Caribbean Aviation Thread - 2019

303dk · Sat Mar 02, 2019 4:59 am

danipawa wrote:
Liat has only 10 days' cash to keep functioning

http://www.cnc3.co.tt/press-release/lia ... vYOA_APtto

Let it fail. We’re all connecting through MIA at this point anyway. Even the routes they fly are too expensive or too inconvenient

trintocan · Mon Mar 04, 2019 11:54 am

Liat are in the news again and not in a good way. They have suffered from financial problems for most of their existence but right now it appears there is a deeper problem at hand. The issue now is how do they adapt to a rapidly changing aviation environment in the Caribbean.

Liat historically was an acronym for Leeward Islands Air Transport although since 1974 the term "Liat" has been a name and not an acronym. The reality now is that while LI remain HQ'd in ANU they do relatively little flying in the Leewards these days. There is instead a range of airlines such as Winair, Inter Caribbean Airways, Seaborne Airlines and others who operate smaller planes. These airlines are thus better equipped to interlink the Leewards, virtually all of which have flights with each other. Most LI activity these days occurs further South with the busiest area being among POS, OGL, BGI, SVD, SLU and GND along with the notable ANU - DOM - BGI route. POS has become a major focus city for LI due to its larger market, business links and the growing regional tourism market of which POS is the largest source. All the same, any consideration of POS as a base includes LI coming into direct competition with Caribbean Airlines. BW are not only larger but have devotees through Caribbean Miles and Club Caribbean. These, along with the general perception of BW being a better quality airline than LI means that many choose to fly BW where they can despite their lower regional flight frequency (a result of their TAB commitments).

LI have done sterling service for many years interlinking the islands of the Caribbean. In this role they have played a pivotal role in connecting passengers to and from international flights at BGI and ANU. This role is, however, of little pertinence nowadays. Most of the islands now have large international airports and have attracted direct services to North America and Europe, thus obviating the need for regional connections. With SVD opening Argyle lnt'l in 2017 it means that DOM is the last market LI serve in this role. The issue now is whether the direct inter-island traffic is sufficient to maintain the airline's route structure.

With that in mind, though, one needs to ask what can the airline cut back on? LI have cut several islands and routes in the last few years, citing unprofitability. The Prime Minister of Trinidad & Tobago mentioned that he was unaware of any of their routes to POS being unprofitable - though of course he is unlikely to have that sort of information given the nation's minor shareholding in LI. The main shareholders are Antigua & Barbuda, Barbados, Dominica and St Vincent & The Grenadines. Could LI lobby other islands to support their services? This may well prove to be the definitive question.

Trintocan.

trintocan · Mon Mar 04, 2019 12:22 pm

I have just read on another thread that the Barbados Concorde Experience has been closed down. Does anyone have more information about this? This is a massive shame as it was a very well put-together showcase for this beautiful aircraft. I visited it back in 2007 and thoroughly enjoyed it. I hope that some arrangement can be reached to reopen the facility. BA for certain will be very concerned about this and would ensure that their icon is cared for notwithstanding. Is the museum a victim of Barbados' recent financial woes?

Trintocan.

baje427 · Mon Mar 04, 2019 1:23 pm

The museum was also used to host other events to generate revenue I have no idea if it will reopen. Given the financial straits of Barbados other things are a priority right now the tourism minister also claimed Barbados was not an ATM for Liat. However, Barbados needs Liat so I don't see the government letting it fail

gunnerman · Mon Mar 04, 2019 3:00 pm

Julie Reifer-Jones has presided over a company which is in crisis, needing an immediate injection of US$5 to survive. Even if this funding is found, and nobody is willing as all the eastern Caribbean countries have ailing economies, there is also the matter of the loans totalling US$65 from Caribbean Development Bank which need to be repaid. Also it's worrying that Reifer-Jones has failed to produce a strategy for turning around LIAT even though this crisis was obvious several months ago.

danipawa · Thu Mar 21, 2019 5:04 pm

First F70 for Curacao Starup JetAir Caribbean arrived at CUR yesterday:

gunnerman · Thu Mar 21, 2019 5:18 pm

It seems as if JetAir is operating with the licence of CUR-based United Caribbean Airlines under they get their own AOC.

Balloonchaser · Sun Mar 24, 2019 2:48 pm

Has anyone heard anything about SXM? Nothing new in a while.. With hotels open the economy starting to boom, and the airport making strides of progress, I would expect airlines to jump on it and introduce new service to the island.

Carriers like TUI, XL Airways, Sun Country and Thomas Cook Airlines Scandinavia have yet to return after the hurricane and Selta has not returned with the MSP-SXM route.

On the other hand; Sunwing Group has built a group resort on the island and its almost complete.. Would you think that Sunwing and Vacation Express would monopolize on SXM? What routes could we see? Sort of like what Cancún has?

SELMER40 · Sun Mar 24, 2019 9:13 pm

Balloonchaser wrote:
Has anyone heard anything about SXM? Nothing new in a while..

Their winter season is ending. It might extend into April because of late Easter. For the summer season a few flights may be dropped. The SXM airport newsletter for March is not yet out (a little later than previous newsletters). 12 for 2018 and 2 for 2019 are available at https://www.sxmairport.com/newsletter.php

baje427 · Sun Mar 24, 2019 9:57 pm

danipawa wrote:
First F70 for Curacao Starup JetAir Caribbean arrived at CUR yesterday:

I know the acquisition costs on the Fokker70/100 must be cheap but what about maintenance? I have to imagine an ATR could do 90% of the routes they will operate.

303dk · Mon Mar 25, 2019 3:49 am

Balloonchaser wrote:
Has anyone heard anything about SXM? Nothing new in a while.. With hotels open the economy starting to boom, and the airport making strides of progress, I would expect airlines to jump on it and introduce new service to the island.

Walk down Front Street on a day when no ships are in port and you’ll really see how many hotels are not open yet. There’s a long way to go

windian425 · Tue Mar 26, 2019 4:19 pm

Looks like Caribbean Airlines (CAL) is restarting BGI-KIN-BGI Nonstop's on Mondays and Fridays effective 15th April, 2019. These are in addition to the daily flights that operate via POS. This was long overdue although I was hoping for InterCaribbean to utilize their E145's on a route such as this to compete with CAL.

gunnerman · Tue Mar 26, 2019 5:15 pm

The flights are actually KIN-BGI-KIN. I suspect that BW has an underutilised 738 and crew.

Speedbird2155 · Tue Mar 26, 2019 5:37 pm

Balloonchaser wrote:
Has anyone heard anything about SXM? Nothing new in a while..

Experience in February wasn't great. Walk to immigration from plane but held outside due to numbers. Buses bringing passengers from other flights and then dropping them directly at the door so that they then pushed in ahead of those waiting outside. One agent finally decided to as one bus driver to put others at the back, but did nothing to tell ensure it was passed to all other drivers so problem continued. They then decided to call for anyone connecting to other flights or boats, but sent some people the wrong way. They just didn't seem to have a plan to deal with arrivals.

Departure was slightly better experience but space very limited.

A388 · Tue Mar 26, 2019 6:05 pm

baje427 wrote:
danipawa wrote:
First F70 for Curacao Starup JetAir Caribbean arrived at CUR yesterday:

I know the acquisition costs on the Fokker70/100 must be cheap but what about maintenance? I have to imagine an ATR could do 90% of the routes they will operate.

Perception is important in Curacao (whether justified or not, unfortunately). People here will prefer a jet service over turboprop service. As you already said, the ATR can't do all the routes that the F70 can so the F70 wins here as well. The fact that some F70 experienced people are most likely still on the island and ready to start right away (former Insel Air employees), probably also was a factor to go for the F70 instead of any other aircraft type (cheaper solution for the coming years as a startup airline). Maintenance costs might be more expensive but probably worth it for the time being.

A388

trini81 · Tue Mar 26, 2019 7:01 pm

gunnerman wrote:
The flights are actually KIN-BGI-KIN. I suspect that BW has an underutilised 738 and crew.

It seems CAL is looking to create a larger hub in KIN.....

http://www.jamaicaobserver.com/sunday-f ... ofile=1056

To be noted from the article:
1) CAL introduces a new fleet of turbo-prob aeroplanes, which will be “based in Jamaica as a regional hub”
2) The new plan Kingston could serve as the hub for Northern Caribbean destinations possibly including places like Cuba, Haiti, the Dominican Republic, the Cayman Islands and The Bahamas
3) The airline would soon be introducing two new Caribbean destinations
4) The airline currently has a fleet of ATR 72-600s turbo-prop planes flying out of Trinidad, and will consider expanding that for the Jamaican hub, or possibly going for the Q-400s, which give a longer range

caribny · Tue Mar 26, 2019 9:04 pm

gunnerman wrote:
The flights are actually KIN-BGI-KIN. I suspect that BW has an underutilised 738 and crew.

Yes. The plane that used to do the KIN MCO.

caribny · Tue Mar 26, 2019 9:34 pm

Who is going to pay for BWs KIN hub? Jamaica?

LimaFoxTango · Thu Mar 28, 2019 1:26 pm

A little news about LI, and to make a very long story very short, the unions representing various staff have been given a deadline of end of business today March 28 to respond to LI's proposal of almost 10% salary cut, or face closure of the airline.

We wait.

gunnerman · Thu Mar 28, 2019 1:43 pm

Haven't the four shareholder governments pledged to bail out LIAT?

Brickell305 · Thu Mar 28, 2019 2:21 pm

gunnerman wrote:
Haven't the four shareholder governments pledged to bail out LIAT?

I believe that is contingent on the aforementioned 10% salary cut. AFAIK, the unions are saying the 10% cut should be contingent on LIAT getting a whole new management team as they view the salary cut as an investment in the airline and as they have no confidence in this management team, they do not wish to invest unless fresh blood is brought in. There are several dominoes which still need to fall into place.

LimaFoxTango wrote:
A little news about LI, and to make a very long story very short, the unions representing various staff have been given a deadline of end of business today March 28 to respond to LI's proposal of almost 10% salary cut, or face closure of the airline.

We wait.

I think it's very sad that it's come to this. They are essentially holding the staff for ransom.

caribny · Thu Mar 28, 2019 3:55 pm

Brickell305 wrote:

I think it's very sad that it's come to this. They are essentially holding the staff for ransom.

This is a bluff. The owners of LIAT aren't going to shut it down and leave no service. If they restart an airline there will be severance payments for the old employees as many will have to be rehired into the new entity. And the new entity will have to be recapitalized.

LIAT has to identify which routes aren't profitable and either cut them or demand MRGs from the destinations benefitting. They think that they are a utility entitled to ongoing subsidies, but gov'ts cannot afford this. LI lacks credibility in its management efficiency and they will have to deal with this issue if they want more $$. Is management talking a 10% pay cut as well?

gunnerman · Thu Mar 28, 2019 6:26 pm

LIAT has cancelled the following flights today (Thursday 28 March) for "operational reasons".
• LI 374 from Barbados to St. Lucia
• LI 375 from St. Lucia to Barbados
• LI 337 from Barbados to Grenada
• LI 338 from Grenada to Barbados
• LI 769 from Barbados to St. Vincent
• LI 770 from St. Vincent to Barbados.

Brickell305 · Thu Mar 28, 2019 7:05 pm

caribny wrote:
Brickell305 wrote:

I think it's very sad that it's come to this. They are essentially holding the staff for ransom.

This is a bluff. The owners of LIAT aren't going to shut it down and leave no service. If they restart an airline there will be severance payments for the old employees as many will have to be rehired into the new entity. And the new entity will have to be recapitalized.

LIAT has to identify which routes aren't profitable and either cut them or demand MRGs from the destinations benefitting. They think that they are a utility entitled to ongoing subsidies, but gov'ts cannot afford this. LI lacks credibility in its management efficiency and they will have to deal with this issue if they want more $$. Is management talking a 10% pay cut as well?

From memory, I do believe a 10% pay cut was proposed for management as well.

Re their non-performing routes, it seems that they are targeting flights to Saint Lucia and Trinidad from this article. Both would seem to be losing propositions as the PM of Saint Lucia has always been hostile towards LIAT and Trinidad will likely tell LIAT that it is not needed as they have BW.

https://searchlight.vc/searchlight/pres ... avourable/

Response from governments and workers to LIAT’s proposals not favourable
2019/03/27

The governments which were asked to make Minimum Revenue Guarantees (MRGs) or emergency cash input to LIAT have not responded favourably, except for Grenada.

The regional airline has also hit another hurdle as workers have not agreed to pay cuts suggested in an attempt to restructure the struggling airline.

March 15 was the deadline given to 11 regional territories to respond to a request from LIAT for MRGs and earlier this month, the regional airline also asked eight countries to contribute to a total of US$5.4 million to an emergency fund, with the aim of keeping its planes in the sky.

But speaking on Friday, Prime Minister Dr Ralph Gonsalves, who is the chairman of the shareholder governments of LIAT said that the response to the requests has not been favourable.

Gonsalves said that other than the shareholder governments, only Grenada has said they will come aboard to provide emergency funding and no other country. He said that while everybody is saying they agree theoretically, there is no movement.

It was also announced this week that management and unions representing the airline’s workers have served notice that a salary cut is not an option although the unions seemed willing to accept pay cuts during an initial meeting.

“I don’t think the workers fully appreciate what is going to happen,” Gonsalves stated.

He said that the Caribbean Development Bank (CDB) is involved and there are three options: for the private sector to take over LIAT, close down LIAT and start a new business or restructure.

“…[Restructure] is a pie in the sky. Private sector, they may come with the government involved but for them to take it over, they have been that road before and they back away like soldier crab.

“With the restructuring, everybody had to bear some burden including the workers and not an undue burden, but if they think you can continue as usual…”, Gonsalves said in an interview on We FM last week.

Giving some numbers, Gonsalves noted that at the moment, LIAT has 10 planes; SVG has 52 flights per week, Barbados 116 flights and Antigua 69 flights. St Lucia has flights with an average load factor of 46 per cent while Trinidad has a 38 per cent load factor.

He said that these load factors mean that without MRGs, the St Lucia and Trinidad routes might be dropped because if the shareholder governments have to pay for those routes it might be better to engage other aircraft to fly them.

It was added also that with fewer routes, three of the 10 planes that LIAT owns can be sold and that will reduce the debt on shareholder governments like Barbados and Antigua.

“People don’t understand the modern period of regional aviation. I am not fed up with LIAT. I am sticking there with LIAT, but it has to be a substantially restructured LIAT and we have restructured in the past and there is no problem in principal if you have to do a small subsidy in LIAT, but clearly, we alone can’t be bearing the burden,” said Gonsalves.

The major shareholders of LIAT are Barbados, SVG, Antigua and Barbuda and Dominica and there are plans to encourage St Kitts Nevis, Grenada, St Lucia and Guyana to become shareholders.

The Prime Minister said the LIAT issue is taking up a lot of his time, but he has to press on.

“Some of the people cursing LIAT have no solution,” he said.

On Tuesday, president of the Leeward Islands Airline Pilots Association (LIAPA), Carl Burke told the media that his members are very reluctant to accept a salary cut while Prime Minister of St Lucia Allen Chastanet said he has not entirely dismissed the MRGs suggestion for non-profitable routes, but much more detail about that suggestion has to be provided before he makes a final decision.

baje427 · Thu Mar 28, 2019 7:57 pm

While I don't think LIAT will close the BGI government is no longer in the position to prop it up. There will be some fundamental changes coming I believe.

caribny · Thu Mar 28, 2019 8:31 pm

I was of the impression that POS was one of LI's bigger markets, and that SLU was also a profitable one. This is my point about LIAT. Their decisions are made purely on intimidating countries to pay up. Not on whether routes make sense or not. Regardless as to whether the FDF. PTP, or SJU routes are profitable or not they will not make these threats as they know that there will be no MRG from those entities. And they probably will not to EIS or SXM either.

Does LI have the attitude that they will do best with 3 planes flying between SVD, BGI, DOM and ANU because this seems to be where they are headed? GND has asked for detailed info on route profitability into that island and their MRG will be contingent on that.

LI needs to furnish the same data that the major carriers do if a route needs revenue support. Closing down SLU and POS just facilitates further incursions by BW and maybe 3S into LI territory. At some point LI will lose economies of scale if they continue to retrench.

In addition even routes that they maintain will be compromised by reduced feed from markets that they exit. SLU BGI isn't just people traveling between these two islands but also people intransit thru the BGI hub to other points. There is a good amount of travel between SLU and GEO as an example, as well as some to GND/SKB. All lost if SLU is scratched. Does LI even track the ultimate destination of their passengers, or just point to point travel?

gunnerman · Thu Mar 28, 2019 9:16 pm

Allen Chastanet has long declined to put money into what he considers to be an inefficient company until it sorts out its cost structure. He's still saying that following the request to St Lucia to contribute US$600,000.

danipawa · Thu Mar 28, 2019 9:34 pm

Sky High Aviation launching St Thomas from Santo Domingo starting April 12 and San Juan starting April 11

303dk · Thu Mar 28, 2019 10:16 pm

danipawa wrote:
Sky High Aviation launching St Thomas from Santo Domingo starting April 12 and San Juan starting April 11

STT to the DR is a (relatively) huge VFR market, but it’s hard to compete B6 via SJU. They have the capacity to undercut a small carrier

caribny · Fri Mar 29, 2019 1:38 am

303dk wrote:
danipawa wrote:
Sky High Aviation launching St Thomas from Santo Domingo starting April 12 and San Juan starting April 11

STT to the DR is a (relatively) huge VFR market, but it’s hard to compete B6 via SJU. They have the capacity to undercut a small carrier

Nonstop plus some people are patriotic. I also doubt that B6 has the time to engage a price war with them. Too small to bother with.

Brickell305 · Fri Mar 29, 2019 7:08 pm

Fly Jamaica aims to restart operations
March 29, 2019

Months after a Fly Jamaica plane crash landed at Guyana’s leading international airport, the airline has finally begun refunding affected customers.

The company is also preparing to restart operations shortly.

In a press statement, the airline said “all requests for refunds are being honoured, however, it is a process that has to be checked by our reservations and accounts staff.”

Fly Jamaica said some passengers would “obviously like to see the process move faster, but we have to be constrained by our cash and credit card business safeguards”.

Since the plane crash in November 2018, the airline stopped its operations.

But the company says it hopes to restart flight operations in a “couple of months”.

In November 2018, a Fly Jamaica aircraft, destined for Toronto, Canada, crash-landed at the Cheddi Jagan International Airport (CJIA) at Timehri, East Bank Demerara.

Passengers who were on-board that flight were victims of theft, after their belongings were allegedly stolen by local law enforcement officers who responded to the accident.

Apart from them passengers who had already booked their flights with the airline were forced to book new flights with different airlines, since Fly Jamaica had to cancel numerous flights.

https://www.inewsguyana.com/fly-jamaica ... perations/

Brickell305 · Fri Mar 29, 2019 7:11 pm

More cancellations at LIAT.

https://www.liat.com/navSource.html?page_id=1043

TRAVEL ADVISORY

SCHEDULE CHANGES FRIDAY 29TH MARCH,2019

LIAT wishes to advise that due to unscheduled maintenance on two of its aircraft, several flights have been cancelled and/or retimed for Friday 29th March 2019. These changes will affect the following flights:

· LI 374 from Barbados to St. Lucia

· LI 375 from St. Lucia to Barbados

· LI 337 from Barbados to Grenada

· LI 338 from Grenada to Barbados

· LI 335 from Barbados to Trinidad

· LI 336 from Trinidad to Barbados

· LI 769 from Barbados to St. Vincent

· LI 770 from St. Vincent to Barbados.

LI 364 has been retimed for a later departure.

LI 364 from Barbados to Dominica will now depart at 3:00 p.m.

LI364 from Dominica to Antigua will depart at 4:25 p.m.

Affected passengers will be moved to other flights at no charge. Please contact our Reservations Call Centre or your travel agent for more information.

caribny · Sat Mar 30, 2019 6:20 am

FJM just made their staff redundant so I dont think that they will be back too soon. They owe refunds to passengers plus 5 months pay for staff.

Brickell305 · Sat Mar 30, 2019 1:24 pm

LIAT pilots have agreed to salary cuts. Though not the 10% that was initially put forward.

http://www.nationnews.com/nationnews/ne ... alary-cuts

beeweel15 · Sat Mar 30, 2019 3:28 pm

Got this from a friend.

Brickell305 · Mon Apr 01, 2019 3:58 pm

beeweel15 wrote:
Got this from a friend.

Just added confirmation that this is in fact real.

http://jamaica-gleaner.com/article/lead ... -all-staff

Fly Jamaica lays off all staff
Saturday | March 30, 2019

Employees of Fly Jamaica Airways have been made redundant, effective March 31, 2019.

In a letter to members of staff yesterday, the airline’s chairman and CEO Paul Ronald Reece said that the company “regrets to inform you (staff) that due to our lack of aircraft and the impact that it had on the company’s financial position, we have no alternative but to make all our employees redundant ... ”.

On November 9, 2018, Fly Jamaica’s Boeing 757-200 aircraft overshot the runway at Guyana’s main international airport, injuring several people.

It was reported that the plane, which was on its way to Toronto, reported a hydraulic failure emergency shortly after taking off from the Cheddi Jagan International Airport and returned after less than 20 minutes.

Reece, in his letter to staff, said: “It is with regret, sadness, and remorse that we have arrived at this juncture. We were hoping for funding, but that has been slow in coming, therefore, for the time being, no other resources or options exist.”

Fly Jamaica’s CEO said that the company, which has been in operation for six years, was committed to paying workers sums owed from November 2018. However, it is asking for more time to settle its obligations.

“If the company’s circumstances change in the future and you are still interested in employment with the company, you will be invited to apply for a position within the company,” Reece said.

BW600 · Mon Apr 01, 2019 5:17 pm

BW has updated its website. Looks very modern.
Perhaps BW’s new KIN-BGI-KIN flights are the first additions in the attempt to re focus on KIN

Brickell305 · Mon Apr 01, 2019 5:34 pm

BW600 wrote:
BW has updated its website. Looks very modern.
Perhaps BW’s new KIN-BGI-KIN flights are the first additions in the attempt to re focus on KIN

With all the cuts out of KIN recently, they are probably just looking to improve aircraft utilization. A BGI nonstop twice a week probably makes more sense than any other option.

caribny · Tue Apr 02, 2019 5:10 am

Brickell305 wrote:
BW600 wrote:
BW has updated its website. Looks very modern.
Perhaps BW’s new KIN-BGI-KIN flights are the first additions in the attempt to re focus on KIN

With all the cuts out of KIN recently, they are probably just looking to improve aircraft utilization. A BGI nonstop twice a week probably makes more sense than any other option.

This replaces the MCO KIN run. Now that NK is on it year round BW is permanently out of it. Their 738s in Jamaica have low utilization.

Plus I bet that people travelling between BGI and KIN probably complain about the long flight, sometimes with a change of plane or a delay.

trintocan · Thu Apr 04, 2019 6:55 pm

caribny wrote:
I was of the impression that POS was one of LI's bigger markets, and that SLU was also a profitable one. This is my point about LIAT. Their decisions are made purely on intimidating countries to pay up. Not on whether routes make sense or not. Regardless as to whether the FDF. PTP, or SJU routes are profitable or not they will not make these threats as they know that there will be no MRG from those entities. And they probably will not to EIS or SXM either.

Does LI have the attitude that they will do best with 3 planes flying between SVD, BGI, DOM and ANU because this seems to be where they are headed? GND has asked for detailed info on route profitability into that island and their MRG will be contingent on that.

LI needs to furnish the same data that the major carriers do if a route needs revenue support. Closing down SLU and POS just facilitates further incursions by BW and maybe 3S into LI territory. At some point LI will lose economies of scale if they continue to retrench.

In addition even routes that they maintain will be compromised by reduced feed from markets that they exit. SLU BGI isn't just people traveling between these two islands but also people intransit thru the BGI hub to other points. There is a good amount of travel between SLU and GEO as an example, as well as some to GND/SKB. All lost if SLU is scratched. Does LI even track the ultimate destination of their passengers, or just point to point travel?

To put a point across, LI will never drop POS. They may adjust some routes but POS is too important for them to drop out of. This is because POS is one of the few markets that offers genuine growth potential as well as being the largest business market and source of regional tourism in the Eastern Caribbean. POS, notwithstanding utterances to the contrary, does need LI as well and again this relates to the business links with the other islands. All of the other islands import large quantities of T&T goods and the business and social links facilitating this trade often flows via LI. BW of course offer the loyalty programmes and all which keep some flyers attached to them but their lower flight frequency can be an issue in some situations. So, while the politicians would state that POS does not need LI one would find that on the ground the reverse is true. BW in any event could not replace LI's capacity in POS without significant expansion as their TAB route takes a lot of their resources. LI though need POS more.

The issue with POS is that LI hope to get financial support which they see BW getting. BW however have rather different issues and POS has spent millions on them during the 12 years of their existence. This is why POS will not put money into LI. They have offered LI the chance to work more closely with BW for maintenance, for example but this would be at the cost of jobs in ANU and is not politically satisfactory.

As for SLU, the link with BGI is a major trunk route on which LI have no competition. One would imagine that this route is profitable and that LI, despite demanding money to fly the route, actually sees this link as indispensable. SLU is also linked with ANU, SVD and POS - while the first two are LI monopolies the POS route is a 3-way fight among BW and LI as well as BA out of UVF. As mentioned the provision of financial guarantees to airlines has been a politically thorny issue in SLU in recent years and so it appears unlikely that SLU will invest in LI.

Trintocan.

trintocan · Thu Apr 04, 2019 7:16 pm

Brickell305 wrote:
beeweel15 wrote:
Got this from a friend.

Just added confirmation that this is in fact real.

http://jamaica-gleaner.com/article/lead ... -all-staff

Fly Jamaica lays off all staff
Saturday | March 30, 2019

Employees of Fly Jamaica Airways have been made redundant, effective March 31, 2019.

In a letter to members of staff yesterday, the airline’s chairman and CEO Paul Ronald Reece said that the company “regrets to inform you (staff) that due to our lack of aircraft and the impact that it had on the company’s financial position, we have no alternative but to make all our employees redundant ... ”.

On November 9, 2018, Fly Jamaica’s Boeing 757-200 aircraft overshot the runway at Guyana’s main international airport, injuring several people.

It was reported that the plane, which was on its way to Toronto, reported a hydraulic failure emergency shortly after taking off from the Cheddi Jagan International Airport and returned after less than 20 minutes.

Reece, in his letter to staff, said: “It is with regret, sadness, and remorse that we have arrived at this juncture. We were hoping for funding, but that has been slow in coming, therefore, for the time being, no other resources or options exist.”

Fly Jamaica’s CEO said that the company, which has been in operation for six years, was committed to paying workers sums owed from November 2018. However, it is asking for more time to settle its obligations.

“If the company’s circumstances change in the future and you are still interested in employment with the company, you will be invited to apply for a position within the company,” Reece said.

This is a very unfortunate development. Fly Jamaica have gone under. I wish the best for their staff as they seek new jobs and get their relevant severance payments. Fly Jamaica as an entity was, however, somewhat fatally flawed from the outset. Many of us will recall the debates on this forum about the airline's raison d'etre as a reactionary response to the perceived need to keep " a piece of Jamaica which flies" after Air Jamaica was sold to Caribbean Airlines. The hard truth is that emotions of that nature do not translate into automatic success in the tangled world of aviation. When one adds in the aftermath of their tragic crash then the outcome became more likely. In the world right now many airlines are struggling or going under and Fly Jamaica will nonetheless be remembered as one which tried to take on the majors.
Trintocan.

caribny · Thu Apr 04, 2019 9:22 pm

What might help LI with POS is a BW/LI code share allowing BW to operate GND POS and for LI to operate the SVD POS routes. This reduces duplication and probably improves load factors. As of now LI has at least 1 plane more than it needs because it drastically scaled back its northern tier routes.

I also wish that Mia Motley took over as the head shareholder. She has a stronger business head than Ralph and more at stake as BGI is the largest shareholder and really can no longer be LI's main ATM. She has a motive to drive LI into some break even situation based on revised operations instead of bullying gov'ts to pump $$ into LI every time they have a problem (which seems to be every year).

Of course high travel taxes remains LI's big challenge as it has resulted in a drastic reduction of intra regional travel. Long gone is the impulse travel to a neighboring island. Even at peak times like Xmas LI isn't necessarily full, which is a far cry from the days when they were over booked during such periods.

INFINITI329 · Thu Apr 04, 2019 11:33 pm

caribny wrote:
What might help LI with POS is a BW/LI code share allowing BW to operate GND POS and for LI to operate the SVD POS routes. This reduces duplication and probably improves load factors. As of now LI has at least 1 plane more than it needs because it drastically scaled back its northern tier routes.

I also wish that Mia Motley took over as the head shareholder. She has a stronger business head than Ralph and more at stake as BGI is the largest shareholder and really can no longer be LI's main ATM. She has a motive to drive LI into some break even situation based on revised operations instead of bullying gov'ts to pump $$ into LI every time they have a problem (which seems to be every year).

Of course high travel taxes remains LI's big challenge as it has resulted in a drastic reduction of intra regional travel. Long gone is the impulse travel to a neighboring island. Even at peak times like Xmas LI isn't necessarily full, which is a far cry from the days when they were over booked during such periods.

The airlines of the Caribbean must work together. If there was enough pie to go around Liat and others wouldn't be in the situation they are in.

Brickell305 · Fri Apr 05, 2019 6:16 pm

caribny wrote:
What might help LI with POS is a BW/LI code share allowing BW to operate GND POS and for LI to operate the SVD POS routes. This reduces duplication and probably improves load factors. As of now LI has at least 1 plane more than it needs because it drastically scaled back its northern tier routes.

I also wish that Mia Motley took over as the head shareholder. She has a stronger business head than Ralph and more at stake as BGI is the largest shareholder and really can no longer be LI's main ATM. She has a motive to drive LI into some break even situation based on revised operations instead of bullying gov'ts to pump $$ into LI every time they have a problem (which seems to be every year).

Of course high travel taxes remains LI's big challenge as it has resulted in a drastic reduction of intra regional travel. Long gone is the impulse travel to a neighboring island. Even at peak times like Xmas LI isn't necessarily full, which is a far cry from the days when they were over booked during such periods.

The problem with letting each airline serve a POS route exclusively is that it would occasion a fundamental change in the way each airline operates their route structure. For example, BW letting LI have POS-SVD exclusively would mean that in order to operate JFK-SVD as they've been doing, they'd either have to fly no revenue pax between POS and SVD or cycle the plane/crew POS-JFK-SVD-JFK-POS (which would also eliminate their ability to "top off" the flight with POS bound pax out of JFK when necessary). Either proposition would cost BW and make JFK-SVD more difficult to service.

In the case of LIAT, many of their routes are milk runs so for example an ANU-DOM-BGI-GND-POS routing would not only have GND originating pax bound to POS on the GND-POS leg but also ANU, DOM and BGI originating pax. Letting BW take over GND-POS entirely would either mean simply not flying any revenue pax between GND and POS which would make the flight costlier to run, having the flight terminate in GND and having POS bound pax transfer to a BW flight from there which I suspect would be a non-starter for many (although we may eventually end up in a scenario where they have no choice) or having an alternative routing where the last destination before POS is different (e.g. SVD, SLU or BGI) but that might make increase the cost of serving GND as a standalone destination.

I think it's time for hard decisions to be made. If loads into POS are really as low as 38% (which I find very hard to believe), then clearly LI cannot compete with BW and provides very little value to POS if they're not bringing in many pax. The largest E. Caribbean markets out of POS are already served by BW (albeit with some at sub-optimal frequencies). The only unique value that LI adds out of POS are smaller, niche markets that BW doesn't serve such as EIS, FDF, PTP, STT, SJU, etc. These could all be serviced via codeshare where BW flies the pax to BGI or ANU and LI takes them from there. LI has indicated that it is selling planes as they no longer have need for their entire fleet. Why not sell to BW and have them service all the E. Caribbean routes they determine to be worth it out of POS. The E. Caribbean would maintain its connection to POS via BW. Destinations that would remain unserved by BW could be connected to POS with transfers in ANU/BGI. It would simplify LI's network and let the airline with larger pockets assume a greater role in regional connectivity.

gunnerman · Fri Apr 05, 2019 9:02 pm

If there were to be true cooperation you'd have to consider radical options such as BW being all-jet to serve the longer routes and LI taking over domestic routes including POS-TAB with aircraft based at POS. (Yes I know that POS-TAB is cabotage but the T&T government could allow it and pay LI to run what is a social service.) This would simplify BW's operation and enable LI to make better use of its bigger fleet.

trintocan · Fri Apr 05, 2019 9:58 pm

Brickell305 wrote:
caribny wrote:
What might help LI with POS is a BW/LI code share allowing BW to operate GND POS and for LI to operate the SVD POS routes. This reduces duplication and probably improves load factors. As of now LI has at least 1 plane more than it needs because it drastically scaled back its northern tier routes.

I also wish that Mia Motley took over as the head shareholder. She has a stronger business head than Ralph and more at stake as BGI is the largest shareholder and really can no longer be LI's main ATM. She has a motive to drive LI into some break even situation based on revised operations instead of bullying gov'ts to pump $$ into LI every time they have a problem (which seems to be every year).

Of course high travel taxes remains LI's big challenge as it has resulted in a drastic reduction of intra regional travel. Long gone is the impulse travel to a neighboring island. Even at peak times like Xmas LI isn't necessarily full, which is a far cry from the days when they were over booked during such periods.

The problem with letting each airline serve a POS route exclusively is that it would occasion a fundamental change in the way each airline operates their route structure. For example, BW letting LI have POS-SVD exclusively would mean that in order to operate JFK-SVD as they've been doing, they'd either have to fly no revenue pax between POS and SVD or cycle the plane/crew POS-JFK-SVD-JFK-POS (which would also eliminate their ability to "top off" the flight with POS bound pax out of JFK when necessary). Either proposition would cost BW and make JFK-SVD more difficult to service.

In the case of LIAT, many of their routes are milk runs so for example an ANU-DOM-BGI-GND-POS routing would not only have GND originating pax bound to POS on the GND-POS leg but also ANU, DOM and BGI originating pax. Letting BW take over GND-POS entirely would either mean simply not flying any revenue pax between GND and POS which would make the flight costlier to run, having the flight terminate in GND and having POS bound pax transfer to a BW flight from there which I suspect would be a non-starter for many (although we may eventually end up in a scenario where they have no choice) or having an alternative routing where the last destination before POS is different (e.g. SVD, SLU or BGI) but that might make increase the cost of serving GND as a standalone destination.

I think it's time for hard decisions to be made. If loads into POS are really as low as 38% (which I find very hard to believe), then clearly LI cannot compete with BW and provides very little value to POS if they're not bringing in many pax. The largest E. Caribbean markets out of POS are already served by BW (albeit with some at sub-optimal frequencies). The only unique value that LI adds out of POS are smaller, niche markets that BW doesn't serve such as EIS, FDF, PTP, STT, SJU, etc. These could all be serviced via codeshare where BW flies the pax to BGI or ANU and LI takes them from there. LI has indicated that it is selling planes as they no longer have need for their entire fleet. Why not sell to BW and have them service all the E. Caribbean routes they determine to be worth it out of POS. The E. Caribbean would maintain its connection to POS via BW. Destinations that would remain unserved by BW could be connected to POS with transfers in ANU/BGI. It would simplify LI's network and let the airline with larger pockets assume a greater role in regional connectivity.

A codeshare between BW and LI is a good idea and could work to each other's benefit. I think though that instead of an airline being exclusive on a route, they combine forces to best effect. For example, on the POS-GND route, BW could run the early morning southbound flight. This would allow BW to maintain connections with its flights elsewhere (such as MIA and KIN) while LI could help fill the plane. The morning northbound could be LI as it starts a milk run continuing to SVD and BGI. The midday services could remain LI as milk runs start and end. BW could then run the late evening northbound as that is fed by long-haul flights. In this way there could be 3 flights per day in each direction rather than 5 or 6 and loads could be increased all around. In a similar manner SVD could be mostly LI with BW providing capacity on their flights continuing to and from JFK (which run 2-3 times per week). In this way each airline still operates in its traditional way while capacity is optimised and POS could have enhanced regional connectivity. The one potential pitfall here is that such a development ends up being POS centric and again the nature of regional politics may not favour this. LI after all have been focused on connecting various islands to international flights out of BGI and ANU and these are their major shareholders. BW for their part have significantly reduced their direct international flights from destinations apart from POS (the SVD flight to JFK being a notable exception).

The domestic route between POS and TAB is somewhat problematic to ask LI to run as it is very resource-intensive and politically sensitive. LI could however be financed to operate one or two round trips per day with one possibly continuing to BGI. This would add capacity independent of BW and offer an alternative route to TAB which would help for tourism purposes. In the first instance BW could host LI codeshares on selected domestic flights which dovetail with LI services onwards from POS.

Things are certainly possible, it just boils down to the business acumen and ingenuity to get things done.

Trintocan.

trintocan · Fri Apr 05, 2019 10:03 pm

gunnerman wrote:
If there were to be true cooperation you'd have to consider radical options such as BW being all-jet to serve the longer routes and LI taking over domestic routes including POS-TAB with aircraft based at POS. (Yes I know that POS-TAB is cabotage but the T&T government could allow it and pay LI to run what is a social service.) This would simplify BW's operation and enable LI to make better use of its bigger fleet.

LI have full traffic rights between POS and TAB and flew the route in the past.

Trintocan.

caribny · Mon Apr 08, 2019 11:40 pm

gunnerman wrote:
If there were to be true cooperation you'd have to consider radical options such as BW being all-jet to serve the longer routes and LI taking over domestic routes including POS-TAB with aircraft based at POS. (Yes I know that POS-TAB is cabotage but the T&T government could allow it and pay LI to run what is a social service.) This would simplify BW's operation and enable LI to make better use of its bigger fleet.

POS TAB is a very political route and LI will not want to get into this fiasco. Nor will either TAB or the gov't of T&T trust an entity that is not T&T based given the sensitivities involved. For instance BW operates flights after 12 midnight just to ensure a full range of service. This is a utility in its fullest meaning. BW receives massive support from T&T

There are two concerns surrounding LIAT's operations. The airline has drastically cut its northern Caribbean routes. There was a time that they ran as many as 10 flights daily north of ANU. Now its reduced to 4. They have also had to reduce flights to DOM. Also its apparent that POS is over served with both BW and LI competing. LI also has to reduce its fleet to offset its debt to CDB. As BW proposes to establish a regional base in KIN they can buy 2 planes from LI as these planes are fairly new.

I doubt that LI's POS loads are as low as 38%. I suspect this is just Ralph trying to bully T&T to cough out $$, an aspiration that he has had for decades. But I also suspect that there is a need to rationalize routes between BW and LI rather than flying half empty planes. Of the 3 GND BGI flights only one originates in POS and that one flies alongside LI's nonstop POS BGI service. So afternoon POS passengers intransit thru BGI to points north will be on that flight. BW and LI should also better integrate their operations in BGI, maybe reducing costs as they do so, but certainly facilitating seamless transfer for passengers arriving on one carrier and leaving on the other. A codeshare and integrated fares facilitates this.

LI has also moved away from the "milk run" to the hub operation so the morning flights out of POS to points beyond BGI fly nonstop to SLU and also nonstop to ANU (with further connections to its northern tier).

caribny · Tue Apr 09, 2019 12:15 am

trintocan wrote:
T.

In the case of LIAT, many of their routes are milk runs so for example an ANU-DOM-BGI-GND-POS routing would not only have GND originating pax bound to POS on the GND-POS leg but also ANU, DOM and BGI originating pax.

LI after all have been focused on connecting various islands to international flights out of BGI and ANU and these are their major shareholders.

Trintocan.

Some comments on this. No one boarding in ANU is going to use that flight all the way down to POS. So the last sector to POS will only be of note to the very few passengers boarding at DOM and there are other flights that can accommodate them. Given that the GND POS sector is quite late I even wonder what the loads are like. LI has a daily ANU POS GEO flight, as well as a daily ANU SLU POS flight. BW has an evening nonstop BGI POS flight.

In addition LI's role as a feeder to international flights is much less important than it used to be. Only DOM needs the ANU hub, which is partially why the northern tier has been cut. EIS/AXA UK connections via ANU are no longer handled by LIAT.

gunnerman · Tue Apr 09, 2019 2:08 pm

LI doesn't do DOM-POS these days.

The milk run is now ANU-PTP-BGI-GND-POS or ANU-BGI-GND-POS depending on the day of the week, another is EIS-SKB-ANU-BGI-OGL.

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