Latest update March 28th, 2025 6:05 AM

Guyana's largest selling daily and New York's most popular weekly

Latest News

The Caribbean’s Unfriendly Skies

Jul 13, 2011 Editorial

Who would deny that we need a low-cost airline in the region? From the earliest days of Caribbean aviation, it was always practically cheaper to fly to London than to one of our Caricom neighbours. The only change since then is that London has been replaced by New York in the equation. It was not that we did not have local airlines but they never achieved consistent economic iability.
In the meantime, BWIA. Air Jamaica and Guyana Airways have all fallen from the skies and Caribbean Airlines (CAL), tethered to the T&T treasury, still remains focused on the glamorous (but cutthroat-competitive) metropolitan routes. LIAT promised much in the regional sector but, to be very kind; its performance has not been exactly stellar.  And, as with all monopoly scenarios, the prices to regional destinations remain stratospheric – especially for the average citizen of Guyana, locked as we are on a wage scale dwarfed by our cohorts in the Caribbean.
It was therefore not surprising that there was quite a flurry of excitement when a new airline, REDjet, announced its intention to ply the Caribbean skies – initially to and from Barbados, T&T, Jamaica and Guyana. The excitement became palpable when the operators revealed that they were going to pioneer the low-frill business model that had been introduced in several markets – both in the developed and developing worlds, with great success in bringing down fares dramatically.
Announced fares starting at US$10 one way to the stated destinations made eyes pop and tongues drool.     Even after reading the fine print that the fares were for the first 15% of seats and would increase by US$10 for succeeding tranches; governmental taxes were not included and food, drinks movies and checked-in luggage would all be charged, the fares were still a fraction of what prevails. After a couple months of service between Guyana and Barbados, the average return fare is a mere US$150 and this is certainly welcome news – both for the Guyanese traveller and for the beleaguered Barbadian tourism market.
But an unlikely spanner has been thrown into the works by the governments of T&T and Jamaica that threatens the viability of REDjet and ultimately the opportunity of Caribbean peoples to enjoy the benefits of competition. The fledgling airline had already begun advertising in the two countries under the expectation that as a registered Caricom airline majority-owned by Caricom citizens, its application would have been approved with alacrity under present Caricom conventions. Not so. The T&T and Jamaican governments raised safety and other arcane application procedural issues that fooled no one.
What was going on was outright protectionism and restraint in trade. The failed T&T airline BWIA had re-emerged as Caribbean Airlines (CAL), but was already beginning to show the effects of inefficiency and mismanagement. It absorbed the failed Jamaican Airlines in an effort to achieve economies of scale. These failed airlines are both government-owned and it is obvious that the latter fears the competition from REDjet. It matters not that in the long run, airlines the world over have to deal with competition as an integral aspect of increasing their efficiencies. It would appear that T&T is willing to keep dipping into its deep pockets just so that it can boast that it has a national carrier. It is being penny wise and pound foolish. Ultimately it is the citizens of T&T and Jamaica that are suffering.
President Jagdeo has very appropriately pointed out the contradictions in the position of the two fellow members of Caricom. Guyana is one of the most profitable routes for CAL, but because it has a practical monopoly of that route, it has consistently engaged in price gouging of the Guyanese public. We are of the view that Guyana should use all its influence within Caricom to ensure that justice for REDjet is meted out. It is our understanding that Barbados and Guyana are now members of a review team to inquire into the safety concerns, and we hope that the matters will be resolved quickly.

Similar Articles

The Glenn Lall Show|| March, 17th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Mice and Jermaine $1.7M Linden Futsal tournament starts tonight with three matches at Retrieve Hard Court

Mice and Jermaine $1.7M Linden Futsal tournament starts tonight with...

Mar 28, 2025

-Milerock face Bamia, Hi Stars battle Botafago, Ward Panthers match skills with Silver Shattas Kaieteur News- With a total $1.4M in cash at stake, thirteen clubs are listed to start their campaign as...
Read More
Slingerz FC hunt second win tonight

Slingerz FC hunt second win tonight

Mar 28, 2025

More sponsors on board ahead of Second Annual GGA/NSC National Long Drive Championship set for Saturday

More sponsors on board ahead of Second Annual...

Mar 28, 2025

LGC to host STP Investments Inc. Golf Tourney this Sunday 

LGC to host STP Investments Inc. Golf Tourney...

Mar 28, 2025

𝐓𝐒𝐔, Region 2 book semi-final spots as teams look towards the finale

𝐓𝐒𝐔, Region 2 book semi-final spots as...

Mar 27, 2025

World Athletics recognize AAG Elections

World Athletics recognize AAG Elections

Mar 27, 2025

Features/Columnists

Publisher’s Note

Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.

Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]