REDjet
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REDjet
What does everyone think about the authorities in Barbados not allowing RD to operate to the "smaller islands" and as such protecting Liat, when they were so outspoken about CAL being protected by the Trinidadian and Jamaican governments.
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Didn't Redjet prior to opening tell the BGI government that they were not interested in flying regionally, but would be flying to "South and Central American markets" Maybe the gov't is just pi**ed off.
Anyway, selling seats in the region at $9.99 will sort them out (soon).
Anyway, selling seats in the region at $9.99 will sort them out (soon).
I think if you look at the reliability of their service to Guyana and Trinidad you would wonder if they were ready for for all the routes they intend to fly.
Good luck to them
Good luck to them
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Barbados doesn't exactly have a proud history of running airlines. I expect this latest start-up to run its course and shut down within a year and a half or so.
They've got problems keeping their aircraft airworthy and now the government is blocking their expansion to the smaller islands. Barbados getting downgraded to category 2 has prevented any hope of operating into the US.
Maybe giving them a year and a half is being too kind..........
They've got problems keeping their aircraft airworthy and now the government is blocking their expansion to the smaller islands. Barbados getting downgraded to category 2 has prevented any hope of operating into the US.
Maybe giving them a year and a half is being too kind..........
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Red
Redjet is not looking to have any competition in the future, they are performing in a predatory fashion which is pi_ _ ing off the Govt of BGI of which they had garnered full support from earlier. Redjet, you won't last too long with this attitude. Why fly those short hops with a big jet??? Be fair.
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competition/
I personally don't see what the big issue is to Liat. Liat runs a bus service, something Redjet cannot accomplish with jet aircraft. They may affect them ANU to GEO, BGI-GEO-BGI but on a whole, they have already tarnished their reputation and given themselves an uphill battle here on. Time will tell.
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Their reliability has improved a lot recently, they also have a third aircraft due at the beginning of December.
As for starting with a business plan and then adjusting it to survive, isnt that what most good businesses do?
As for starting with a business plan and then adjusting it to survive, isnt that what most good businesses do?
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It would seem that REDjet is in some serious financial trouble. They are in need of $8.0 million. 
Suspect captured -- NationNews Barbados -- Local, Regional and International News -- nationnews.com
Suspect captured -- NationNews Barbados -- Local, Regional and International News -- nationnews.com
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Redjet
Whenever there is a new entrant to a choked up, monopolised, poorly served market, such as the one Redjet is currently breaking into, there will always be armchair experts who don't see the bigger picture and talk only of failure.
Yes, Barbados has a poort track record when it comes to airline successes but take a look at how these companies were mismanaged and run into the ground. A lean loco cannot be compared to these.
There is a huge slice of the market that has been marginalised by the ridiculously high fares that were being charged on Liat / CAL. These airlines would be dead and buried long ago if they were operating in Europe/US or anywhere else in the developed world. Cronyism, corruption, mismanagement and idiotic unions are the order of the day, propped up by crazy ticket prices and government subsidies; these airlines are on life support and incapable of standing on their own. At some point someone may just have to switch off the machine.
It's a fact that when a lowcost airline enters a market where none has entered before, the first reaction is that prices go down. Competitors with higher cost bases immediately see their revenues fall off as the new entrant starts to take up more and more of the market they saw as theirs and theirs alone, so they must react by lowering their prices in turn. In addition to this and even more importantly, the new airline stimulates induced demand, allowing more people to fly, something that the existing high fare airline can never do.
On the subject of Redjet's competitors, one might question the logic of one basket case airline (CAL) taking over another basket case airline (Air Jamaica) but the geniuses who dreamed that brain-fart up did so solely with monopoly in mind. There is anecdotal evidence to suggest that the mini-basket case regional carrier, Liat, was next on their list. This would essentially have sealed off the entire regional market and kept consumers' choices limited, luckily that hasn't happened.
A new entrant comes along, one the incumbents know they must compete with, cannot ignore, and all of a sudden there are issues with traffic rights, safety etc It's the most common reaction when the established carriers are threatened to be knocked off their perches, especially in an awkward and difficult business environment like the Caribbean. To top it off, the above mentioned monopoly plan by Cal has more or less been sunk now and I wonder what is being said around the boardroom table about their recent Air Jamaica aquisition.
Every starting airline has teething problems with its punctuality and scheduling and no one ever gets it bang-on the first time around but I've seen the punctuality stats and they are excellent for a start-up airline finding it's feet in the market. The previous delays and cancellations are likely more to do with having just 2 aircraft and a few routes. If one aircraft is on maintainance then there is not much in the way of spare capacity to pick up the slack, the result then is typically long delays. These problems are easier to tackle as the route network and fleet grows.
The lowcost carrier model has been spreading all over the world for years and it will become established in the Caribbean also, you're no different to anywhere else!
My money is on Redjet being a long-lasting fixture on the Caribbean landscape.
D.O.G
Yes, Barbados has a poort track record when it comes to airline successes but take a look at how these companies were mismanaged and run into the ground. A lean loco cannot be compared to these.
There is a huge slice of the market that has been marginalised by the ridiculously high fares that were being charged on Liat / CAL. These airlines would be dead and buried long ago if they were operating in Europe/US or anywhere else in the developed world. Cronyism, corruption, mismanagement and idiotic unions are the order of the day, propped up by crazy ticket prices and government subsidies; these airlines are on life support and incapable of standing on their own. At some point someone may just have to switch off the machine.
It's a fact that when a lowcost airline enters a market where none has entered before, the first reaction is that prices go down. Competitors with higher cost bases immediately see their revenues fall off as the new entrant starts to take up more and more of the market they saw as theirs and theirs alone, so they must react by lowering their prices in turn. In addition to this and even more importantly, the new airline stimulates induced demand, allowing more people to fly, something that the existing high fare airline can never do.
On the subject of Redjet's competitors, one might question the logic of one basket case airline (CAL) taking over another basket case airline (Air Jamaica) but the geniuses who dreamed that brain-fart up did so solely with monopoly in mind. There is anecdotal evidence to suggest that the mini-basket case regional carrier, Liat, was next on their list. This would essentially have sealed off the entire regional market and kept consumers' choices limited, luckily that hasn't happened.
A new entrant comes along, one the incumbents know they must compete with, cannot ignore, and all of a sudden there are issues with traffic rights, safety etc It's the most common reaction when the established carriers are threatened to be knocked off their perches, especially in an awkward and difficult business environment like the Caribbean. To top it off, the above mentioned monopoly plan by Cal has more or less been sunk now and I wonder what is being said around the boardroom table about their recent Air Jamaica aquisition.
Every starting airline has teething problems with its punctuality and scheduling and no one ever gets it bang-on the first time around but I've seen the punctuality stats and they are excellent for a start-up airline finding it's feet in the market. The previous delays and cancellations are likely more to do with having just 2 aircraft and a few routes. If one aircraft is on maintainance then there is not much in the way of spare capacity to pick up the slack, the result then is typically long delays. These problems are easier to tackle as the route network and fleet grows.
The lowcost carrier model has been spreading all over the world for years and it will become established in the Caribbean also, you're no different to anywhere else!
My money is on Redjet being a long-lasting fixture on the Caribbean landscape.
D.O.G
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Firstly, let me say that I am personally all for change in the right direction.
From what I believe (my facts could be wrong you tell me pprune) as it was said early up in the forum, RedJet was supposed to fly medium range routes ( BGI - KIN etc.) that was the initial agreement was the Barbadian Government. RedJet knew at that point in time that the Barbadian Government gives full support to LIAT and that the Grantley Adams Airport was also downgraded to Cat 2. From a Government point of view; the game plan was to increase travel to and from BGI via RedJet and still allow BGI to be a hub for LIAT (technically a win win for both airlines and government). The problem arises with delays in the RedJet operations due to unforeseen circumstances and not being able to go to some U.S destinations (despite RJ said they were not interested as yet in the American market). If you live in the eastern Caribbean, you should know that SLU is one of the money wells for LIAT. As a government trying to please both sides this why there is this problem.
My personal solution to the problem:
RedJet: Simply consider other medium range routes. Honestly, a MD-82 to go to SLU from BGI which is 0.5 air time if so much lol, to me not worth it plus the aircraft is the wrong type for such a short route. On the business end ( I don't know) 150 pax at $20US profitable for a short flight? RJ can do routes like BGI-FPO, CUR -ANU, GEO- NAS just to name a few,
LIAT: Continue to restructure. Times are changing and to be competitive you need to change. As in one post; the airline can not continue to hide behind the three- headed beast (ANU, BGI & SVD). The whole function of a business is to make money .....it is not a hobby.
Barbadian Government: Open more gateways to other countries that other airlines can service. Quite frankly a Barbadian airline that created Barbadian jobs who bring people to Barbados; I am sure you could do better to aid the situation. However, no 8M bail outs.
However, I do wish that the airlines could coexist for the eastern Caribbean's sake. I think it is a nice ecosystem but everyone has to know their role in the system. On that count I am going to have myself another rum and coke.
Cheers
From what I believe (my facts could be wrong you tell me pprune) as it was said early up in the forum, RedJet was supposed to fly medium range routes ( BGI - KIN etc.) that was the initial agreement was the Barbadian Government. RedJet knew at that point in time that the Barbadian Government gives full support to LIAT and that the Grantley Adams Airport was also downgraded to Cat 2. From a Government point of view; the game plan was to increase travel to and from BGI via RedJet and still allow BGI to be a hub for LIAT (technically a win win for both airlines and government). The problem arises with delays in the RedJet operations due to unforeseen circumstances and not being able to go to some U.S destinations (despite RJ said they were not interested as yet in the American market). If you live in the eastern Caribbean, you should know that SLU is one of the money wells for LIAT. As a government trying to please both sides this why there is this problem.
My personal solution to the problem:
RedJet: Simply consider other medium range routes. Honestly, a MD-82 to go to SLU from BGI which is 0.5 air time if so much lol, to me not worth it plus the aircraft is the wrong type for such a short route. On the business end ( I don't know) 150 pax at $20US profitable for a short flight? RJ can do routes like BGI-FPO, CUR -ANU, GEO- NAS just to name a few,
LIAT: Continue to restructure. Times are changing and to be competitive you need to change. As in one post; the airline can not continue to hide behind the three- headed beast (ANU, BGI & SVD). The whole function of a business is to make money .....it is not a hobby.
Barbadian Government: Open more gateways to other countries that other airlines can service. Quite frankly a Barbadian airline that created Barbadian jobs who bring people to Barbados; I am sure you could do better to aid the situation. However, no 8M bail outs.
However, I do wish that the airlines could coexist for the eastern Caribbean's sake. I think it is a nice ecosystem but everyone has to know their role in the system. On that count I am going to have myself another rum and coke.
Cheers
