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Friday, June 3, 2011

Redjet and Caribbean Airlines Feud.

Let me categorically state that I am in no way supporting either airline; I am simply stating what I discovered!

I was reading the news earlier this week and discovered that there is a feud between the new airline REDjet and the authorities in Jamaica and Trinidad and Tobago over the airline flying to these islands. From what was reported, a petition has been created by supporters of “the regional low-cost carrier”, REDjet to force the authorities in Jamaica and Trinidad to give the airline clearance to fly to those territories. The petition called the ‘Freedom of Caribbean Air Travel’ was created over the weekend, and had garnered a number of signatures from people all across the region, including Trinidad and Jamaica. According to Caribbean 360, the document addressed to the Governments of Jamaica and Trinidad and Tobago, appeals for an explanation of the REDjet delays.

I investigated to determine the answers to two burning questions plaguing my mind at the time:

(1).Whether REDjet was having cheap fares? and

(2).Whether the Governments of these two territories were really holding back on the airline’s clearance?

I visited the REDjet’s website and it immediately deepened my interest so I had to do some additional browsing to confirm that the figures I saw were accurate. They were! But, it depended on my destination, the embarkation point, the particular day of the week selected to depart, the time of departure and the length of stay. Interestingly, I recall flying to Barbados and Trinidad a few years ago and paid a ridiculously higher price than the highest prices offered by REDjet. How could this be possible?

Intrigued further, I went to the website of the Trinidad owned Caribbean Airlines to do a comparison and some extra browsing. I must admit that the prices there in comparison to REDjet were incredibly higher. As such I concluded that Politics and Monopolization were at work and ventured on to the Caribbean Airlines News link. This visit was all I needed to confirm my suspicions and conclusions. The headline read:

“CARIBBEAN AIRLINES / AIR JAMAICA DEAL FINALIZED"

27 May 2011, Piarco, Trinidad and Tobago W.I. - Days before the deadline for a notice of closure of the largest aviation merger in the Caribbean, Caribbean Airlines has finalized its acquisition of Air Jamaica. The deal was made official at the Office of the Prime Minister in St. Clair, Port-of-Spain, Trinidad. Minister of Finance, Winston Dookeran, and Jamaica's Finance Minister, Audley Shaw, signed the agreement which was witnessed by Prime Minister Kamla Persad-Bissessar, Attorney General Anand Ramlogan, and Works and Transport Minister, Jack Warner.

After reading the first paragraph I started to get the picture as to why REDjet was having difficulty with these two governments. The release added that the Government of Jamaica will now have a sixteen percent stake in the Trinidadian airline and a member appointed to the Caribbean Airlines Board of Directors. I personally think that the merger is good; however trying to shut another airline out is not in the interest the people of these islands, the people of the Caribbean in general, or people from around the world who may want to Island hop via this means.

I noted that the penultimate paragraph of the release ended with the line, “A truly Caribbean airline will now be of service to the Caribbean and its people”. As such, I investigated to determine who the owners of REDjet were. I found that REDjet is privately owned and may have an Irish connection. I am stunned by this situation! Does it really matter whether an airline is Caribbean owned or not? I can pinpoint numerous benefits to the Caribbean basin from a foreign airline taking to the skies, for example, increase in jobs, easy, frequent and inexpensive flying from island to island, tourism sectors reporting increase in revenue and most of all making traveling, spending and saving extremely easier for all concerned. And I’m sure they are additional benefits you can add.

What are your views on this situation?

Remember to visit www.caribbeanframes.com for this and more Caribbean information.

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