REDjet

REDjet’s woes show unwillingness of Caribbean countries to liberalise

REDjet’s failure to execute a low-cost model in the Caribbean reflects the long-standing realities of governments in the region refusing to fully liberalise to allow any meaningful competition in the market.

The Barbados-based carrier began 2012 with ambitious plans to add up to eight new destinations and end the year with 14 points in its network potentially spanning the Caribbean, northern South America and possibly central America.

See related article: Lack of liberalisation in the Caribbean poses major roadblock to REDjet expansion

But REDjet’s ambitions to establish a true Pan-Caribbean airline vanished less than a year after its launch as the carrier claimed subsidised carriers undercut its fares, which REDjet during the lead-up to its May-2011 debut claimed were 65% lower than what rivals were charging.

Lack of liberalisation in the Caribbean poses major roadblock to REDjet expansion

REDjet, the first and only Caribbean low-cost carrier, is aiming to pursue dramatic expansion in 2012 with up to eight new destinations. The ambitious and pioneering carrier, which launched services in May-2011, plans to add three destinations by early April, giving it a total of nine. The carrier aims to end the year with a network of up to 14 destinations throughout the Caribbean, northern South America and potentially Central America.

New LCC REDjet to launch operations in Caribbean

REDjet stated it plans to commence service on 08-May-2011, with services across the Caribbean, although some questions do remain over whether the carrier has the necessary approvals from the Trinidad and Tobago government to commence operations.