=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2005/01/05/f= inancial1729EST0310.DTL --------------------------------------------------------------------- Wednesday, January 5, 2005 (AP) Air Jamaica announces sweeping cost-cutting measures STEVENSON JACOBS, Associated Press Writer (01-05) 14:29 PST KINGSTON, Jamaica (AP) -- Struggling carrier Air Jamaica said Wednesday it will trim staff, cut salaries of top executives and discontinue several routes as part of sweeping cost-cutting measures. The announcements come two weeks after the Jamaican government took control of the carrier. The new management said the airline was expected to post losses of $90 million for 2004 and needs dramatic operational changes to keep flying. "Air Jamaica is in deep trouble and requires significant adjustments and changes and significant cost restructuring for it to survive," Vin Lawrence, the airline's executive chairman, told reporters. Lawrence said the airline would lay off some of its 3,000 employees to c= ut costs, although he declined to say how many. A recent report commissioned by the airline recommended a 15 percent staff reduction. In addition, Air Jamaica's approximately 50 senior managers have agreed = to salary cuts of between 10 and 30 percent beginning this year, a move expected to save the airline $1 million annually, Lawrence said. The airline also plans to discontinue certain routes and reduce the numb= er of flights to North America, Europe and the Caribbean. The government announced on Dec. 23 that it had regained a majority stake in Air Jamaica and appointed a new board of directors to lead the airline out of crisis. It said it will maintain control of the airline for at least six months. The board's priority will be pulling the airline out of its $560 million debt, including $236 million it owes the government. The government has agreed to inject $25 million to help restructure the airline, while the carrier will contribute $20 million to the plan. Air Jamaica has struggled with high fuel costs and massive losses since the 2001 terror attacks. Air Jamaica flies to a dozen U.S. cities, and operates a codeshare agreement on many flights with Delta Air Lines. It is the Caribbean's largest regional airline. ---------------------------------------------------------------------- Copyright 2005 AP