Customers are already benefiting from healthy competition in response to RedJet’s fares

Dear Editor,

With regards to your recent reports on RedJet’s low fares (SN Apr 12, 13, 22, 24, etc.), Guyanese Americans are pleased that a low cost carrier is taking to the sky to meet the needs of Caribbean states and flyers and yes it will help to improve regional integration.  Those Guyanese Americans I have spoken with in recent days are hoping they will also someday become beneficiaries of low fares from the US.

Fares from North America are unaffordable and there is a shortage of seats to meet the growing demands and the reduction of carriers.  A few years ago, Guyana was services by five carriers from JFK.  There are only two today.

Every major nation and global region, save Latin America and Africa, have low cost no frill carriers that have been successfully running with sound business management.

I am glad RedJet is accommodating us in the Caribbean with very low fares although I think when the fuel surcharge, baggage fees, meals and taxes are added to the cost, tickets would be closer to US$200 than the US$10 being advertized for trips between CJIA and Grantley Adams or Piarco.

The hidden extras will still lead to cheaper fares than what is currently paid on other carriers. It costs, for example, over US$300 to fly between POS and GEO.

RedJet’s entry into the Caribbean zone will trigger a fare war that can only benefit travellers.  Already customers are benefiting from healthy competition. In response to RedJet’s US$10 fares, LIAT and CAL came out with their own low fares.

LIAT, for example, responded with a US$22 fare, Caribbean Airlines with a US$94 special to Trinidad from Barbados and US$144 to Kingston from POS.

I am quite familiar with how fares are structured and the sales gimmicks engaged in by carriers having travelled globally quite frequently. Whenever it is possible, I use low cost carriers especially for internal flights in India. I think when fuel and taxes are added to CAL’s Barbados fare of US$144, it will be around US$200 and the same for LIAT’s US$22.  And these are the lowest economy class of fares.  Other economy classes (using the same seats) are much higher.

But RedJet should be welcomed because without it, fares on other carriers would be much higher. However, RedJet’s plan to fly from POS hit a snag recently and it has not obtained clearance as yet to take to the sky although it announced May 15 as its debut date.

Trinidad’s government has talked tough about allowing RedJet to serve Trinidad.

But the TT government has no choice than to grant approval for the carrier to fly to and from Piarco.

Anyone who studies air routes will know that under current rules relating to reciprocity, a carrier cannot be denied landing rights that are below its quota.  So RedJet will get to fly to and from Barbados and Guyana into POS.

Competition is good for CAL.  And Caribbean Airlines which has dominated Caribbean routes linking the larger territories can effectively handle the competition.

The problem facing RedJet is if CAL responds with fares that are as low as its competitor. Can RedJet stay in the sky? RedJet had indicated it is also considering a North American route.

If the carrier goes through with this plan, it will bring much needed relief to passengers from North.

As do their brethren seeking to fly to Caribbean destinations, New York Guyanese anxiously look forward for competition and lower fares to their homeland.

And the same also holds true for Trinis who want to fly home from JFK and are paying muchmore than what they paid when competition existed from Delta, Travelspan and other carriers.

Yours faithfully,
Vishnu Bisram