There is a growing segment of the Trinidad and Tobago public clamouring for its home-based regional airline, Caribbean Airlines (CAL), to sever link with Jamaica in the wake of mounting losses.

Some segments of the public blame the loss making routes in and out of Jamaica for the increasing operational deficit being incurred by CAL over the years since it bought Jamaica’s then national carrier, Air Jamaica, in 2010.

CAL’s accumulated losses is now estimated at US$454.5 million (over TT$3 billion), while posting a TT$172.7 million ($26 million) loss for the first quarter 2021 added to the operating loss of TT$738 million (USD108.5 million) booked in 2020.

In addition, there was a 75 per cent decline in revenue, compared to the same three months in 2020. In 2010, the Government of Jamaica agreed with CAL that it would designate it the exclusive national carrier of Jamaica when it bought Air Jamaica.

The Jamaican Government committed that it will not request designation of national carrier status for any other air carrier for as long as CAL’s Jamaican operations maintain a minimum level of service and meet certain other criteria.

One Trinidadian, John Jessamy, writing in the Trinidad and Tobago Newsday, commented that CAL’s, “agreement with Jamaica was a disaster.” He wrote that, “as recent as May CAL signed an agreement to absorb 1,000 Jamaicans as pilots, cabin attendants, maintenance engineers and ground staff, while the T&T Treasury is bearing this burden while Jamaica is laughing all the way to the bank.”

Jessamy emphasised that from June 2020 to now, Jamaica has recorded a total of 816,632 stopover visitors and generated in excess of US$1.31 billion, questioning whether CAL got a fraction of that money.

In responding to his question, the Trinidadian contended, “we stand all expenses and Jamaica waits for its share of the profits at the end of the year. That’s ludicrous. CAL surely needs restructuring. The first thing to do is sever the link with Jamaica.”

He charged that since CAL was formed in 2006, it has not made a profit of any real value but continues to receive a handout from the Ministry of Finance annually.

In dealing with the financial crisis at the airline, Jessamy is suggesting that CAL forge an alliance with LIAT and service the entire Caribbean with only ATR turbo prop planes. He was adamant that Jamaica should not be in this partnership, arguing that Kingston “is only interested in international travellers to fund its tourism product. It is about time we get this monkey off our backs.”

Interestingly, CAL is 88.1 per cent owned by the Government of Trinidad & Tobago with the Jamaican Government holding the remaining 11.9 per cent. The airline operates bases at both Port of Spain (Trinidad and Tobago) and Kingston’s Norman Manley (Jamaica).

CAL holds 8.42 per cent market share at Kingston City Norman Manley International in terms of weekly airline seats, third in line after JetBlue Airways (B6, New York JFK) with 49.12 per cent and American Airlines (AA, Dallas/Fort Worth) with 9.66 per cent.

Jessamy’s sentiments about CAL delinking with Jamaica is shared by several members of the society; some among them in Parliament. Pronouncement by several Trinidadians suggested that they see Jamaica as being an albatross around the neck of the T&T-based airline ever since its purchase of Air Jamaica.

There has been no response from the Dr Keith Rowley-led Trinidad Government about talks of CAL severing ties with Jamaica, but the Administration has announced a restructuring of its operations at both bases in Jamaica and T&T.

Finance Minister Colm Imbert told Parliament two week ago that, “Caribbean Airlines’ restructuring will be taken in both countries in the best interest of the airline.”