REDjet’s Rescheduling Means New Plans

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03 February 2012 4:37pm
REDjet’s Rescheduling Means New Plans

Two things which have impacted negatively on the Caribbean’s first and only low-fare airline REDjet are now being remedied.

The first was a statement last November in the Barbados press, by one of its major shareholders, Ralph “Bizzy” Williams to the effect that the airline’s future was in jeopardy because it needed a cash injection of $8 million to continue its operations.

The second was the airline’s attempt to revamp its schedule to reflect more timely arrival and departure times at its various destinations, which was interpreted to mean cancellation of some 46 flights. Coming so soon after the “Bizzy” Williams’ statement, the airline, already plagued by bureaucratic red tape resulting in delays of one kind or another, has to put the entire issue in its proper perspective.

Speaking in Barbados last week, REDjet’s chief executive officer Ian Burns said, “I can assure you there is no issue between the investors.” And in Port-of-Spain last week, Robbie Burns, the airline’s Business Development Officer told Business Day, “Investors are coming up with their money.”

“Cash flow was never a problem; it was simply the investment climate across the region. Investors were in a wait and see mode,” he added.

The statement attributed to Williams, one of Barbados’ business tycoons, was the $8 million invested in REDjet for operating expenses in the initial months of the business had to be used otherwise and suggested the airline was in need of an injection of funds to fulfill its investors’ mandate to provide affordable transportation for Caribbean people.

CEO Burns said that statement was interpreted to mean REDjet was in financial difficulty. “This is not the situation,” he said. And he suggested the Williams’ statement might have been made out of sheer frustration as he (Williams) acknowledged the airline had faced continuous obstacles. These included delays by the Barbados government itself in granting necessary approvals. Trinidad and Tobago presented its own set of obstacles and the same can be said of the Jamaican regulatory authorities.

“In terms of the issue as to where REDjet is today, the airline has clearly demonstrated that we have made the investment and that we have moved beyond the comments of Mr. Williams,” Burns said.

Speaking to Business Day, Robbie Burns said since the Williams’ statement the airline had brought in its third aircraft (another MD-82), had invested in an upgrade of its maintenance facilities at Grantley Adams International, hired eight cockpit crew and has expanded its Bridgetown Call Centre by 200 percent , which requires the hiring of a further ten employees.

Divulging some more of the airline’s plans, Burns disclosed REDjet was just about ready to launch three new routes —Barbados — St Maarten; Barbados-Antigua and Barbados-Grenada — and there were pending applications for permission to fly those same destinations out of Trinidad and Jamaica.

He said while REDjet awaits approval to launch scheduled services to Panama, plans have already been completed to introduce charters to that Central American country for Easter (April) and during the July/August vacation period.

Burns pointed out since there was an existing air services agreement between Barbados and Panama, which was signed late last year, he figured this could play a major role in facilitating the launch of a Barbados-Panama service by mid-year.

Commenting on a news story emanating a few weeks ago in Jamaica about REDjet cancelling more than 50 flights, Burns vehemently denied this. He explained because of the additional routes being flown, there was need to make some adjustments in arrival and departure times in certain destinations.

REDjet is hoping the island governments begin to recognize the positive impact an airline such as REDjet can make in the Caribbean as regards the economy and tourism, the lifeblood of so many of the countries in the region.
 

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