=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/03/13/f= inancial2319EST0386.DTL ---------------------------------------------------------------------- Thursday, March 13, 2003 (AP) Air Jamaica tries to survive travel industry decline VIVIAN TYSON, Associated Press Writer (03-13) 20:19 PST MONTEGO BAY, Jamaica (AP) -- Air Jamaica began a series of cost-cutting measures Thursday, including renegotiating aircraft leases, shifting flight schedules and laying off 29 employees, or about 7 percent of its work force, a spokeswoman said. Some management positions and salary bonuses have been eliminated as the airline attempts to trim expenses to deal with the depressed state of the travel industry, spokeswoman Sandria Folconer said. Remaining staff members have been asked to accept salary cuts of 3 perce= nt to 10 percent for three months beginning in April, she said. The airline is looking to save about $25 million (Jamaican $1.4 billion) with the measures, but may be forced to make further cuts in the next few months, she said. The airline gave no details of possible changes to its flight schedule. Regional airlines have been hit hard by the decline in passengers following the terror attacks on the United States, which also led to higher insurance and security fees. The Jamaican carrier's short-term goal is no longer to make profit, but simply to survive, the company's chief executive Christopher Zacca said in a statement. "In light of the pending war and the deteriorating conditions in the industry, in addition to the rising cost for fuel, there was no other choice," Zacca said. This is the first time since Sept. 11 that Air Jamaica has laid off employees. Last year, the airline announced losses of $70 million (Jamaican $3.7 billion). Air Jamaica is the Caribbean's largest regionally based carrier, offering more than 360 flights a week to several U.S. and British destinations, including New York, Boston, Chicago, Philadelphia and London. =20 ---------------------------------------------------------------------- Copyright 2003 AP