The Editor, Sir:

I am trying to understand why Air Jamaica is trying to change the fleet in an effort to make the airline more efficient. I have a number of questions:

1. Why wasn't this thought of before? Is there new information that was not available?

2. What will be the cost of breaking the existing lease agreements?

3. Will the savings achieved in reducing the fixed cost (lease payments) outweigh a major variable cost (fuel consumption)? It is said that these older planes will consume more fuel.

4. If newer planes are replaced by older planes in an effort to obtain cheaper leases; how will this impact maintenance cost?

5. It is argued that these older planes have greater payloads. If this is to reduce the cost of delayed bags, how many days out of a given year is this a problem? Is there a competitive advantage to accept these excess bags?

6. It is argued these older planes cannot fly to London, what will happen to that route?

7. What business model is being used? Is it a regional carrier? Is it a short haul carrier with high frequency? Is it a long haul carrier? Is it a tourist carrier? Is it an ethnic carrier? Is it all things to all people?

8. How many profitable airlines in the industry generate revenue below US$500 million per year?

9. What lessons can be learnt from Singapore Airlines, BA, Southwest etc, all consistently profitable airlines?

I am, etc.,

C. A. SPENCE

charlesspence411@hotmail.com

PO Box 6592

Half Moon PO

Montego Bay