UPDATED: REDjet denies rumours. Says route closures are about expansion
Ian Bourne has the story at The Bajan Reporter.
Too bad: but that’s what happens when the competition is government funded – and governments stand in your way to protect their own businesses.
The Nation is reporting that REDjet is cutting back 56 flights because the low-cost start-up is running out of money.
Local investor Ralph “Bizzy” Williams told The Nation that he and his Irish partners are unwilling to invest any further as they were “fed up with the way their investment had been treated by the Barbados government.“
Not the best advertisement in the world for Invest Barbados, fuh sur, but actually a common scenario. Many folks come into the Caribbean looking to start a business or even a hotel – only to later discover that the competition is funded by the deep pockets of government one way or another. That’s tough competition!
Remember the GEMS hotels were all heavily subsidized by government as is the current Barbados Hilton. I wonder how many of the recently closed hotels in Barbados might have survived without competition from government-owned businesses?
Perhaps REDjet could have made it on a level playing field, but there’s no such thing in the Caribbean.