Lettersto the Editor
Cayman Airways'Directors Respond
Dear Sir,
We read your editorial in the 18 July 2002edition of Cayman Net News. Having done so, we are compelled toaddress several of the issues you raised, and we thank you inadvance for allowing us to do so.
1. Cayman Airways has been given a mandateby the present Government to break even, and the company is workingtowards that goal with a new Board and strengthened management.The idea of Cayman Airways losing 20 million dollars is definitelynot an option.
2. The company being head quartered in GrandCayman diversifies our job market by giving Caymanians the opportunityto train to be pilots, flight attendants, dispatchers and manyother specialized careers, which would not be available from foreigncarriers. Cayman Airways' payroll is approximately 12 milliondollars annually, which when multiplied by 5 (common economicmultiplier) equals approximately 60 million dollars circulatingin the Cayman Islands economy.
3. Two consultants' reports determined thatthe best schedule for Cayman Brac was jet service on high-demanddays, with commuter aircraft providing service on the low-demanddays. Cayman Airways is running the jets on high demand days atthis time.
4. For the last four months, Cayman Airwayshas been the leader in reduced airfares to the Cayman Islands.By offering these low fares, Cayman Airways has forced the othercarriers to match their prices, consequently bringing more touriststo these Islands to spend their vacation dollars.
5. With the rate of unemployment in theCayman Islands rising and the world trying to recover from terroristattacks and recession, this is not the time to consider closingdown Cayman Airways. This is a time for all Caymanians to worktogether to save 250 jobs that are essential to our local peopleand our economy.
Once again, we thank you for allowing usto respond to your editorial.
Mr. Roy McTaggart,
Chairman Cayman Airways Board
Mr. Moses Kirkconnell,
Director - Cayman Airways Board
Editor's Note:
A company established to boost a country'seconomy is only essential when said company is, in fact, meetingthat goal.
Currently, Cayman Airways is costingthe Cayman Islands. And it is for this reason, that current operationsneed to be reviewed.
For instance, thousands of commuter flightsthroughout the United States, Canada and Europe make well overthe 90-mile trip from here to Cayman Brac with aircraft with muchless seating capacity and jet propulsion equipment. There is aquestion as to whether or not the "consultants" whoreviewed the commuter service to and from Cayman Brac consideredsuch things as non-jet service or limiting commuter flights toa more reasonable number of days. It seems that when a flighttravels to Tampa with only 14 passengers and another to Miamiwith only 8, there can't possibly be any revenue generated fromsuch flights.
The current revenue projection is $40million for 2002. With a payroll of $12 million, Cayman Airwayshas one of the highest ratios of expenditures to income for anyairline. However, with half the fiscal year over, it is possiblethose projections have changed. If so, can Cayman Airlines offerup a new forecast? Keeping in mind, of course, that the recentreduction of fares made by Cayman Airlines also means reductionof revenue.
Beyond financial responsibility to theeconomy, of the 280 jobs currently being offered including overseasstaff, 15 percent are staffed by non-Caymanians. That is approximately75 jobs being given to outside workers.
If Cayman Airways were a privately ownedcompany, their bankers would have put them in receivership bynow. As a public company, shareholders must definitely considerbankruptcy as an option.
Cayman Airways is hemorrhaging and theredoesn't appear to be any visible turn around. Even if the NationalFlag Carrier made minor changes in its rates, flight schedulesand such, the events of September 11 and the current recessionare the very reasons why the people of these islands do not needto be held accountable for the perks and glamour which are attendantto owning a losing business.