Why Is The (jutc) Losing Money When It Can’t Meet The Demand For Seats/

 

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The Jamaica Urban Transport Company (JUTC) in a release yesterday from it’s outgoing  managing director Colin Campbell said it had no problem with the management audit ordered by the minister of Transport Mike Henry.
Said Campbell : “Nothing is wrong with it. It’s a new team coming in and they would want to see the system that was employed by us, to see if we are doing things in the best way. A management audit is different from a financial audit — it’s just to examine the processes”.

Hum um , why not a financial audit?
If the company is bleeding money wouldn’t a financial audit be the way to go to determine the extent of the bleeding?
Why is there bleeding?
Then do a management audit to see whether the plans in place are effective (which they couldn’t be in light of the operational failures).
Then remedy that management failure?

jutc-buses

jutc-buses

It was just this week that the Minister Mike Henry said that the company was in urgent need of “government support”, and that the audit is aimed at identifying critical operational issues that are impacting efficiency.
No,no,no Mike Henry you go look at the money first not the people.
When you identify how much the company is losing ,then you look at the why.
After that trust me the “who” will fall into place.
Said Henry in his release, “the JUTC needs 305 new buses over the next two years to meet the demand for seats, but only 30 can be provided in this year’s budget”.

Jamaican Railway

Jamaican Railway …..

This makes me laugh !!!!
This is what happens when you have politicians running companies. The head of the board is the former Jamaica Labor Party Member of Parliament Gregory Mair. from North East Saint Catherine my neck of the woods.
The outgoing Managing Director is Colin Campbell a People’s National Party functionary.
You get the picture now ?
This is why Tax-payers money is always going down the tube, party political hacks running companies and heading boards.

Former Jamaica Omnibus Service, Buses

Former Jamaica Omnibus Service, Buses

Could this be the reason why the new Minister hasn’t ordered a financial audit which would be far more sensible ?
Could it be because they really don’t want to get to the truth as it is a cookie-jar for both parties much the same way Air Jamaica was which led to it’s demise?
If there is a demand for more seats which the company is incapable of filling why is the company losing money?
Secondly why are taxpayers expected to keep throwing good money at bad management ……………or worse?
If the company cannot meet the demand for seats how in heaven’s name is it loosing money?
The colossal mismanagement of the long defunct Jamaica OmniBus Service (JOS) should be a crash course in how to destroy a company . Yet it seem nothing has been learned from the failures of the (JOS) nor the Jamaica Railway Corporation.

Former Air-Jamaica airbus...

Former Air-Jamaica airbus…

As a small business owner I have to operate my business and make it profitable. I must meet operational expenses and turn a profit in order to stay in business .
If I am unable to do that I must fold the business as there is no Government bail-out > Why should taxpayers continue to fund these black holes which are private kitties for a lot of connected people?

Business is finding a need and filling that need, period..

 

Disregard every convoluted crap you ever heard and focus on that fact, it is demand which fuels supply, otherwise it’s the creation of goods and services which people are inclined to buy into.
If there is demand for bus service over and above what the company can provide yet the company is losing money the problem is incompetent leadership .
Or worse.
Part of management’s responsibility is to find funding source/s which allows the company to build out it’s service, of course with strategic growth and profit forecast which takes into account potential market hiccups.

Taking every single expenditure imaginable in operating an airline the bottom line result is thin profit margins even in the best of times. Airlines through the years, have earned a net profit between one and two percent according to (Airlineeconomics).
All things considered strict consideration must be given to how many persons are hired per airplane in the fleet, this  is critical. It is the difference between solvency and insolvency.
Can it be said that Air Jamaica was operated this way? I think not !
If the very same principle is applied to the former Railway corporation, the former Jamaica Omnibus Service and now the Jamaica Urban Transport Corporation, can the authorities see why these entities have been huge cauldrons of waste, loss and corruption?

Numbers do not lie, entities of this nature cannot be places where political patronage , nepotism and chicanery rule yet profit is expected.
The decision must be to operate as real business or let the people know that the JUTC will be just another  wasteful money pit like all of the other attempts at public transportation which preceded it.