With the increase ofother airlines serving Cayman from the US, the National Flag Carrieris poised to counter its loss of market share ...
CAL to Service Belize?
Faced with a strict subsidyreported to be in the range of $3 million, it is understood thatplans are in the works for the national flag carrier, Cayman Airways(CAL), to consider reducing its non-profitable domestic serviceand pursue the more lucrative international flights.
According to a reliable airline industrysource, who spoke on condition of anonymity to Cayman Net News,it is believed that while CAL is in talks with the inter-islandcommuter, Island Air, about ceding some of its service to covera reduced schedule of jet service, the government-owned airlineis also pursuing another route, which will include Belize.
In fact officials from CAL recently flewto Belize "for talks" in connection with cementing adeal which the airline believes can be turned into a lucrativeroute, with the possibility of an ongoing flight from Belize toMiami.
Attempting to acquire routes with betterload factors appears to be the business direction of the airlineas it seeks to get out of loss-making performances. In this regardthe airline is looking at other regional routes.
While General manager of CAL, Mr Mike Adam,did not confirm or deny that the airline was seeking a Cayman/Belizeflight route he did tell Cayman Net News Wednesday, 20 March,that there still remains interest in striking an for the nationalcarrier to fly to Cuba.
CAL was exploring possibilities of thatroute to our Cuban neighbours some years ago but efforts in thisdirection were halted by the government of 1996 to 2000.
Should CAL succeed in obtaining a Belizeconnection, it could be seen as a recovery for the Turks and CaicosIslands destination it had given up and which was taken over byAmerican Airlines (AA). That Miami to Providenciales, T.C.I.,route is now being run by AA and has emerged as a lucrative routeowing to an increase in traffic between the two countries.
On the domestic front, CAL and Island Airare about to come to an arrangement for the inter-island airlineto take over some of the national carrier's flights between GrandCayman and Cayman Brac.
"We are negotiating that as well andhoping for a letter of intent to come out of that soon,"CAL General Manager Mike Adam said.
CAL has been losing money on the Grand Caymanto Cayman Brac route while Island Air appears to be doing goodbusiness on the route.
Island Air currently has 19 flights betweenthe two islands with the caring capacity of 19 seats per flight,totaling 114 seats daily, seven days per week. That company hadboosted its flight by two more per day from December 15, 2001when it added to the fleet the service of a British AerospaceJet Stream aircraft on a trial basis. That trial was scheduledto end mid-February but owing to satisfaction with the responseto the service Island Air is continuing the Jet Stream flights.
Currently Cayman Airways flies non-stopjet service between Houston, Jamaica, Miami, Tampa, and GrandCayman with connecting service to Cayman Brac.