Air Jamaica … more than a national airline

Abstract

Subject area

Hospitality and tourism management; strategic management; marketing, transportation system management and human resource management.

Study level/applicability

Undergraduate in business and management and hospitality and tourism management.

Case overview

This teaching case outlines the historical background, successes and challenges of the national airline of Jamaica. It shows how a national airline, which is a heritage asset and one that has provided nostalgic and sentimental value to the Jamaican people and its passengers, had to be divested. The airline has been faced with several challenges; the major one being high-operating costs, especially in light of the global economic recession. The case also highlights the various procedures carried out by the Government of Jamaica before and after the divestment arrangement and also by the acquirer, Caribbean Airlines.

Expected learning outcomes

The student should be able to: first, differentiate among the various strategic management terms and concepts used in the case; second, explain the importance of strategic decisions versus emotional decisions; third, assess the environmental factors that impacted Air Jamaica's operation; fourth, analyse the environmental factors that should have been considered by Caribbean Airlines before making the decision to acquire Air Jamaica; fifth, carry out a comparative analysis of the various corporate-level strategies to identify the best option for the Government of Jamaica; sixth, propose reasons why Caribbean Airlines acquired Air Jamaica.

Supplementary materials

Teaching note.

Citation

Sinclair-Maragh, G. (2011), "Air Jamaica … more than a national airline", , Vol. 1 No. 1. https://doi.org/10.1108/20450621111110627