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EZjet files in US to become full-fledged airline
– one step closer to become Guyana’s national flag carrier?
EZjet Airways, which currently operates low-cost charters between Guyana and North America,
has applied to the US for carrier status which will allow it to become a full-fledge airline.
Once these permits are granted, EZjet will be able to fly from any point in Guyana to any part of the US.
EZjet’s founder, Sonny Ramdeo
US records indicate that EZjet has requested a foreign air carrier permit to engage in “scheduled foreign air transportation of persons, property and mail between any point or points in Guyana and any point or points in the United States.”
With this permission, EZjet should be able to comfortably gain approval from the Guyana government as this country’s national flag carrier.
The future of the company which started flights to Guyana last December was thrown in question last week with news that its founder, Sonny Ramdeo, has been sued by Promise Healthcare and 11 of its hospitals for allegedly embezzling US$5.4 million and passing it through the accounts of EZjet.
Ramdeo late last week denied the accusations and instead said that Promise was attempting to cover its tracks and in fact its officials are in court facing charges over US$550M which was diverted. He nevertheless stepped down from his CEO’s role.
Over the weekend, EZjet’s newly appointed Chief Executive Officer (CEO), Rosalinda Rasul, insisted that all is well with EZjet and there has not been any drop in bookings.
According to an application filed at the US Department of Transportation (DOT) on September 6, EZjet wanted “Certificates of Public Convenience and Necessity and Foreign Air Carrier”.
Earlier, this year, a series of newspaper advertisements had pointed to EZjet’s plan to become Guyana’s flag carrier.
EZjet started its charter service from New York to Guyana in December 2011. It introduced Canada and Trinidad to its route. But there have been questions about EZJet’s ownership and the source of its financing.
Ramdeo, formerly of Windsor Forest, West Coast Demerara said that the company was financed from his mortgage, pension and stock options as well as private investors who were never named.
There have been speculations about the involvement of former President Jagdeo and his allies in EZjet’s financing. These speculations continued without any direct information on the company’s financiers. Over the weekend, EZjet admitted that there were other investors in addition to Ramdeo but declined to name them.
EZjet’s low prices also created speculation about the company’s long term aim since several charters in the past have closed shops after running into financial difficulties, with the more recent, notably one being Redjet.
Rosalinda Rasul
Ramdeo announced Friday that he has stepped down to clear his name following news of the alleged embezzlement. And, new CEO Rasul denied over the weekend that the company owed suppliers and other creditors and that she was still reporting to Ramdeo.
Reporting on the financial health of EZjet, Rasul said the company is doing well. “I would not say that we are on top of the world but we are paying our bills.”
Ramdeo said last week that he will be returning to the management fold of EZjet once he is vindicated.
According to the Court House News Service website, Ramdeo and his two companies – Ezjet and ‘PayServ Tax Inc.- were accused of stealing the money from Promise through a “sophisticated scheme of fraud and deception”.
“Specifically, Ramdeo incorporated a company called ‘PayServ Tax Inc.’ and deceived Promise’s senior management into believing that PayServ was a legitimate payroll tax processing company affiliated with the nationally known payroll processing company, Ceridian.
Based on this lie, he deceived Promise into transferring millions of dollars to PayServ Tax Inc. and diverted over five million dollars of Promise’s money to himself and his companies,” the complaint states.
Reports allege that Ramdeo forged signatures on standing transfer orders that purported to authorize Promise’s bank to debit funds from Promise’s account for transfer to PayServ’s account at PNC Bank.
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