIRC there was a rumor about them wanting to start SFO!
39 Captaink : THey were planning on starting SFO and YVR, and ideas were on the table of acquiring A319s. Didn't happen.
40 Jm017 : I couldn't agree more. At times it seems they try to serve two masters. At times they seem to neglect the VFR/Business travelers. It may be a good id
41 MIAMIx707 : When is that Eirjet/Air Jamaica hybrid A320 going to be put in service? Actually I'd like to see 757s in JM colors. However I still miss their A310s a
42 Reggaebird : I think it would be a huge mistake for JM to get old 737s. The native population are very wary about that move and have taken their concerns to the g
43 2travel2know : Here is a case where the interests of the Jamaican North Coast Tourist Industry clashes with the needs of most Jamaican passengers. I totally agree,
44 ERJ170 : Well, I see two options.. black and white.. they could go for some Airbus and get further into debt to make the home team happy while still flying in
45 JAM747 : What is the likely age difference between JA current A320s and the possible 737 -300 or -400 ? Even though some locals will be concerned about the ag
46 JM017 : And the expressed desire of the airline to be profitable .
47 Captaink : If the aircrafts are in good condition, I don't the average flyer will know the difference, or care. Added to the that, quite a of the A320s I have b
48 ERAUgrad02 : Maybe when/if they do all of this, they will install winglets to to 737 classics to enhance the performance envelope. but ill continue reading this th
49 Trintocan : Well, it seems as though the entire Caribbean is seeing the blues insofar as their airlines are concerned. JM certainly did well in the 90s to emerge
50 Coa747 : When I worked at Continental at IAH we had similar issues. Outbound flights to the Caribbean and Central and South America were loaded with all kinds
51 Reggaebird : Does anyone have a picture of the Air Jamaica 757 that is already in service?
52 A388 : I think the 757 JM leases now is just a leased aircraft (from Ryan International?) with most likely only a small sticker indicating it is operating f
53 ERAUgrad02 : Would the 767s be new builds? because u cant find used ones anywhere. It would keep the 76 line going if they did get some new orders.
54 Captaink : Where any of these aircraft is coming from is not yet known. THese are just the plans on paper thus far. I think there will be some difficulty in obt
55 Post contains images MD90fan : Nope, especially now that CSA will be retiring some737Classics. Those were the very last ones of the line
56 A388 : Correct but I don't think CSA will dispose of their last built 737s yet but rather their earlier built 737s. A388
57 MAH4546 : They have seven daily flights to MIA/FLL. Neither MIA nor FLL has even had more than four at a time.
58 Captaink : Still more than BWs two, 484/432.
59 JMBWEEBOY : Air Jamaica canning JFK/UVF/GND! Apparently Air Jamaica will be terminating all nonstop service effective Jan 9th from JFK to both St Lucia and Grenad
60 2travel2know : Maybe having a hub operation could benefit JM in the long run, my only comment to this is that eventually JM will have to decide what kind of an airl
61 Post contains images Stirling : Letting a mob mentality spread falsehoods where truth is ignored is even more disastrous. Is the implication Boeing 737s are unsafe? Where in the wor
62 A388 : MBJ looks like a very airport for aircraft photography as I've seen in another thead here in the past. Are there any more photos taken at MBJ? I am ve
63 Post contains images Jm017 : And this is NOT a good thing.... They seemed to have decided that the hub should be MBJ. MBJ has been a hub for 11 years or so. Understandable given
64 Captaink : They wont loose at GND, as passengers there don't have have a more direct alternative. The passengers won't be pleased with the new stop in BGI as opp
65 Jm017 : This I am also confused about. Why give up GND? It was doing well wasn't it? Okay they do need more cargo capacity than the A320, but a strong route
66 MIAMIx707 : Nobody knows when the A320 from Eirjet will start flying? I thought I read on here it would be before Christmas?
67 Captaink : GND does well, there is no doubt about it and JM knows it. After the fleet fiasco, GND was the first station in the eastern caribbean to be reopened.
68 ERAUgrad02 : When are we supposed to know if this is all really going to occur? I wonder if the 737-300/-400's are going to come from the returns that usair sent b
69 Jm017 : Well, for my part I'll try to have faith.
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