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REDjet’s woes show unwillingness of Caribbean countries to liberalise

Analysis

REDjet's failure to execute a low-cost model in the Caribbean reflects the long-standing realities of governments in the region refusing to fully liberalise to allow any meaningful competition in the market.

The Barbados-based carrier began 2012 with ambitious plans to add up to eight new destinations and end the year with 14 points in its network potentially spanning the Caribbean, northern South America and possibly central America.

See related article: Lack of liberalisation in the Caribbean poses major roadblock to REDjet expansion

But REDjet's ambitions to establish a true Pan-Caribbean airline vanished less than a year after its launch as the carrier claimed subsidised carriers undercut its fares, which REDjet during the lead-up to its May-2011 debut claimed were 65% lower than what rivals were charging.

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