Business
REDjet expansion hampered by a lack of liberalization in the Caribbean aviation industry
REDjet, the first and only Caribbean low-cost carrier, is aiming to pursue dramatic expansion in 2012 with up to eight new destinations. The ambitious and pioneering carrier, which launched services in May 2011, plans to add three destinations by early April, giving it a total of nine. The carrier aims to end the year with a network of up to 14 destinations throughout the Caribbean, northern South America and potentially Central America.
While REDjet’s growth plans are impressive, it has to overcome several roadblocks as it continues to battle to secure authorizations for almost every new route. It has so far faced opposition in nearly every market it has entered, particularly in the early days with Trinidad and Tobago and Jamaica. The aviation market in the Caribbean region is small and stifled by outdated policies and protectionist governments, making the market difficult for any private carrier to operate in, particularly an LCC which threatens the long-term viability of inefficient flag carriers.
