Caribbean Airlines will not have a smooth ride as it takes over routes formerly operated by Air Jamaica out of Norman Manley International Airport at Kingston and the Donald Sangster International at Montego Bay.

Already, competing airlines have begun to flex their muscles in their bid to retain their market share, especially on the Jamaica-New York and Jamaica-Toronto routes. 

Even before the actual takeover by CAL on May 1, US-based budget carrier Jet Blue had already doubled its services between the Caribbean island and JFK International in New York. The latest airline to stiffen the competition is Air Canada on its Jamaica-Toronto route. 

That airline announced last week it was also doubling its services bringing it to four times weekly - Tuesday, Wednesday, Thursday and Friday - beginning May 3. Come June 20, it would add a fifth service on Sundays. 

According to a newspaper report out of Kingston, Air Canada spokesman Peter Fitzpatrick, while refusing to disclose additional details of the airline’s expansion plans said he expected business relations with Caribbean Airlines “should remain fruitful.” 

While he was not prepared to discuss Air Canada’s business relationships, including bookings, with other carriers because these were “confidential ,” Fitzpatrick did say however, the airline could not make any predictions about future business, except that “Jamaica is an important market for Air Canada that we have been serving for a long time and we will continue to do so.” 

Air Canada added that on certain days of the week it would use larger aircraft such as the Boeing-767 providing as many as 243 seats. 

CAL, on the other hand, will be using Air Jamaica’s Airbus aircraft which accommodates just about 134 passengers. 

In a release sent to Caribbean Business Report (CBR) last week, Air Canada pointed out that it had been serving Jamaica for 62 years, over which time it had developed very close and strategic linkages with the Jamaica diaspora in Canada as well as many important connections with businesses in Jamaica. 

Additionally it has served Jamaica’s vibrant tourism industry with adequate airlift over the years to ensure there was sufficient capacity linking Jamaica and Canada to meet the demand. 

Other airlines eager to capitalise on the discontinuation of Air Jamaica’s services to Orlando and Chicago in the United States and Nassau, Curacao and Havana in the northern and southern Caribbean are US-based Air Tran and the Indigo-owned Spirit Airlines, which was the first airline courted by Air Jamaica in its search for a buyer. 

When that effort failed, the Jamaica government turned to Trinidad and Tobago for assistance in its divestment of the cash-strapped airline. 

According to CAL chairman Arthur Lok Jack, the opportunity was seen as a great business deal, since the TT airline would not have to assume any of Air Jamaica’s legacy debts, which are in the vicinity of US$800 million, including severance and other costs. 

But the Trinidad and Tobago government approved US$50 million a week before the deal was consummated. The money, the chairman said, was needed for “new equity to fund working capital for the new business.” 

Vincent Morrison, head of the National Workers Union (NWU), which has represented Air Jamaica workers for many years, is not happy with the new salaries being offered to the 1,000- odd Air Jamaica employees now working for Caribbean Airlines. He was eyeing the US$50 million infusion as a means of increasing salary offers. 

Although the Jamaican Divestment Committee saw the infusion of the funds as providing more than adequate comfort, the NWU head said “it would seem that the arrangement between CAL and Air Jamaica that going forward that capital would not be a big problem and my understanding is that CAL will infuse another US$50 million to assist with the whole process.” 

However, CAL chairman Lok Jack emphasised, “This is definitely not so.” 

A radio news report from Kingston said Air Jamaica pilots rehired by CAL were forced to accept pay cuts up to as much as 45 percent so their salaries would be the same as CAL pilots. 

But Morrison, speaking at the Jamaica’s Observer newspaper Monday Exchange of reporters and editors more than a week ago, warned CAL bosses that low wages “makes no sense because you are not going to be able to keep (skilled workers) and not going to have productivity.” 

He lamented over the years, hundreds of Air Jamaica employees accepted pay cuts in the hope of future improvement. Those sacrifices might have been in vain, he said. 

Last week, Jamaica’s Minister of Finance Audley Shaw told the House of Representatives his government was satisfied with the CAL-Air Jamaica deal. He said the partnership had met the objectives of the Air Jamaica Divestment Project while protecting the interests of the government and the Jamaican people. 

Shaw described the financial deal as “fair” as far as his government was concerned and it was “even superior to the ones contemplated in the initial CAL bid or by the other bidder.” 

He credited CAL for having strong airline expertise and appropriate capital. 

“The partnership will ensure the provision of adequate and sustainable airlift to and from Jamaica, which remains a favoured tourist destination and the cash drain on the government’s resources associated with the financial obligations to Jamaica’s national airline will cease,” he said.