Tuesday, June 24, 2014

REDjet admits to making mistakes

More than two years after REDjet ceased flying to Jamaica and other regional destinations, a former director of the airline has admitted that the carrier’s management made mistakes, but he insists that sabotage played a role in its demise.
While not calling names, Ralph “Bizzy” Williams charged that REDjet’s main competitor LIAT was allowed to get away with predatory pricing.
He added that aviation authorities in some countries put stumbling blocks in the way of the former Barbados-based airline that its collapse was inevitable.
REDjet first tried to set up operations in Jamaica but moved to Barbados after being denied permission by the Jamaican Government.
It lasted just under 12 months in the skies and ceased operations on March 16, 2012 after falling into deep financial trouble.
Predatory Pricing

Speaking at an Editors’ Forum at the Nation Publishing Company in Barbados, the former REDjet director revealed that the region was unlikely to get the private sector to fund the creation of another airline unless there were fundamental changes to the current structure. Mr. Williams said it was incumbent that regulations be established to prevent carriers from introducing predatory pricing as soon as a new competitor comes on the market.
In the meantime, the former REDjet director gave examples of some of the mistakes made by the airline.
He admitted that the management lacked enough experience in the airline industry.
Mr. Williams also expressed misgivings about the extremely low introductory rates that REDjet brought to the market.
He said instead of going with 9 dollars 99 cents it should have gone with 19 dollars 99 cents.


View the original article here



REDjet admits to making mistakes