KINGSTON, Jamaica, Jan. 6 (UPI) -- Cash-strapped Air Jamaica has announced plans to slash executive salaries, cut jobs and return some of its air fleet, the Jamaica Gleaner reported Thursday.
At a Kingston news conference Wednesday, executive chairman Dr. Vin Lawrence said the airline "has no money" and is in "survival mode."
Members of the airline's executive staff, numbering about 50 out of a staff of 3,000, have agreed to an average salary reduction of 18 percent, resulting in annual savings of $1 million, Lawrence said.
Unprofitable routes will also be cut, including one to Antigua, which will be dropped Jan. 10. Next month the airline will discontinue flights to Manchester, England, and London/Havana.
Lawrence said layoffs were inevitable, but did not offer numbers. He said pay cut negotiations with union members, including pilots, would begin Friday.
Additionally, Air Jamaica will be looking at returning three airplanes out of its fleet of 20 in order to save on leasing costs.
"I can't stress too strongly that Air Jamaica is in deep trouble," Lawrence said.
