JO - Air Jamaica is in a sordid mess
Air Jamaica is in a sordid mess
Sunday, November 16, 2008
A recent article in another daily entitled "Air Jamaica Must Go! No Clear Plan If Divestment Fails", after boisterous laughter, begs the question: Who among the sensible did not already know that?
It did not take an imported airline CEO to point that out to the Jamaican people who may have to continue absorbing the losses of Air Jamaica after March 2009. Bruce Noble's proclamation is only a preamble to the inevitable failure that is to occur, since no one should be so foolish as to think he arrived at Harbour Street with a magic wand to erase years of boardroom mismanagement and failure.
Mr Nobles is just another US airline executive who comes here under the guise of a "messiah" who will make all tragic losses go away, to be replaced by a deep-pocketed investor in four months.
The reality of the marketplace is that potential investors are backing away from absorbing financially troubled operations. In the past week Lufthansa has suspended talks with SAS Group, and the Chinese government is rethinking support of its major domestic carriers, Air China, China Eastern Airlines and China Southern Airlines. (Some of these were earlier promoted by Don Wehby as possible investors).
Air Canada has reported a third quarter loss; DHL/Deutsche Post is reducing operations; Delta and Northwest Airlines are contracting by merger to survive; thousands of people are being laid off; and airline investment capital is disappearing.
Bruce Nobles did a mediocre job with Hawaiian Airlines at best and Subodh Karnik abruptly departed ATA Holdings Group in March 2008 with a less-than-stellar record of corporate performance. His history with Delta Airlines as a marketing executive is worthy of note.
This Air Jamaica story is now a national joke!