Business
Barbados PM willing to talk to officials of grounded REDJet
Grounded – REDJet
Barbados Prime Minister Freundel Stuart stays clear of guaranteeing any financial assistance to low-cost carrier REDjet, even as he prepares to hold talks with the airline’s owners.
After just 10 months in the skies, REDjet abruptly grounded its operations on March 16 citing financial problems. The owners have since called on caribbean community (CARICOM) governments to provide “a small part” of the state assistance given to other airlines.
“These are very challenging times and I will have to see whether in light of everything else that is happening, responding to REDjet’s request is practicable,” Stuart said in an interview with the Barbados Nation Newspaper.
Stuart, whose government is the majority shareholder in competing regional airline Leeward Islands Air Transport (LIAT), noted that REDjet’s contribution to intra-regional travel could not be underestimated. He however pointed out that other factors would have to be taken into consideration.
“I do not underestimate the kind of service that REDjet can render to the region. CARICOM is our third largest market for visitors; so certainly it’s in our interest within the region to have people moving, but at the same time you cannot fly in the face of financial reality, and we have to be circumspect.
“I’ll have to look at the whole picture,” Prime Minister Stuart said.
The Barbados leader disclosed that his administration held talks with REDjet officials prior to the suspension of the airline’s services. At that meeting, the airline highlighted its problems and revealed that it needed $8 million BBD (US$4 million) to operate efficiently.
CARICOM governments have not responded favourably to REDjet’s appeal for assistance. Antigua and Barbuda’s Civil Aviation Minister John Maginley said he was unaware that REDjet had written to any Caribbean government seeking any assistance. He told the Caribbean Media Corporation (CMC) it would be a business decision for each government.
Maginley also stressed that REDjet would have to make a compelling case to get regional governments assistance. St Lucia’s Tourism Minister Lorne Theophilius has suggested it was unlikely that regional governments would subsidize the low-budget carrier.
“I don’t think governments in the region would want to do that,” Theophilius told reporters He made it clear that if and when the Kenny Anthony administration agrees to invest in the regional aviation sector it would be done through LIAT “and that is where our allegiance should lie.” – (CMC)