Long delays in granting low-cost carrier REDjet permission to start flying to several destinations last year may have hurt the new airline’s potential for profit and might have contributed to its current financial situation, according to an international aviation think tank.
The Centre of Asia Pacific Aviation (CAPA) is suggesting that Caribbean governments must shoulder some of the blame for REDjet’s demise, given the delays that affected the carrier’s effective operation.
“REDjet’s failure to execute a low-cost model in the Caribbean reflects the longstanding realities of governments in the region refusing to fully liberalise to allow any meaningful competition in the market,” the Barbados Nation newspaper quotes the expert body as saying in its CAPA Leading Edge blog published on its website.
“Ultimately it seems REDjet’s optimism and ambition caved under the realities of operating in the Caribbean market . . . Now it is back to business as usual in the Caribbean – protectionist governments keeping a tight grip on traffic rights in order to protect their loss-making flag carriers,” it says further.
The Nation reports that Australia-based CAPA pointed a finger at Trinidad and Tobago which it said was highly protective of state-owned Caribbean Airlines (CAL) and that government’s subsidizing of CAL’s fuel costs, created “even more hurdles for viable competition in the region”.
That complaint is one that has also been articulated by regional airline Liat in relation to Port of Spain’s subsidizing of CAL.
Barbados suspended RedJet’s Air Operators’ Certificate (AOC) with effect March 20, four days after the airline suspended all flights to its nine destinations.
Trinidad’s revocation of its licence to fly to that country by the Trinidad and Tobago Civil Aviation Authority also dealt Redjet another serious blow, with the airline unlikely to be back in flight any time soon, according to observers in the aviation business.
RedJet had been a mere ten months in operation when the airline pulled the plug.
Government officials in Bridgetown do not appear to think that all is lost however.
A senior Barbados government minister said Monday that efforts are being made to have the low-cost carrier resume operations within a two -month period.
International Transport Minister George Hutson told the DAILY NATION newspaper that the Freundel Stuart administration is examining new strategies to get the airline back into the air.
“We are working on a solution . . . to give the airline a provisional licence under the act if they can have the airline up and running in 60 days,” Hutson said.
He said “the licence will also be valid for a year” and that the government is being cautious since it would not want to be seen as making “a big injection into REDjet without knowing what is likely to happen down the line”.
Red Jet has no intention of flying to Dominica. Red Jets Managers and staff are not helpfull and they do not accomodate when theyre late of cancel. They do not provide all the ammenities that LIAT gives. This is a warning. you end up paying alot for cheap travel including a fee for each bag you check in plus you buy your meals inflight.
STOP THE RUMOURS: LIAT BUILT TO LAST, NOT LIKE THE OTHERS.
Any sensible thinking person knows that there are two sides to a story … and then there is the truth. I will wait with my little two sense before i say anything other than … all governments around the world look for the interest of their own first and so i am not to quick to start blasting the region governments without the facts.
Liat ,vital what? nonesense , From Barbados to Dominica round trip cost $900.00. iTs cheaper to travel from the states to Antigua than to travel from antigua to Dominca . Any body who has done these routes will tell you . I think LIAT has become a bobo to the caribbean governemnts ,A few of them are just too shame to do the right thing. I dont even think they are benifiting personally , change is always hard thats all. Personally i think liat is one of the causes for our economic problems . Besides the fact that the governments have to regularly bail them out of debt their fares discourage people from visiting our islands (creole festival ) what if the fares were cheaper just imagine the influx of people to our festivals ,instant spillover effect. We need competition . Governments must start looking at the bigger picture and benefits of competition over that of monpoly.
It’s crazy to operate with cheap fares in the caribbean with an inflation of taxes, speak some sense, probably bus drivers in Dominica can tell you how expensive fuel is. Red Jet was preparing themselves for a heavy blow. They were were not financailly smart with the business.
RedJet should’ve formed an Alliance with LIAT and CAL and then the three carriers would work on a strategy to the Governments to lower their taxes.
and they say only in africa and the middle east governments supress their own!!
Who the hell is The Centre of Asia Pacific Aviation (CAPA) to tell the Caribbean Goverments how to manage aviation licensing in the Caribbean. The Governments have to look after the regions interests. LIAT with all its flaws has been vital to our economies and is no fly by night airline.
People like you still travel on a donkey so i don’t expect anything better from you. You need to start flying my friend before u start talking.
Preach it, they wouldnt want to hear it but its the gospel truth. Caribbean people are too bias when it comes to travel. Its like telling Astaphan that they should sell a 5LB bag of sugar for $1.00. What will happen to Astaphan if they were selling yes but not making a profit?
These Caribbean governments are purposely neglecting and throwing a blind eye in order to keep Liat as the mother ship. Why because these governments directly benefit from Liat, which is sensible and beneficial to them. But to us as customers and travellers it is totally and utterly unfair. Liat prices are preposterous!!!!! How can someone leave the US and pay much so much less for a flight to say, Antigua from NYC, and the connecting flight to Dominica is exceeding that price. It’s a half and hour flight but the price is just out the roof. We need to encourage competition and we as travellers will benefit.
Hello !! you talking about that flight, garcon LIAT charging me almost $900.00 to go to St. Lucia from Dominica which is just and island away… I self thanking GOD that there is express d isle. All this, like you said his the regional Governments faults..
Business as usual in the Caribbean.!! The article is correct. Govt protecting their interest ( their pockets) and not the interest of the people.