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Caribbean Airlines’ increased fare not coincidental – Dr Luncheon

Apr 30, 2011 News

Cabinet has noted that the further financial imposition by Caribbean Airlines on Guyanese travelers to Trinidad and Tobago is frustrating to the traveling public. This is according to Head of the Presidential Secretariat, Dr. Roger Luncheon.
At the time Dr Luncheon was addressing members of the media at his weekly press conference at Office of the President, Thursday.
Dr. Luncheon said that there were delays that the introductory low-cost regional airlines (REDjet) – already licensed in other Caribbean Community (CARICOM) countries – was experiencing. He said that the hardship in getting approval in the sister CARICOM country of Trinidad and Tobago was not coincidental.
Low-cost carrier REDjet is yet to receive official clearance from the Trinidad and Tobago Government, but its presence in the market has already triggered a price war and concerns that its model is unsustainable.
REDjet’s plan, however, hit a snag after Trinidad’s Minister of Transport and Works Jack Warner admitted that he was in the dark about the low-budget carrier’s ability to secure permission to operate in his country. Since then, the carrier has initiated efforts to safeguard its permission to fly there.
Dr. Luncheon said that the Ministry of Public Works and the Ministry of Tourism, Industry and Commerce have been engaging Caribbean Airlines on several occasions, but the results makes one wonder about the utility of the engagement
The Head of the Presidential Secretariat said that REDjet is a low-cost airline service already licensed and flying in Guyana, and were it to be given freedom to operate in other CARICOM countries, Cabinet feels that it would provide the kind of competition that would rein in the proclivity of Caribbean Airlines to impose the price escalations.
He said the recent increase in fares to US$450 essentially make the benefit of the engagement doubtful.

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