Like thousands of people around the region, I share the excitement of impending competition and all the benefits hopefully it will bring to us with the launch of REDJET. Frankly, it could not come at a better time as we face the daunting prospect of near eight month softer summer season.
Our Government should be happy too, as if the majority of those seats transit or are purchased in Barbados they will collect up to a whopping BDS$15 million in ‘departure taxes’ and what could be another BDS$4.37 million in VAT.
Lots of discussion has taken place regarding the potential commercial damage to LIAT by REDJet, and clearly they will face some real competition on the Georgetown route. However, I would have thought LIAT faces a far greater threat from Caribbean Airlines, especially after the recent announcement that the carrier ‘has officially signed a contract for the purchase of nine (9) ATR 72-600 aircraft, valued at some US$200 million’ to replace its current fleet of five Dash-8 300’s. The European Turboprop manufacturer confirmed that first deliveries will start in October 2011. Whether these planes have been purchased on any preferential or subsidised financial terms is unsure.


















