Caribbean Airlines to cut Jamaica jobs

(Jamaica Gleaner) Caribbean Airlines Limited (CAL) plans to make major cuts in the number of former Air Jamaica workers who now service operations in Jamaica.

The rationale is that CAL is centralising its operations in Trinidad and Tobago.

Workers’ contracts end on April 30, and are not being renewed said a reliable source, adding that some 300 jobs in the information technology and accounting services would be more likely lost in the process. It’s reported that reservation agents would be next in line. Employees have already received letters announcing the termination of their contracts.

Sunday Gleaner sources say the Air Jamaica operations have been bleeding a substantial amount of cash – more than the US$50 million that Trinidad and Tobago put in last spring.

Efforts to get a comment from CAL’s head of corporate communications, Laura Asbjornsen, proved futile as she did not respond to queries sent by this newspaper.

In the meantime, news from Trinidad and Tobago is that the Cabinet is dealing with a number of issues involving CAL, including the ‘dysfunctionality’ of its board – and in light of the April 30 closing date of the CAL-Air Jamaica agreement, it is assumed that this is under review. Trinidad and Tobago has the right to walk away from the deal, up to April 30, without penalty.

While Jamaican authorities are pressing for the deal to be sealed as soon as possible, which also means Jamaica would then own 16 per cent of Caribbean Airlines, there remain serious concerns in Port-of-Spain about bringing the deal to a close. “As a matter of fact, well-placed sources believe the powers that be are looking for an excuse not to sign,” stated an article in Trinidad’s News Day last month.

But there is no solid evidence that the deal will fall through and, up to recently, CAL asked the US Department of Transportation (DOT) for permission to lease its own aircraft and crews to Air Jamaica from April through June, as it had encountered some delays and would not be able to “cut over” to the CAL computer system until June.

When that cut over takes place, it will have an impact. “If I were in Jamaica, I would be concerned that the long-term plans for consolidation have had little or no Jamaican input,” said another highly placed source in Trinidad.

CAL, in its application to the DOT, explained that in developing their transition plan, the joint applicants have concluded that it is advantageous to cut over Air Jamaica’s US service on a single date, after which all tickets and waybills would be issued with CAL’s ‘BW’ code and all service would be operated under CAL’s economic authority.

However, experts say it would take several months for CAL to complete all of the operational and technical steps necessary to commence its own Jamaica service.