Embracing CARICOM à la the low-budget REDjet

Dennie Quill, Gleaner Columnist

It has come as no surprise that the Caribbean is now the target of a new budget airline. Cheap airfare is a liberating thing, and for that reason I have often bemoaned the fact that it was so very expensive to move around the region. And what's this about integrating the CARICOM family when it takes an entire day of travel from Jamaica to Guyana, almost the same time it takes to get to London from Kingston?

REDjet airline, based in Barbados, was scheduled to start its inaugural service this week to Port-of-Spain, Georgetown and Kingston. Passengers can expect to pay fares that are 60 per cent lower than the traditional service offered by local carriers. And I believe the operators when they say the response has been overwhelming. I envisage that for the first time a grandmother from Kingston may be able to get on a plane and travel to Port-of-Spain or Bridgetown to see her granddaughter graduate from university. And that's a great thing for as many people as possible to establish a Caribbean footprint. But beyond that, adequate and expanding air service is a prerequisite for future economic growth in the region. It will be a boost for small business and tourism alike.

no frills

At US$9.99, a one-way ticket on REDjet costs less than filling up one's car at the gas pump, and that is nothing to scoff at. Yes, there are taxes and other costs added on, but most major airlines are now charging for everything from snacks to seat assignments.

So what will be the fate of Caribbean Airlines/Air Jamaica in this new scenario? In the 1970s, two Americans decided to start a different kind of airline, dubbed 'no frills', where they offered cheaper fares than the established carriers. In 1971, Southwest Airlines took off from Dallas, Texas, with service to Houston and San Antonio, its attendants wearing khaki shorts and polo shirts and passengers having to buy earphones if they wanted to listen to music.

Three years later, Southwest, the granddaddy of low-cost flying, was celebrating its millionth passenger. The rest of the aviation industry took notice, and budget airlines sprang up all over Europe, with Ryanair being one of the most popular. Today, discount airlines are taking over the sky all over Europe, and from New Zealand to Brazil, with many of them being offspring of traditional airlines.

missing the opportunity

During that period, smart airlines began to reorganise themselves using the robust Southwest model, cutting hospitality, using online booking, instituting strict baggage allowance, operating on profitable routes, and unifying their fleets in order to be more efficient and save on training of maintenance crews. In some cases, lighter materials and less food were taken on board to save on fuel. But Caribbean Airlines and Air Jamaica continued in its old ways and missed the opportunity to redesign and revamp old strategies. Part of the reason was that there was little competition in the region. Since that time, we have seen Spirit and JetBlue enter the market, and they have provided fierce competition on some routes.

But money is the deciding factor. People will forgo the frills if they are assured that they will reach their destination on time, knowing that they paid a reasonable price for their tickets.

Frills-free travel may provide fewer guarantees in terms of insurance, and there is plenty of anecdotal evidence to indicate that these airlines can go bust and passengers be left stranded. Well, at US$9.99, what can one expect? In life, there are few guarantees, and there is a saying that 'you get what you pay for'.

Discount airlines are a phenomenon of the modern world. They are well overdue in the Caribbean.