The US Federal Aviation Administration's controversial rating of the oversight practices of foreign civil aviation authorities is threatening the existence of Venezuelan carrier Avensa and starting to harm the international expansion plans of Air Jamaica.
After an FAA safety audit, Venezuela was categorised as a Category II country last November, meaning that any airline from that country is barred from serving the US with any new aircraft added to its fleet since the rating was imposed or adding new gateways. But the country was being considered for downgrading to Category III after FAA officials completed a safety reassessment at the end of February. This would effectively cut off the most significant revenue stream for Avensa, since the rating prevents any Venezuelan carrier from serving the US. The result, Avensa officials have warned, will be bankruptcy.
However, a Category III listing for Venezuela could have broader ramifications, industry experts warn. In Latin America, the FAA's safety auditing programme has become extremely controversial, with many carriers decrying it as an arrogant and unforgiving programme that ultimately benefits US airlines. With passions running so high, some say the FAA will not downgrade Venezuela's status. This may be the prudent approach, says Jeffrey Shane of Wilmer Cutler Pickering in Washington: 'Putting Venezuela in Category III would send a shockwave, triggering a major deterioration of aviation relations throughout Latin America.'
There are also rumblings in the Caribbean, after the newly privatised Air Jamaica had to postpone the startup of its thrice-weekly London/
Heathrow service because it cannot afford the low utilisation rates it would incur on two long-range A310s it is bringing in to the fleet to fly the route. The carrier originally wanted to rotate the new aircraft on its US services, but the US FAA's Category II rating of Jamaica takes that option away.
Air Jamaica was due to take delivery on lease from Delta Air Lines in time for the startup of the Heathrow route at the end of March, but has postponed the handover for a revised startup in mid-May, by when it hopes the Jamaican CAA will have attained the 'all-clear' Category I status. If FAA clearance is not forthcoming, Air Jamaica will start the UK services regardless and try to rotate the aircraft on non-US regional routes in the interim.
Air Jamaica's management acknowledges that foot-dragging by the Jamaican government is delaying implementation of the changes needed to obtain Category I. However, management spares most of its invective for the FAA. Allen Chastanet, Air Jamaica's VP sales, says it is ironic that two aircraft previously operated by a US major are banned from serving the US, especially after the FAA earlier this year granted Air Jamaica temporary dispensation to put the first two A310s leased from Delta on US routes and open up a new route to Chicago in February. 'Both Air Jamaica and the Jamaican CAA meet all international standards,' says Chastanet. The carrier has already incurred losses on the first two A310s as they sat on the tarmac at Kingston for three months before FAA approval was granted.
Air Jamaica hopes Category I status is forthcoming soon and not only because of the planned Heathrow service. The carrier is beginning a fleet renewal plan, which includes two more A310s from Delta and six new A320s.
M Odell/M Jennings
Source: Airline Business
