Caribbean low-cost pioneer REDjet suspended all commercial operations this past weekend and grounded its fleet of aircraft, claiming that rival carriers that are subsidised by individual States have deliberately reduced air fares to force the budget carrier out of business. The airline ended all flight activities at 23:59 local times on March 16 only a week after it opened reservations for its two latest routes from Barbados to St Maarten (due to launch on May 19, 2012) and to Antigua (due to commence from June 6, 2012).
The airline has been relatively successful since it launched operation in May 2011 from Grantley Adams International Airport in Barbados to Georgetown, Guyana and it had subsequently expanded its network to cover six routes, most recently adding St Lucia to its route map in December 2011, adding to services to Antigua, Guyana, Jamaica and Trinidad.
According to a statement from the airline, these routes have “demonstrated the necessity and popularity for a low fares service in the region,” and their successful performance means the carrier would be “willing and able” to maintain air links. However, it says it simply cannot compete with State assisted rivals.
“We have seen other carriers drastically cut their fares in an effort to shut down REDjet and return to high fares and business as usual with no regard to the negative impact on travellers. Unlike us, they do not have to be profitable to stay in business,” the low-cost carrier claimed.
With passenger numbers still increasing this may not be the end for the low-cost venture. The airline indicates that if it is able to gain “a small part” of the State assistance others receive, it will enable the carrier to resume operations and launch its new flights as planned. “Once this happens, our shareholders and staff will do their utmost to see that there is no return to high fares and business as usual,” it added.
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