REDJet sees red

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REDJet sees red

Unread post by bimjim » Tue Jun 12, 2012,161582.html

REDJet sees red
Monday, June 11 2012

Low-cost airline REDJet last week announced that it had filed for bankruptcy and ceased all operations in Barbados, where it is based.

The company has been lobbying for support from the Barbados government.

In a release on March 16 announcing the end of service in TT, the then chief executive officer Ian Burns alluded to the subsidies which Caribbean Airlines and LIAT received and said REDJet was hoping to get “a small part of the state assistance others receive” to make its routes profitable.

CAL is subsidised by the TT government while LIAT has support from the governments of Barbados, Antigua and Barbuda and St Vincent and the Grenadines. REDJet has notified its 94 employees including pilots, ground staff, flight attendants that they could no longer be retained as staff.

A release issued by the company on Thursday last said, “REDJet believed it had secured the aero-political support of the Government and authorities in Barbados and had it gained access to all markets as a designated national carrier this turn of events could have been avoided. However, regrettably this has not been the experience in the past two years.”

The airline said there was no consensus at political or technical level to deliver on commitments so there can be no future in Barbados.

“Despite the best efforts of the airline and its committed staff, the airline has been forced to make the regrettable decision to suspend all its operations,” the release said.

REDJet has filed with the Supervisor of Insolvency a “Notice of Intention to Make a Proposal” to the company’s creditors under the Bankruptcy and Insolvency Act of Barbados. Upon filing all proceedings are stayed. REDJet said this will be in place for 30 days initially but the court will entertain reasonable applications for extension of the stay to permit a proposal to creditors to be completed.

“The trustee will at the appropriate time invite creditors of amounts $250 and more, including passengers who have purchased tickets with the airline but have yet to apply for a refund, to prove their debts as required by the Act and also call a meeting of creditors for the purpose of considering and approving the company’s proposal.”

REDJet’s operations were grounded in TT after almost eight months service. REDJet’s first flight between TT and Barbados was on July 28 last year. Its licence was revoked by the Civil Aviation Authority effective March 30 after the suspension of its Air Operators Certificate by the Barbados Civil Aviation Department ten days earlier. Under TT Civil Aviation regulations, a condition of being granted a provisional licence as a carrier is a valid AOC issued by a foreign authority.

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