American Airlines nosedives
Dickson Igwe - Saturday, February 4th, 2012 at 8:54 AM
Dickson Igwe
A series of articles on Virgin Islands airport and runway expansion, and development, looks at a failing airline
The national conversation on the Virgin Islands international travel dynamic, including the issue of airport development and runway extensions continues, with thought provoking narratives emanating from various writers in the news media.
And BVI Beacon Contributor, William Walker, in his latest rendition of airline matters in the Paper’s January 26, 2012 Edition, an article titled ‘’ Government budget plans scrutinized’’ stated that it was ‘’ highly unlikely that any direct flights from Canada to Beef Island will ever come to play;’’ that the distance was just too great.
A definite head scratcher was his further description of how ‘’Air Canada is now operating a direct flight from Toronto to neighbouring St. Thomas once a week, on an Airbus 320 that returns the same day.’’ That sounds a wee bit contradictory, don’t you think? By the way, this Layman has discovered that Air Canada is today also flying into St. Kitts’ Robert Bradshaw, once a week, and to the delight of that small country’s tourism industry. Yes, every overnight visitor counts these days in a West Indies that is increasingly a tourism monoculture!
Now, to be perfectly fair to Mr. Walker, he should have stated that flights from certain parts of that great Canadian landmass to Beef Island were impractical, and he was probably referring to the eastern part of Canada; he was therefore correct in inferring that flights from certain parts of Canada to these Leeward’s were not in play. Not today in any case
OK, Mr. Walker, in his article, then went on to further reveal how Yahoo Finance, a US media, described JetBlue as the worst airline for on time flights, and that ‘’almost one in eight flights was an average of 65 minutes late. This was attributed to the use of Boston as a hub and the resulting bad weather which comes primarily in our high season.’’ Interesting!
He then described, and on the same note, how that same media tagged American and American Eagle as the worst airline for baggage and passenger service, stating that a passenger even concluded that ‘’ American has stopped treating us as people, and started treating us as freight.’’
This Pilgrim fully agrees, despite the airlines’ savvy advertising, with the assertion that American sometimes acts like its customers are trash. And he has personally experienced rudeness from its airline staff en route to Dallas some years back, so he is not surprised that American is presently in Chapter 11.
The lesson here is this one: customer service is king, and one bad experience cancels out all the good a business may have done in the past. That is just the way it is. Today, American announced it was shedding 13000 jobs: why is this Observer not surprised! It appears that customer service ceased being a priority with American some time back.
One more thing: this wannabe test pilot has noticed that Mr. Walker appears to be searching, even digging, for every reason, no matter how obscure and remote, for asserting that the Virgin Islands is neither ready, or capable, of catering for large jet aircraft flying in from major population centers. In this Pilgrim’s opinion, the Writer is simply wrong in his many highly informative exertions.
Now, in light of the National Democratic Party Government’s recent announcement, that it was intending to expand airport infrastructure in the Virgin Islands to cater for larger and more powerful jetliners in the near future, the debate on this issue takes on a wholly different direction, and even complexion. It is no longer a debate on the whether or not, and why, or if; but the what, when, and where.
OK, and getting back to the obviously very well informed William walker, and another article that caught the attention of this Pilgrim was a narrative that appeared in the BVI Beacon of December 21, 2011, titled ‘’ Critical eye cast on airport expansion,’’ and yes it lived up to its title: it was critical and insightful.
Mr. Walker in that rendition asserted that ‘’ if one wants to predict the tourist season, follow the Dow Jones average.’’ That the tourism industry in the Virgin Islands ‘’ over the last 30 years has consistently followed the state of the United States, and to a lesser extent, the United Kingdom, economy.’’
Good point sir and instructive: the Department of Tourism should use these figures as a spur to looking for markets in other places, such as Pacific Asia, the European Community, and Latin America, and begin to wean itself off the overwhelming dependence of Virgin Islands tourism on the US and British economies. Do bear in mind that the economic outlook for the Western economy is as bleak as it can get these days.
This is owing to the fact that the Western economies are being crushed by unsustainable debt, and projected to grow very slowly economically in the coming years, with consumers anxious about their futures and well being. The Western, especially European banking system is furthermore very shaky this February, 2012. And the housing market, a pointer to US and British economic growth, remains languishing in the doldrums.
Latin America, led by Brazil, and the Asian Pacific with China as hub, is on the other hand growing strongly, although there are signs that slow growth in the West is beginning to act as a drag on these economies. And the focus for the Tourism Board needs to shift somewhat towards a strategy of marketing in these regions.
One bright spot in the West, and worthy of note for Virgin Islands tourism, is a booming German economy, with the German national, a prodigious and affluent tourist and traveler. This is a result of Germans possessing high equity levels springing from a longstanding culture of thrift, and an export machine second to none. A Virgin Islands tourism agent based in a major German City will be of much greater value today, than putting that agent in a recession hit geography with growing unemployment.
More to the point, Mr. Walker appeared to be in full agreement with the majority of stakeholders in tourism, when he wrote that ‘’the Virgin Islands needs to be easily accessed and competitive.’’ He further insisted that ‘’airline connections to Beef Island have never been absolutely optimal.’’ He went on to inform that airlines do not schedule their flights randomly; but lately and more than ever airlines are determining schedules ‘’ based on profit margins. The airlines are now in a tight economic position that does not permit empty seats, unless those seats give access to other more profitable routes. And this is never true of the Caribbean.’’
That may be true, but then a number of airlines appear to have started flying directly into the Eastern Caribbean from Canada and the USA, so things are not as bad as they seem. In any case, that type of risk is always a factor in any type of commercial decision. Many a time, whether there is an effective and profitable market for a service or not, is only ever discovered when you begin to trade, feasibility studies notwithstanding. Business always entails risk. The Writer further advised that the Department of Tourism and its allies ‘’ should make every effort to reduce the sharp difference between the high season and the low,’’ explain how that is done sir!
Now, and returning to the ubiquitous American Airlines, this behemoth is in financial trouble today, or so it appears, but it certainly isn’t the only airline capable of flying into the West Indies. This US Carrier is for all intents and purposes, certainly not omnipotent, especially in regard to these Antilles and our international travel dynamic. The American Airlines headlock on Virgin Islands air travel is coming to an end, a good thing.
The Beacon Contributor stated that ‘’ it is improbable that American is going to look with favour on expansion into the Caribbean. Such a move would indeed be against the company’s current policy of contraction on non profitable routes.’’ But isn’t that American’s affair? The Virgin Islands can understand American’s plight, even shed a tear, but life goes on!
American is certainly not the only airline with the potential for flying into these islands from the USA. In any case, that company’s commercial and marketing savvy is very much lacking in this Observer’s opinion. American appears to be increasingly anachronistic these days: a regional monopoly that probably needs to be put to rest!
To be continued
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22 Comments
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People tend to oversimplify the discussion – bigger airport or not? But it is partly about how you position yourself in the tourist market. BVI specialises in niche high value tourism – that does not generate a lot of passengers. Direct flights tend to follow mass market low value tourism (like the DR, and Barbados). We know where we are now – do we want to make a fundamental change to mass market? If so that involves a lot of infrastructure costs beyond merely upgrading the airport. And can we compete in that market? No way we will ever be as cheap as the DR – and mass market tourism does not work well in countries with a high cost of living.
I totally agree with you. I think we should stick with what we do well. The charter boats are having a good season, villas appear to be still doing well, megayachts will increase and we have the high end resorts. I believe that should be our focus. It is good for the economy and good for the environment. I think we should look to St. Bart’s as a model. Yes, i know we cannot be them but it is a vision that works for all.
I realize there is a lot of national pride in having an international airport and I hate to say it but this is pie in the sky. I have been coming to the BVI for 15 years and fly into STT. When I am not on my favorite island on earth I build airport runways. A runway built for heavies requires a lot of concrete and steel much deeper that what EIS has. Even more on fill. You are looking at something like a half BILLION dollars or more just for the runway, not including the fill, rip rap and other essentials. How are you going to pay for it? The fees you already charge the airlines makes SJU/EIS one of the highest per mile fares in the world.
It makes much more sense and far less money to expand and improve the ferry service and let STT eat the cost of the runway.
Even If I were asked to bid on the work I wouldn’t because I can’t do that kind of damage to the island and people I love.
That is simply nonsense- maybe you should go check your numbers again- no wonder the US and Europe are in recession- the pie in the sky is your totally faulty costings Visitor
Stick to engineering-
That’s utter rubbish my friend! Half a billion dollars? LMAO!!!! Is that Zimbabwe dollars?? We never said we’re building a road from here to MIAMI, we said we’re extending the runway to get direct flights from there. Get it together, stop smoking that stuff!
I would think we need to continue being proud that it isnt a mass market and it takes a little time to get here. Just recently there was an article about the BVi in a UK paper that talked just about that – that it may take a little extra time to get here but then thats why its nice to be here. Does anyone really want to see a St Thomas or a St Martins????? Come on guys those two islands are over crowded, ugly, and have nothing to offer the discerning tourist.
Extend the runaway,lower the hotels rate/make them more competitive I guaranty more tourist will come. A major proble with the BVI is the high hotel rate.
To here we go again- many people agree that STT could become a new and improved travel dynamic with direct customs and immigration clearance of passengers at port facilities in the USVI- then passengers will simply face a security clearance when arriving at a Tortola port- all it takes is thinking out the box- a lot more can be done to improve BVI arrivals in St Thomas and get them here much more pleasantly and efficiently- one other idea is a reception facility somewhere in St. Thomas that hosts clearance facilities that all passengers must visit before boarding a ferry- but a facility that will take care of luggage, baggage, etc – a bringinging together all the ferries under one roof- but that still is not an alternative to a hub type jetliner facility in the Virgin islands-
The opportunity cost of having jumbo jets land in the Virgin Islands is some degree of environmental degradation- thats a sad fact- but I sincerely believe that some of the views on this aspect of the debate are simply alarmist. The people of this territory who own small struggling businesses are intelligent and savvy enough to be fully aware that a hub type powerful jetliner facility will be good for them in the short, medium, and long term.
Would not these same benefits be achieved at lower cost by having an efficient ferry service to deliver visitors from STT? The savings could and should be spent on finishing projects like the hospital (a decade now in the making), and or improving our schools, creating career opportunities for youth, providing a reliable supply of water and electricity, dealing with increasing crime etc.
However, one can argue that by utilizing STT we’re in essence advertising their product for them, FREE of charge? I think both can be done! Proper Ferry service plus the upgraded Airport. We need to start utilizing the resources close to us and get moving. This will not bankrupt the country once it’s done right.
i have long suggested that director ward meet with american airlines and other airlines to get more flights to the bvi and to date this has not happened. wake up.
I think that is unlikely to succeed. The Puerto Rican government has been locked into a dispute with AA for years now. If an economy as large as Puerto Rico cannot leverage its position to persuade AA to make a greater commitment, what chance do we in the BVI have?
Canada, Germany, Hong Kong & Beijing should be an opportunity for us to grow our brand in.
And they would assist with funding if necessary as well! When HL Stoutt was building the college, this same discussion was going on. It’s farm land, it’s too big, we don’t need it, we could just send our kids away blah blah, now look at it. Same way people are now saying let’s continue going through STT and just ignore the obvious problem.
For certain, the Government will be having educational and informative public meetings prior to moving forward. At that time I’m sure the information regarding the decision would be put forward.
Lets extend the runway. Having jumbo jets able to come intot tortola will easily inbcrease the tourism.
Customer service is not to be expected in the airline industry. getting from Point A to Point B within a fairly reasonable timeframe is the only customer service the airlines seek to provide any longer. How I would love a DIRECT flight to Beef Island. Unfortunately, filling a weekly flight is more likely than a daily flight. And of course to fill that flight, consolidating passengers through a “hub’ airport will be necessary to fill the flight. So,for me, I would just be adding another flight to my trip and the associated costs. I routinely arrive via STT and ferry to West End. An average savings of $300 per ticket versus flying into EIS. In the short term, a reliable, intelligently scheduled ferry service would boost tourism. I can never count on the 10 am ferry, so I take the 7am. Instead of spending my last day and dollars in the BVI, it goes to STT. Nickels and dimes add up to big dollars fast!
The airport seems to be a big wishlist item for folks. Be careful what you wish for. Look what the cruise ships have done for(to) the BVI
My sentiments exactly!!!
American Airlines has maintained that the Caribbean flights are no longer profitable for them. Giving up the majority of their flights to San Juan where they had a large and solo terminal is indicative. Flights to Haiti and the Dominican Republic was a profit maker when the AirBus300 was being used because the AirBus’ cargo capacity was tremendous. These aircraft have been phased out primarily due to maintenance issues and AA has since been concentrating on Europe/Asia. A ticket to London from Jfk is overall less expensive than JFK to the Caribbean.
There is no major airline clammering for the Caribbean market,not even Virgin Atlantic or British Airways least of all to the USVI/VI/Puerto Rico St Croix. My limited understanding in the area of airlines,is that it has to do with fuel cost and landing fees. Jet Blue is upcoming and these routes are their for their taking as they rapidly beome available.
Expanding the airport at EIS has no real rhyme or reason to me and the chaos and disruption, the environmental factors …A large airport is not what the BVI is about and is counterproductive to the image of the VI, an image and unique VI experience which serves us well.
Air Sunshine has served us well and now with Cape Air and BVI airlines we can increase flights to EIS. I propose that is the area to develop as we think out of the box. Encourage more smaller airlines and we may hopefully get slightly bigger planes. Especially as LIAT is unreliable and the sole carrier for some destinations.
Dickson you have been advocating a longer runway for quite a while now. Mr. Walker is equally against it just as some Virgin Islanders. My question is this: why wasn’t the runway extended to at least 6,000 feet when the major changes were made a few years ago? There must had been a reason! And if it was true then, it has to be true now.
Notwithstanding the above, I am all for having direct flights to at least Miami/Fort Lauderdale from Tortola. So I agree with you that the extension is necessary.
Perhaps Mr. Walker should consider the recently closed Kai Tai airport in Hong Kong where 747 landed despite a very steep and sharp approach.
I believe the Kai Tai airport was in fact closed due to the steep and sharp approach issue.
More relevantly, whereas a direct flight from EIS to the US mainland or Europe may be well desirable, not a shred of convincing evidence has been offered to show that if the airport is expanded that airlines will take up on the offer. Indeed, it seems that the financial realities are limited already. Given the absence of infrastructure to house all these extra, where is the market for airlines at EIS? Look how empty the AE flights are now. The only other choice is for an airline to charge absurd prices to make up for empty seats. That hasn’t work on AE to SJU. How many passengers are willing to pay high prices? Many already shirk EIS and use STT for that very reason. Yes, a longer journey for sure, complicated by coordinating present ferry schedules, but surely at the end of the day, the BVI would be better served by investing in more tourist infrastructure first. Or even investing in the needs of its people (education, health care, tackling increasing crime, reliable electricity and water supply, garbage handling etc) or finishing projects that are languishing (hospital etc) before spending millions on expanding to have a longer runway.
The runway was not extended beyond its present length because the deciders at that time had the vision to want to protect the marine industry which is one of the reasons people fly to the BVI. Also 6000 feet is still not enough for large carrier operation. Kai Tak airport whose runway was 11,187 feet long was the 8th most dangerous airport in the world. Before it closed in 1998, pilots flying into Kai Tak airport had to undergo special training before being allowed to land in Hong Kong.
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