Tag Archives: RedJet

REDjet provides tough lessons for foreign investors in the Caribbean

“REDjet might still have been flying if the Barbados Government had honoured financial commitments to the collapsed airline.”

Former Prime Minister Owen Arthur talks to The Nation about the DLP’s failure to honour its promises.

Owen Arthur chides DLP for breaking REDjet promises – conveniently forgets he did the same thing with other foreign investors

Submitted by One Who Knows

For a man who himself made false promises to major foreign investors just to entice them to Barbados, Owen Arthur has some nerve criticizing the DLP for their handling of REDjet.

Not that the DLP government is undeserving of criticism over the REDjet matter. The point is that both DLP and BLP governments have shown they will say and promise anything to a foreign investor: at least until the cash arrives. The promises aren’t always about money or tax breaks, sometimes they are about changing the laws to facilitate business or protection of the environment, or putting in roads and sewerage treatment to encourage development.

Unfortunately that long-established history of promising anything to potential investors but then failing to keep up the agreement is starting to cost Barbados credibility in the eyes of the world. Continue reading

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Filed under Aviation, Barbados, Business & Banking, Offshore Investments

REDjet and the silence of Caribbean Airways Ltd.

 

Merger of REDjet and Caribbean Airways Ltd. a viable solution!

by Leonard St. Hill

A mysterious silence surrounds the existence of Caribbean Airways Ltd. as the national airline of Barbados duly licensed but without planes to perform its function, while REDjet an airline duly incorporated in Barbados with planes to operate a national service is a first denied and delayed a licence to do so, and then deprived of financial support to complete the deficiency of Caribbean Airways Ltd. by merger or other lawful means to avert bankruptcy proceedings.

Receivership should not be regarded as inevitable liquidation proceedings; it should be for REDjet an opportunity for creative redemption where imagination is not lacking.

By a merger between Caribbean Airways Ltd. and REDjet as the national airline of Barbados with operating capital secured by diverting subsidies from foreign airlines now paid for airlift to Barbados hotels, the viability of the combination should be assured.

There can be no net loss attributable to the operation of a national airline of a country whose economy is almost totally dependent on tourism for its viability and whose owner is the ultimate beneficiary of income from nominated airfares i.e. fares lawfully fixed by the government of the national airline.

REDjet is entitled to the same guarantees even not “in extremes” that are assured Four Seasons and CLICO. It has prospects for generating a CARICOM AIRWAYS SYSTEM in collaboration with LIAT and Carribean Airlines Ltd. for a short, medium and long range operations, serviceable by existing aircraft of the partnership.

Leonard St. Hill
St. James, Barbados

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Filed under Aviation, Barbados, Barbados Tourism

REDjet officially dead, takes a chunk of Prime Minister Stuart’s credibility with it

Nonsense from the Prime Minister…

The Barbados Government “has not turned its back on REDjet”

Prime Minister Freundel Stuart speaking at a DLP meeting on Sunday, May 6, 2012

The Truth from Barbados Free Press…

“REDjet is dead, dead, dead – and it’s not coming back…

If the Prime Minister of Barbados is going to speak, please let him speak the common sense truth – and if he doesn’t, will the news media please call him on it?”

BFP’s Robert on Sunday, May 6, 2012 About REDjet: False hope and nonsense from PM Stuart

The Reality: REDjet declares bankruptcy on June 8, 2012

from The Nation Over for REDjet

FINANCIALLY TROUBLED airline REDjet has officially gone under.

A day after dismissing the remaining 94 employees, the carrier announced it had shut its Barbados operations and was filing for bankruptcy, blocking any legal proceedings by passengers and others owed by the airline.

“Airone Ventures Limited, doing business as REDjet, hereby announces the suspension of all operations in Barbados. REDjet profoundly regrets this decision and its impact on its suppliers, staff and passengers,” said a statement from the airline…

The last word from Ian Bourne and Bajan Reporter…

94 Barbadians unemployed, bravo George Hutson – REDjet officially dies

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Filed under Aviation, Barbados, Barbados Tourism

About REDjet: False hope and nonsense from PM Stuart

REDjet is dead, dead, dead – and it’s not coming back

by Robert

If the Prime Minister of Barbados is going to speak, please let him speak the common sense truth – and if he doesn’t, will the news media please call him on it?

On Sunday, PM Freundel Stuart (photo above) told a Democratic Labour Party meeting that the government “has not turned its back” on REDjet, and that the government would review the company’s books prior to making a decision about the airline.

This kind of ‘happy face’, deflecting statement is normal in Bajan politics to keep the PM or other big ups from having to say negative truths in public. It is a political strategy to keep the public from associating negative events with the leader. The problem is that the public becomes so used to hearing this kind of cow dung from our leadership that we too begin to accept it as ‘normal’.

It’s time we had leaders who just spoke the truth. Bajans can deal with the truth. We’re not children.

In the case of REDjet, everybody who has anything to do with Caribbean aviation knows that airline is dead, dead, dead. The airplanes are out of service (they were the wrong choice for the mission anyway), the ground and flight staffers are long gone and most important: whatever trust, goodwill and brand value that REDjet developed in its short life evaporated like a puddle of spilled Jet A fuel on a hot day. People are still waiting for refunds that will never come and they aren’t about to take another chance.

Killing the Vampire

The staff at the governments-owned Caribbean Airlines called REDjet a ‘vampire’ for sucking the passengers and cash from Caribbean Airlines in such troubled times. Now that REDjet lies in its grave, the surviving airlines are making sure that a couple of wooden stakes are pounded through its heart. They are determined that this phantom should never rise again. Trinidad & Tobago and Barbados revoked REDjet’s licences and after it ran into trouble and if the airline tries a return you can be sure that the company and staff will have to jump through all the hoops once again when it comes to licensing. It’s not going to be “Oh, you’re back. Here’s your papers.” That will be six months gone.

Unlike our Bajan babysitter, the Prime Minister of St. Vincent and the Grenadines told it like it is. Dr. Ralph Gonsalves said he had no intention of getting involved in the any action to save the REDjet, explaining, “REDjet is privately owned, Caribbean Airlines (CAL) is owned by the governments of Trinidad and Tobago and Jamaica, LIAT is owned by the governments of Antigua and Barbuda, Barbados and St Vincent and the Grenadines”.

REDjet is dead, dead, dead and Prime Minister Stuart should be saying that truth to Bajans and to foreign investors suckers seeking to revive the airline.

Any investors foolish enough to try to revive REDjet will be most disappointed because it always ends the same way when private business tries to compete with businesses run by the government.

Further Reading

The Nation – PM: Door not closed on REDjet

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Filed under Aviation, Barbados, Barbados Tourism, Politics

REDjet: What is happening with the funds collected from pre-paid tickets?

Where’s my refund?

by Thinking Aloud

First I do not want to say or even imply anything that may negatively influence the return of REDjet, but I am surprised that no-one so far has seized on some of the financial implications.

A very high proportion of any monies collected for planned future travel that has not yet been refunded, is in fact due to Government(s) and their agencies: whether they are departure taxes, VAT, landing fees or other airport charges.

Should the company NOT be in a position to refund, then those passengers who paid by credit card could be protected. I am not sure of the legal position regarding Surepay payments, but at the end of the day any advance payments will be largely made up of what would be Government dues, if travel had taken place.

It is also not clear whether REDjet have so far paid all its statutory obligations, such as VAT, landing fees, departures and other taxes for people that have already traveled.

Questions MUST be asked!

I think these questions have to be raised to establish if in fact further taxpayers funds should be placed in the airline.

Thinking aloud

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Filed under Aviation, Barbados, Barbados Tourism

REDjet collapses due to government hostility, airfare prices soar: Tourism Minister Sealy’s tears

Ever see the movie “The St. Valentine’s Day Massacre” ?

There is a scene at the funeral of one of the murdered mobsters where the camera focuses on a huge flower arrangement that says “From Al”… as in Al Capone – the guy who arranged the murders.

Flash-forward…

REDjet down, fares up

Minister of Tourism Richard Sealy

Airline prices have “gone right back up in the air” with the grounding of REDjet, says Minister of Tourism Richard Sealy.

And he has warned that the true potential of regional tourism, especially the event-based niche, will only be realised through viable travel options for those in the Caribbean.

He stressed that facilitating intra-regional travel was imperative for the industry… (snip)

… Directly addressing REDjet airline’s suspension of flights since March 17, the minister said “… the cost of travel in this region is simply prohibitive. I am told that there are some discussions on with respect to other players and we may be able to get some specials around the Reggae Festival. Certainly the resources of the Barbados Tourism Authority will be working feverishly behind that effort.

“Obviously, with the demise of REDjet, and the way the fares have gone right back up in the air, it is a big problem. I sincerely hope that once and for all we can come up with a meaningful, long-term resolution for that situation… I sincerely hope that something can be done to get REDjet back up in the air; and if in the unfortunate case REDjet flies no more, I would sincerely hope that another venture along those lines can come into reality very soon so that the consumers of Barbados, and the rest of the Caribbean can benefit,” Sealy stressed.

Read the entire verbal diarrhea from Minister Sealy at Barbados Today: REDjet down, fares up

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REDjet debacle shows CARICOM is a sham

“What has been dished out to RedJet is shameful. I bow my head in that shame. I truly now know that CARICOM is but a sham and obviously just a ploy for Heads of our nations to get together and feed their egos.”

by Rosemary Parkinson

The reception that RedJet has received from our so-called- unified-by-CARICOM governments has been to say the least based on protectionism for LIAT and Caribbean Airlines. RedJet were doomed to fail if Caricom Heads did not put the necessary openings in place. The Barbados government was also a tad unhurried in getting RedJet the necessary support and I am not talking investment. There was no need at the time for this – those behind RedJet saw a niche, did their homework and were well-prepared to give the people a low-cost airline. This is where I smell a rat because these businessmen would not have gone through with their plans had they not been given certain assurances…by certain people…or at least that is my belief. I could be wrong, this could be an assumption.

We the people, however, embraced RedJet, welcoming this opportunity for the Caribbean region to be more integrated. Vendors could now move back and forth and make a living. Artistes from all areas of the creative arts had an opportunity to truly know our neighbours and earn extra dollars. Families and friends could now travel easily. Regional tourism had been finally given the push it required. Regional business at all levels could now afford visits to their partners rather than just telephone meetings. Most importantly RedJet gave an opportunity for food and goods to be moved between the islands – a huge plus for us the people as we sought to reduce our import bills from the north.

RedJet was people friendly and had one and only one vision…to give the people (I said the people) of the Caribbean an airline that cared cost-wise. Naturally making ends meet and profit would have also been a priority. But digging out the eyes of their own people was not. Continue reading

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Filed under Aviation, Barbados, CARICOM