Struggling Air Jamaica to implement cutbacks

Struggling carrier Air Jamaica has announced plans to trim its staff size, cut salaries of top executives and discontinue several routes as part of sweeping cost-cutting measures.

The announcements came two weeks after Jamaica’s government brought the airline back under its control. The airline will lay off some of its 3,000 employees to cut costs.

The airline also plans to discontinue certain routes and reduce the number of flights to North America, Europe and the Caribbean.

The airline was state-owned until 1995, when a group of investors led by hotelier Gordon “Butch” Stewart bought 75% of its shares. At the time, Stewart promised to improve service and open flights to major US and European cities.