EZjet responds to Knews on Facebook

Mar 06, 2012 News

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…but ignores question on US$3M loss

EZjet Air Services Inc. is insisting that financing for the charter which has come from pockets of the Guyanese-born owner, is clean.
However, in a statement posted on Facebook, Sonny A. Ramdeo, the man who claims to own the airline stated, “The startup of EZjet is digging into the well-heeled and honestly earned pockets of its owner.”
Conservative estimates place the losses at US$1.5 million per month.
Questions had arisen over the source of financing for EZjet, with government recently denying that the airline company has any links with former President Bharrat Jagdeo and his best friend, Dr. Ranjisinghi ‘Bobby’ Ramroop.
On Sunday, based on a recorded interview with EZjet’s owner, Sonny A. Ramdeo, Kaieteur News carried a report in which other airline officials had questioned the viability of the charter.
Ramdeo himself had admitted that he is a full-time employee at a US health care company and that he has a US$348,000 mortgage on his Fort Lauderdale, Florida home. This was despite investing millions of US dollars into a venture considered one of the riskiest businesses on the face of the earth and which from the inception, according to figures, may have never been feasible in the first place.
Ramdeo, a Guyanese from Windsor Forest, West Coast Demerara, had also said it cost EZjet around $150,000 to operate the charter during a round trip between New York and Georgetown.
However, based on figures provided by Ramdeo, his company was only earning a little more than half of that.
According to those figures, which Kaieteur News has Ramdeo disclosing on tape, since its inaugural flight in mid-December, EZjet has lost around US$3M ($600M).
In his statement on Facebook, Ramdeo said, “Like all things, there is a limit to EZjet’s endeavour to well-serve the people of Guyana.” But he did say that he is here for the long haul.
On average in January, EZjet was carrying an average of 92 passengers one-way on its 218-seat plane. This meant that, on average, the plane was carrying 41 per cent of passengers in January.
On Sunday, EZjet issued a statement on the Kaieteur News article on its Facebook page, but never sent it to the newspaper. This publication was only alerted to this fact on Monday.
A statement was instead strangely carried yesterday in the Guyana Times, a newspaper owned by Ramroop and former President Jagdeo. The daily, privately-owned Stabroek News and state-owned Guyana Chonicle also did not carry the release, nor did any other media houses.
The Guyana Times report quoted Ramdeo, although the Facebook statement did not mention that official’s name. That statement was posted on the EZJet Facebook page.
The EZjet statement on Sunday did not address the fact that his company had lost around US$3M since its startup. Nor did he speak about feasibility of the venture, which under current market conditions and fuel prices is unlikely to make a profit.
EZjet is currently conducting five to six round trips weekly between the two destinations, according to the statement.
Officials in the airline industry said that they were surprised when EZjet was introduced into the local market with the current price structure. There was not much fanfare for the announcement.
“It is mind-boggling. Even if you own your own aircraft, it is difficult… Even if you put passengers on the wings, it would be unprofitable,” a senior airline official said.
“This is one of the riskiest businesses on the face of the earth. With fuel prices as it is on the high side, no one individual and a few persons would be willing to invest the kind of money that is needed for a charter like this.”
For the sake of clarity, Kaieteur News is publishing the statement of EZjet in its entirety.
EZjet refutes Kaieteur News Articles
For several weeks EZjet Air Services of Guyana has come under attack by the Kaieteur News about its ownership. Why this airline, that is only three months old, has suddenly attracted the attention of Kaieteur News, it cannot be determined. However, the airline wishes to set the records straight on its ownership and hope that the public at large would not allow itself to be misled by inaccuracies and untruths peddled by this media outlet.
EZjet is owned by an independent businessman, a dual Guyana and US citizen, who works in the private sector and wants Guyana to be served by its own airline, after years of being served by foreign airlines that fleeced Guyanese with high prices and less than desirable services.
The columnist wondered who could afford the start a new airline, offer low priced seats and keep going, while other airlines are having difficulties. Regarding the investment, there is no mystery to the large amount of capital needed to start a new airline, which must capture enough of its competitors’ market to survive. Even so, the airline strongly rejects Kaieteur News’ insinuation that it is funded by dishonest gains. A reckless statement like this is only intended to cause mischief for the airline. Kaieteur News can be sure that the startup of EZjet is digging into the well-heeled and honestly earned pockets of its owner.
Prior to the commencement of its local operations, EZjet at no time benefitted from any government concessions or favors. Experts were recruited to carry out market surveys and there was found to be a need for an airline whose services and prices were second to none and far better that what had prevailed in the market by other airlines. Had Kaieteur News taken the time to survey the local market, prior to EZjet’s arrival, it would have found the same. That EZjet is aptly able to do this is in support of the findings of this study.
Likewise, EZjet did not benefit from any favors from anyone, whether private or political, when seeking approval to operate. Like the other airlines, EZjet’ s officials stood in the line and waited on their turn to meet the relevant authorities and it followed the letter of the law in submitting documents and other requirements in order to be granted approval to operate the service. This was through hard work and determination, not by association to anyone.
It is rather incredulous that the columnist could claim knowledge of the company’s finances. But perhaps the lack of such knowledge is why he could make such spurious claims of the airline benefitting from cheap fuel and meals among other things. This is far from the truth. EZjet is not benefitting from cheap fuel and this is a fact that can be substantiated unlike the colorful concoctions of the columnist. In fact, the airline would be delighted if it is able to enjoy cheap fuel like some airlines are presently benefiting from.
EZjet was set up to serve all Guyanese equally and with a high end service that is unique and second to none. The airline is in service for the long term, and hopes to survive before hearing the clang at the bottom of its treasury; for like all things, there is a limit to EZjet’ s endeavor to well-serve the people of Guyana.
All EZjet of Guyana seeks is an ample following by Guyanese travellers and shippers, at a fair exchange … quality air service for a good price.
The statement does not address issues such as the fuel cost, or how he could sustain his operation with flights less than half full, or how, given the losses, he plans to expand his service to include Canada and the Caribbean countries of Trinidad and Barbados.

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