American Eagle, an affiliate of American Airlines (AA) is planning to increase flights to San Juan de Puerto Rico and the Caribbean destination of Bonaire. American Eagle has been flying on and off to Bonaire since April 1. However, beginning on May 1 through September 6, the air carrier will be making five weekly roundtrip flights to that small Caribbean island.

Continental Airlines announced it will begin nonstop service June 9 between Houston International Airport and two Mexican destinations (Durango and Queretaro), pending government approval. With the addition of the new routes, Continental will serve five destinations in Mexico from Houston. In December 2004, Continental began flights from Houston to Aguascalientes, Leon-Guanajuato and Morelia, Mexico. Continental´s Houston-Mexico flights complement the airline´s existing service to these markets from Los Angeles.

The cash-strapped airline Air Jamaica could be closed down as part of the restructuring exercise, warned Vin Lawrence, chairman of the restructuring group, who did not rule out a recommendation of that sort when the team presents its findings to Prime Minister Percival J. Patterson at the end of next month. Mr Lawrence said recent checks by aviation restructuring experts have shown that the airline is in a worse position than had been originally thought and its present losses cannot be sustained.

In the face of a probable collapse of Air Jamaica, respected Caribbean political scientist, Professor Neville Duncan, believes Caribbean countries should now seriously consider the establishment of a regional airline. We are going into the Single Market and Economy and we really need to be in charge of an airline that will move us around easily and cheaply in this region, Duncan commented from Kingston.

Finance and Planning Minister Omar Davies tried to dissipate the dark clouds looming over the debt ridden national airline Air Jamaica and reassured the public that the Government remains committed to keep the carrier on the air, though he admitted to the carrier´s financial woes. Davies, who was closing last Wednesday the 2005/2006 budget debate in Parliament, told the House that in terms of the total losses incurred by the airline during the period of privatization, there had been references to figures of US$830 million, US$675 million and even US$1 billion.

In a move to streamline operations and stay afloat, the Trinitarian BWIA airline cut its service to four of its gateways. Flights have been discontinued from Port of Spain, Trinidad to/from Costa Rica, Curacao and the Dominican Republic. Flights to and from Cuba will be cut, effective May 2. A government-appointed task force will complete an operational review of BWIA April 30. Tom Yew, general manager, said the government will then issue its recommendations for the growth of the carrier. BWIA is 97% owned by the government.