Spirit Airlines buys Air Jamaica

[Dominicana440]

Spirit Airlines buys Air Jamaica

SAN JUAN, Puerto Rico (AP) — Discount carrier Spirit Airlines has reportedly acquired Air Jamaica in a government-led effort to privatize the island's money-losing national airline.

The Jamaica Gleaner newspaper says a deal was reached after a committee charged with the airline's privatization submitted its report. The newspaper cites unnamed government sources.

Spirit spokeswoman Misty Pinson was contacted by The Associated Press on Saturday and refuses to comment.

Prime Minister Bruce Golding has said Air Jamaica was losing $141 million a year.

Spirit is privately owned and flies to 36 cities in the U.S., Latin America and the Caribbean.

Source: Report: Spirit Airlines buys Air Jamaica - USATODAY.com

Comment: Maybe they are interested in Air Dominicana as well?

[Drake]

Does this mean that there will be direct flights from DR to Jamaica instead of having to go through Miami?

[Dominicana440]

Maybe. But most important for the region would be breakup of AA monopoly and professionalization of local airline industry into a PROFIT making business.

[Hillbilly]

Not that I know a whole heck of a lot about the airline industry, but it should be obvious that the Spirit business model is working, and making FLL an important alternative to using MIA, which is fast becoming the Anti-Christ of airports, according to many.

However, to expect lateral travel among the islands is perhaps wishful thinking. Only LIAT in recent memory served the islands from Santiago to Trinidad.

There is just not that many people going island hopping it seems...

HB

[Black Dog]

Originally Posted by Hillbilly

Not that I know a whole heck of a lot about the airline industry, but it should be obvious that the Spirit business model is working, and making FLL an important alternative to using MIA, which is fast becoming the Anti-Christ of airports, according to many.

However, to expect lateral travel among the islands is perhaps wishful thinking. Only LIAT in recent memory served the islands from Santiago to Trinidad.

There is just not that many people going island hopping it seems...

HB

You would think there would be more call for it wouldn't you? I for one would love to see more of the other islands on short visits. As for Miami airport, absoloutly right! The most chaotic airport I have ever been in!!!!

[edm7583]

Originally Posted by Dominicana440

Prime Minister Bruce Golding has said Air Jamaica was losing $141 million a year.

This part of the article is what stuck out for me. By US standards, a $141 million loss in a year is almost considered a profit! AA loses more than that in a month.

Spirit is a private company, so their financials are not open to the public, but in an interview last month, the CEO stated they had a $17 million profit for the first 3 months of 2009. They also have one of the lowest CASM (cost per available seat mile) of any commercial airline in the United States.
This is the best thing that can happen to Air Jamaica. I'm a huge fan of Spirit and their ULCC model.