Why It’s Unlikely Barbados Will Subsidise REDjet

There may still be hope for the embattled airline REDjet as Barbadian Prime Minister, Freundel Stuart, indicated that he is prepared to meet with the airline’s executive to discuss its future. The Million Dollar MoneyMax Question is: Why did he take so long?

Check the timeline. REDjet made its horrible decision to  suspend all flights way back on the 16th of March – almost a decade ago in business. The airline is still maintaining all its grounded airplanes, staff, offices and the works. Why is the head of the Barbadian government just now signalling a willingness to meet – not even setting a definite date?

It may be, like The Economist stated in an article last Friday, that governmental support for REDjet “seems unlikely to come.”

That view is further strengthened by Stuart’s express warning that his willingness to meet with REDjet ought not to be construed as an indication of that his government intends to actually commit to subsidizing the airline.

“These are very challenging times and I will have to see whether, in light of everything else that is happening, responding to REDjet’s request is practicable,” said Stuart, in response to an appeal made by the cash-strapped carrier for it to be given “a small part” of the state assistance that other competing airlines receive.

Frankly, the pace and language the Barbadian government has chosen to respond to the REDjet crisis signify a sort of disinterest in the survival of the company – or at least, an unwillingness to be its savior. You don’t wait a full week just to indicate a willingness to meet with a dying business you care to sustain.

Is there hope for REDjet? Well, we will all have to wait and see.

This entry was posted in Business Investments, Business Strategy. Bookmark the permalink.