Air Jamaica Lays Off 100 Flight Attendants

Trapped in a financial crisis, Air Jamaica has laid off 100 flight attendants as part of a restructuring effort to take the airline afloat. The jobs cuts were the first phase of what is expected to be a large staff reduction at the debt-ridden the company, which was brought back under government control last month.

One hundred of the airline´s approximately 500 flight attendants were told they had been laid off after a meeting between Air Jamaica managers and union officials, airline spokeswoman Sandrea Falconer said.

Earlier this month, Air Jamaica´s approximately 50 senior managers agreed to salary cuts of between 10 and 30 percent beginning this year, a move expected to save the airline US$1 million (Jamaican $61 million) annually.

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

The government regained control of Air Jamaica on Dec. 23 and appointed a new board of directors. It said it will maintain control of the airline for at least six months.