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May 31, 2008
GOVERNOR FORMS PUBLIC/PRIVATE SECTOR COMMITTEE TO ADDRESS AMERICAN AIRLINES’ REDUCTION OF FLIGHTS TO THE REGION; COMMITTEE TO ADDRESS POTENTIAL IMPACT OF FLIGHT REDUCTIONS AFFECTING THE TERRITORY THIS FALL Governor John P. deJongh, Jr. on Saturday announced the formation of a special committee to proactively address the potential impact of a planned reduction in airline service to the territory later this year. According to a statement issued by American Airlines on May 27, the airline plans to "restructure American and American Eagle operations at San Juan, Puerto Rico beginning in September. This round of reductions will affect American and American Eagle flights originating from San Juan to the United States and various islands in the Caribbean." "Given the current issues affecting the airline industry, including the severe strain of rising fuel costs, we have a responsibility as a territory to get ahead of the issue and proactively address the potential impact to our economy this Fall and beyond," deJongh said at a Saturday meeting of the major stakeholders. The airline also said Friday it would lay off approximately 400 employees at its San Juan, Puerto Rico hub. In addition, American Airlines will reduce its daily flights to Puerto Rico to 18 from 38, and American Eagle's schedule will go to 33 from 55. Specific flight schedules will be announced shortly. "Skyrocketing fuel costs and a softening economy," along with high operating costs associated with American Eagle’s older aircraft were cited by American Airlines as the primary reasons for the reduction of service. Initially, the special committee will focus on:
Richard Doumeng, Chairman of the Board of Directors of the U.S. Virgin Islands Hotel and Tourism Association said Saturday, "This moment in time and how we react to it, is an extremely important one for the U.S.V.I. and the entire Caribbean. Our tourism based economies are almost totally dependent on air arrivals to receive our overnight visitors. Fortunately, this is also a time of unprecedented cooperation and synergy between the public and private sectors in the U.S. Virgin Islands and the rest of the region. If we face a challenge of this magnitude, at least we are proactively and aggressively attacking it together in a true team effort in a refreshingly positive way." Richard "Pat" Henry, President of the St. Croix Hotel and Tourism Association said he was shocked but by no means surprised at the developments. "As an industry heavily dependent on the influx of travelers to our shores for our survival, the news of the potential loss of flights into the territory by American Airlines is one of serious concern to us all." He said with the present economic conditions within the United States, and the ever-increasing cost of conducting business, this decision has potentially devastating effects to the entire region of the Caribbean, in regards to every business sector and its people. "The challenge is up to us to begin seeking and delving into new markets and means to service our needs." In addition, Governor deJongh has called a news conference for 10 a.m. on Monday, June 2 at Government House on St. Thomas where he and Tourism Commissioner Beverly Nicholson-Doty will expand upon the committee’s plans to address this issue. |
