The Editor, Sir:

It is a very important marketing strategy to fly the hub-and-spoke system in any airline. If you choose to fly point-to-point, then you will need high frequency, which requires great operational efficiency. I am trying to figure out why an airline would want to pull out of gateways such as Miami (the hub to Latin America and the Caribbean) and Los Angeles (the hub for the Far East and Pacific rim).

Flights from Latin America and Europe come into Miami and passengers have the ability to connect to flights anywhere in the United States or the Caribbean. I am assuming that these passengers will continue to have a seamless connection on American Airlines. The same applies for Los Angeles, where passengers from Japan, China, Australia and so on will fly into that city and have a seamless connection on American as well.

High frequency and low-fare flights

If Air Jamaica is moving away from the hub-and-spoke system and flying point-to-point, and wants, to be profitable, it will have to be prepared to fly high frequency and charge low fares, and have a one-class cabin (a model similar to Southwest). This would achieve economies of scale, because it would be in a better position to spread its fixed cost.

Oftentimes, companies tend to look in the wrong direction when they attempt to cut costs. Here is what I am suggesting to the CEO and all the decision makers:

1. Flatten the organisational chart - all you need are decision makers (a few managers) and executioners (front-line staff). Cut the middle and leave only positions critical to the operation of the airline.

2. Outsource most administrative functions (human resources, information technology, finance, etc).

3. Stop flying across the island (in my view, this is the biggest drain on the airline's resources). The revenue generated cannot cover operational costs.

4. Establish the following profit centres within the airline: (a) cargo (b) charters (for seasonal tourist markets and special events) (c) airport services (to handle other airlines) (d) maintenance services (to handle other airlines).

All decisions will have to be clinical, and the emotions removed from them.

I am also sure that if Jamaica is to secure funding from multilateral agencies, then the current state of Air Jamaica could pose a problem.

I am, etc.,

CHARLES SPENCE

charlesspence411@hotmail.com

Plantation

Florida