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Redjet owes Guyana millions

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Redjet owes Guyana millions

Unread post by bimjim » Wed Jun 13, 2012

http://www.capitolnewsonline.com/2012/0 ... -millions/

Redjet owes Guyana millions
12 June, 2012

Just one year after it began its operations with an inaugural flight from Bridgetown to Georgetown, low cost regional carrier, Red Jet is no more and the company may be facing bigger problems even with its operations shut down. Red Jet owes the Cheddi Jagan a substantial amount of money, believed to be in the millions of Guyana dollars, for landing and other fees. It’s now unclear how the airport will be able to get its money.

Over in Barbados which served as the home of Red Jet, more controversy is brewing as there was a move to the court to block the removal of the red jet airplanes from the island.

Barbados’ Grantley Adams Airport Authority moved to the courts over the weekend and obtained an injunction which blocked red jet from flying its aircraft out.

Red Jet was getting ready after its closure to fly out its jets to the US and sell them there, promising that the money would then be used to settle debts and repay affected passengers. The airport authority was not buying that promise and quickly moved to the courts to block the carrier from removing its planes from the island. That poses a big problem for Red Jet since the airline’s pilots were employed up until today.

Late Friday Red Jet announced that it has filed for bankruptcy, shutting down its operations completely. That move came 3 months after the company suspended its operations and made several failed efforts to convince some regional governments that they should invest in the airline.

By the end of May, it became clearer to the Red Jet managers that a shutdown was imminent as regional governments shied away from offering any help to the cash strapped carrier.

Many passengers across the region are furious as many of them never got their money back for flights that were cancelled by the airline. Guyanese passengers who bought their tickets in Guyana however were given the opportunity to apply to the Ministry of Works for a refund as that Ministry prepared to tap into the bond that the airline was required to lodge with the Guyana government when it started operations.

Red Jet began almost daily flights between Guyana and Barbados and quickly moved to bring in other markets including Trinidad, Antigua and Jamaica. That was when its troubles began and despite the airline’s best efforts to fight back at reports that it was facing financial problems, those reports were proven true when the suspension of service was announced and its plans for a new take off were all grounded.

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