Planned fleet reductions at Air Jamaica continue to fluctuate as ownership of the loss making carrier remains under review by the Jamaican government.
While the carrier's business plan still calls for downsizing its fleet from 15 aircraft to nine between 2009 and 2010, airline president and CEO Bruce Nobles tells ATI the airline is "still evaluating the demand we might expect after the summer peak".
Air Jamaica may operate seven aircraft in the fall and utilize nine aircraft during the winter depending on the outcome of aircraft sales as the Kingston-based carrier has retained a Focus Aviation to sell two CFM International CFM56-powered A320-200 aircraft. Focus says the aircraft "are available immediately".
"Depending on the financial considerations, we may do a sale and leaseback and retain the aircraft or we may sell them outright", Nobles says, adding the transactions will probably take between 90 days and 120 days.
But Nobles says of the carrier's overall fleet count: "Depending on the privatization process, the new owner of Air Jamaica might want to consider other options, so we are leaving ourselves with maximum flexibility."
In the meantime, two more aircraft will be returned early to International Lease Finance Corp (ILFC) on top of four Airbus A321-200s that were previously returned early to ILFC by the carrier.
One A321-200 will exit Air Jamaica's fleet by 31 July, followed by an A320-200 by 15 September, Nobles says.
Meanwhile, one A320 owned by US lessor GE Commercial Aviation Services (GECAS) that has been subleased to Chinese carrier United Eagle Airlines will return "shortly" to Air Jamaica, Nobles says.
The carrier's chief exeuctive denies press reports that the owners of Spirit Airlines have emerged as the likely buyer of Air Jamaica.
"No decision on privatization has been made," he says.
A spokeswoman for Jamaican Senator Don Wehby declined to name whose proposal the government is reviewing, but she does say that terms under consideration include a provision for the Jamaican government to maintain a minority equity stake in Air Jamaica.
Fleet adjustment is one measure Nobles has pursued as he intends for Air Jamaica to break even for the last six months of 2009 and post a profit in 2010. The carrier has outstanding loans of more than $600 million, and estimated annual losses of more than $150 million.
Nobles also axed operations to four markets and discontinued flights from Jamaica to Barbados and Grenada from 26 February to trim costs.
However, this month Air Jamaica launched seasonal service between New York JFK and Bridgetown using a guarantee from the government of Barbados. Flights will be available twice weekly through August, Nobles says, declining to elaborate on the guarantee due to confidentiality.
Source: Air Transport Intelligence news
