REDjet has brought to the Caribbean a business model which has left its competitors which include some governments in the region in envy following its disclosure that it will be offering fares beginning as low as US$9.99 between four territories initially. Territories which will be serviced by the carrier in its first instance include Barbados, Trindad, Guyana and Jamaica.
Is this a plot by the REDjet airline to destroy its competitors, as it will be impossible to compete as such low fares? REDjet could not possibly operate at such low fares for any long period, unless its investors were willing to sustain losses until its competitors were to go belly-up, and then later reap profits as it saw fit, but is this the case with REDjet?
Flights on the low-cost carrier starting at US$9.99 are expected to be the cost of the seat alone, and passengers are expected to be hit by other surcharges, which will see to it that the airline makes a profit. REDjet has borrowed its business model from airline operators operating under Ryanair and Easyjet.
The companies in Europe have been expanding rapidly and have been surviving because of surcharges they charge along with the initial quoted cost of the flight, which has fuelled many complaints. The European Union (EU) has considered bringing in a 'one flight, one price' rule for such airline companies, because there might be significant surcharges on top the advertised flight.
Some of these surcharges on Easyjet and Ryanair, include a charge extra for checking in baggage, paying with a credit or debit card, and booking seats. The complaint is being pursued by Labour MEP Brian Simpson, who is chairman of the EU transport committee, and consumer watchdog.
"Flyers are being ripped off by an endless list of charges that airlines add to the prices they advertise. I am calling for the European Commission to look at how passengers are being misled and how it can force airlines to be more transparent in showing holidaymakers exactly what they're buying," said Mr Simpson.
REDjet which also follows this European model will also make some similar surcharges on REDjetters (those flying REDjet) in order to make viable sense, but will this practice be unfair to passengers who would have been quoted a low-fare in the first instance , to later find that they will be pulling from their pockets for much more than they had expected?
Despite the surcharges a flight on Redjet will be cheaper than the cost of its competitors if one spends wisely.
|
|
|
|
|
|
Leave a Comment
From this long article of nonsense gop is clearly not a journalist who can be believed. It is also clear that no research has been carried out.
Like MANY LCC carriers, there are ab few $9.99 seats on every flight, and the price goes up from there - the fuller the aircraft, the closer to departure date, the more "non-essentials" like baggage and seat selection, day of the week, etc., etc., etc.
No carrier could survive as long as a month on $9.99 for every seat, even if all of the flights were full - which brings a strong sense of naivete to this reporter.
Get real, gop, and do your homework. This article is pure rubbish, and casts a dark cloud over every other word you have written - and will ever write.
No frills airline Ryanair said its profit rose 26 per cent in the year to March but was cautious about prospects for future growth.
The airline's profit for the year was €401 million, compared to €319 million the previous year.
Revenue gained 21 per cent to €3.63 billion, fuelled by rising airfares, which were 12 per cent higher than the same period a year earlier. Sector length increased by 10 per cent in the period, Ryanair said.
Traffic rose 8 per cent in the same period, with the airline carrying 72 million passengers.
However the airline said it was facing challenges from rising costs, with oil prices and increased airport operator charges the main contributors. Fuel costs were up 37 per cent compared to the previous year, reaching €1.2 billion. When fuel was excluded, unit costs were only up 3 per cent.
You need to do your research before going to press. So much of this article is wromg information.