US embassy cable - 05KINGSTON1318

UNCLAS KINGSTON 001318 
 
SIPDIS 
 
STATE FOR WHA/CAR/ (WBENT), WHA/ETRD (MATTINGLEY) 
 
SANTO DOMINGO FOR FCS AND FAS 
 
TREASURY FOR L LAMONICA 
 
E.O. 12958:  NA 
TAGS: EAIR, JM 
SUBJECT:  SPIRITS HIGH WITH ARRIVAL OF LOW COST CARRIER 
 
REF: A) STATE 83667, B) 04 KINGSTON 3385 
 
1.  On May 19, Emboffs attended an Airports Authority of 
Jamaica press conference announcing the planned launch of 
scheduled flights between the United States and Jamaica by 
Spirit Airlines, Inc. (ref A) Prior to the official start of 
the conference, Emboffs spoke with Guillermo "Bill" de la 
Torre Bueno, Director of Sales Programs and International 
Sales, and Marc Cavaliere, Vice President for Sales and 
Distribution. 
 
2. Bueno said that the prospects for Spirit looked very good 
in Jamaica, especially as they are the first low-cost 
carrier to enter the market.  His announcement of a USD 99 
fare from Fort Lauderdale to Jamaica (with flights to both 
Montego Bay and Kingston) elicited expressions of surprise 
and delight from the audience, since it is considerably less 
than the fares charged by Air Jamaica, American Airlines and 
other carriers currently serving the island.  Spirit 
Airlines will be making two flights daily to Sangster 
International Airport in Montego Bay and another two to 
Norman Manley in Kingston starting in November. 
 
 
3.  When asked if they planned to extend their low-fare 
service to the Eastern Caribbean, where Air Jamaica has 
recently announced the cancellation of its routes, Bueno 
replied that such matters were confidential.  During his 
presentation, Cavaliere stressed the idea that Spirit 
planned to bring in both business and leisure travelers, and 
that they expected to bring in a new demographic of 
visitors, rather than cannibalizing existing air travel 
customers from other airlines. 
 
4.  Comment:  Though the USD 99 fare was later qualified as 
being an "introductory, off-season" price and does not 
include airport taxes and other fees, it will likely remain 
significantly less expensive than the fares offered by 
Spirit's competitors.  Cavaliere appeared to understand the 
hurt pride tied up with Air Jamaica's financial woes (ref 
B), and his comments seemed designed to make it appear that 
Spirit would not be competing directly with Air Jamaica for 
customers.  The availability of significantly reduced fares 
on regularly scheduled Spirit flights may be yet another 
nail in struggling Air Jamaica's coffin, and Cavaliere was 
attempting to avoid giving the appearance of dancing on the 
national airline's grave.  End Comment. 
 
TIGHE