Fuel costs, insurance premiums, business costs and subsidised government competition have forced Island Air to discontinue its scheduled domestic flights to the Sister Islands after 16 years.
The closure will go hand-in-hand with the termination of 10 jobs.
‘Island Air is sad to announce the closure of domestic scheduled flights as of Tuesday 5 July,’ said Operations Manager and owner Marcus Cumber.
‘My employees have been loyal and hardworking, for over 15 years in some cases,’ he said.
‘We’re devastated. At least seven of the staff being let go have been here for over 10 years. My main concern is that they find employment as soon as possible.’
The terminations include those in baggage handling, station management, reservations management, cleaning and piloting.
Mr. Cumber gave several reasons for the closure of the flights, including a rise in fuel costs of more than 100 per cent in the past year and a growth of more than 200 per cent in insurance premiums since 9/11.
Hurricane Ivan was also a factor, causing business costs and local premiums for the airline’s building to soar.
The 2003 re-entry of Cayman Airways into the domestic sectors market to Cayman Brac and Little Cayman was another factor.
‘As a subsidised government entity it has been impossible to compete against,’ Mr. Cumber said.
In 2003, business had just revived following 9/11, when CAL entered the market with its Express service.
Mr. Cumber also cited the payment of half-a-million dollars in overdue landing fees as a crippling blow, especially on the heels of the CAL market entry.
According to Island Air, in 1992 a verbal agreement with government waived landing fees for domestic scheduled services., allowing Island Air to lower ticket prices. The agreement was never codified, however, and subsequent administrations sought the money. A settlement was reached last year.
The company, which will soon have only six staff and a single Piper Navajo aircraft, is focusing on private charters throughout the Caribbean, and continuing charters to Little Cayman and Cayman Brac.
‘We’re trying to give the personalised service we’ve been renowned for,’ said Mr. Cumber, who added that the company will also concentrate on other business, including third-party aircraft maintenance, hangar storage, rental of executive offices and airplane handling.
The airline will continue its crucial air-ambulance service to and from the Sister Islands.
Island Air’s private international charters include flights to anywhere in Cuba, Jamaica, the Bahamas and Central America, including Costa Rica, Honduras and Mexico.
The eight-person charters are popular with families and business people. Some couples have even jetted away purely for a romantic dinner on Cayman Brac.
Until now, charters comprised one-fifth of the airline’s business, but now the company will expand the service.
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Air-cruising is another novel way of travelling that will feature as part of the charters, which could involve four couples visiting Mexico, Cuba and Jamaica during several days..
Prices vary depending on client needs, but a weekend trip between Grand Cayman and Montego Bay, leaving midday on Friday and returning on Sunday evening offers two full days in Jamaica for $3,000 return, which is US$375 per person for four travellers .
Island Air offers charters to companies or individuals wishing to evacuate in the event of a hurricane.
The airline did a lot of working following Hurricane Ivan in September, when it flew free for four days, taking mothers and children to the Sister Islands for refuge.
‘Island Air would like to thank all the people of the Sister Islands for the all their support over the years. Island Air is proud to have been the lifeline to the Sister Islands for all those years. Please fly us before we close,’ said Mr. Cumber.
For more information on private charters contact Mr. Cumber at Island Air on 9490241.
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