Janet Silvera, Senior Gleaner Writer

WESTERN BUREAU:

The cash-strapped Air Jamaica is anticipating savings of US$11 million (J$781 million) per annum with the introduction of two ATR72 aircraft on the domestic route between Montego Bay's Sangster and Kingston's Norman Manley international airports.

The airline's chairman Shirley Williams told The Gleaner this week that the revived domestic service, which should have commenced on March 15, has now been moved to March 31.

Initial wet lease

The airline has entered into a four-month initial wet lease with a company out of Ireland.

A wet lease is any leasing arrangement in which a company agrees to provide an aircraft and at least one pilot to another company. It is typically utilised during peak traffic seasons or annual heavy maintenance checks or to initiate new routes.

Currently, domestic passengers are transported by jet across the island, intermingling with international travellers, a situation, Williams says, which cannot continue.

"The distance is too short to use a jet and it is just not economically feasible, it will cost much less for fuel to land and take off an ATR72. Crew cost is less and maintenance is less," Williams argued.

Increased baggage

The aircraft has the capacity to carry 72 passengers, but will transport only 66 persons at any given time, in order to make way for the number of bags that it has to accommodate.

The flights will operate at least nine times per day between both cities, "and a big part of this new service is to meet the transportation needs of the British Airways and Virgin Atlantic passengers who now come in and have to drive across the island," said Williams.

According to Nordic Aviation in Ireland, it costs US$110,000 (J$7.9 million) per month for a dry lease (crew not included) for such an aircraft.

Williams was tightlipped about the fare that the route would attract. The airline now charges J$8,500 return between both cities.

An aviation expert has estimated that it will cost US$5,000-US$7,000 per hour (J$350,000- J$490,000), depending on the age, configuration and condition of the aircraft, to operate the ATR72.

Increased airfares?

If the airline runs 70 per cent capacity, it is projected that it will lose money, so it must increase the airfare to at least US$170 return (J$11,900) to make a marginal profit, said the expert, whom The Gleaner has chosen not to identify.

"When you wet lease an aircraft, the company leasing is responsible for fuel, navigational fees, landing fees, handling and the crew housing and transportation," he continued.

It is not clear what deal Air Jamaica has made with its lessee.

janet.silvera@gleanerjm.com