Business
RedJet attains 20 percent of market share in 10 months
The launch of ticket sales for REDjet’s newest route, St Maarten, in Barbados last week gave an airline official a chance to once again voice his concern about an as yet unexplained tax added to fares published by Trinidad and Tobago’s Caribbean Airlines (CAL).
Robbie Burns, REDjet’s Business Development Officer had accused CAL a few weeks ago of imposing a US$18 Carrier Imposed Insurance Surcharge without advising prospective travellers about it.
CAL in an almost immediate response defended itself, quoting relevant sections of Consumer law and stated, “Caribbean Airlines conforms to the law by stating exactly what the consumer pays. Now REDjet is advertising exclusive of all taxes and is further deceiving customers by advertising fares at US$5.99.” CAL stated that it had lodged a formal complaint to the authorities, but, “have not seen enforcement of the law on REDjet for deceptive advertising practices.
Commenting on the issue at the weekend, a regional aviation consultant said, “The mandatory insurance surcharge is CAL’s. I noticed it on Monday when booking a ticket to Grenada. Don’t know what it is. I noted that on that trip I did Port-of-Spain-Grenada on CAL and Grenada Port-of-Spain on Leeward Islands Air Transport (LIAT) and the total cost to me on each leg was about the same. Not sure if CAL’s insurance surcharge is the equivalent of LIAT’s fuel surcharge.”
A Canadian aviation lawyer said a CAL fuel charge would be a novelty, given that its fuel cost has been US$1.50 a gallon from inception. Mandatory insurance! What next? He exclaimed.
REDjet’s Chairman and CEO, Ian Burns said, “We are truly excited to launch our St Maarten service. It marks a significant step for us, our first route launch in 2012, on the heels of a very successful 2011, which saw REDjet flying to six destinations in a mere nine months.”
He further stated that his airline’s entry into this market “will also facilitate a cross-cultural exchange, with St Maarten offering the most European flair of all destinations. Service to St Maarten will begin on Saturday May 19. Flights will operate on Tuesdays and Saturdays.
REDjet, the Caribbean’s first and only Low Fares Airline (LFA), inspite of the many obstacles it encountered as it moved to get off the ground last year, has described its performance as “fantastic”, according to press reports coming out of Barbados.
During a press briefing in Bridgetown last week to mark the launch of ticket sales to its newest destination, St Maarten, the airline Business Development Officer, Robbie Burns boasted, “It was a fantastic year”. He added that the many challenges faced by REDjet in launching this revolutionary product in the Caribbean, failed to thwart the airline’s thrust. “We achieved 20 percent of the market share in the first six months of operation and that can only be described as a “fantastic achievement.”
Ian Burns, speaking at the same function, said that Caribbean governments were finally beginning to recognize the value of an LFA operating in the region. He reminded his audience of what he had said when the airline was launched.
“We said, we would work with stakeholders in the region and try to understand their what their issues are and see that they are addressed. That is what we said we would do to ensure that REDjet is going to bring substantial benefits to those countries,” added Burns.
Burns said the LFA model was working and the sales tell the story. What it also showed according to Burns were the major benefits that was being accrued to Barbados, it being the center point of our root network and our home base.
He also indicated that it was never the intention of REDjet, because of its low fares policy, to “monopolize the market”. He further explained that competition in any market increased efficiency and profitability and added he would like to see more airlines flying the Caribbean skies.
“REDjet’s policy to aviation in the region is that there should be an open skies policy in every country in the region on a Caribbean Community (CARICOM) integrated basis and that is to the REDjet policy and that is anything but monopolistic, or trying to drive anybody out. We are trying to grow markets,” chairman Burns added.
Robbie Burns took the opportunity to air his concern about the high taxes being placed on regional carriers. “The cost of the tax is higher than the ticket.” He said there was something wrong with this situation. He said while he understood that the high taxes are aimed at the long haul passengers, it was preventing inter-regional travel from building and strengthening regional economies.
Source: NewsDay