Low-cost Caribbean airline REDjet denied reports yesterday that it planned to cut flights.
An internal memo quoted by one regional paper claimed REDjet was experiencing financial difficulties and that 56 flights would be taken out of operation to reduce costs.
However, Ian Burns, the chairman and CEO of REDjet, said no routes were being cut, although some are being altered to increase efficiency and "make space to create more routes".
"As part of the airline's continuing development and investment in its services, REDjet has made the commercial decision to make schedule changes over the coming weeks to some flights," the carrier said.
"Passengers can expect to benefit from new and more convenient flight times and from the launch of three new routes to two new destinations in time for Easter 2012."
REDjet suspects that word of the planned rescheduling led to the reports of the cuts, which have been feared by some who think the airline's low-fare model is unsustainable.
Calling itself the Caribbean's fastest-growing airline, REDjet said it plans to add seven to eight new routes this year.
"The improved flight times will better meet passenger needs. In addition, external factors such as traffic to and from the airport around flight times and capacity constraints at some airports around peak times of the day will be greatly improved."
The airline, which made its first flight to Jamaica in November, currently operates three aircraft that ply seven routes around the Caribbean.
"As part of the planned development of REDjet services, the airline has added a third MD-80 aircraft and has hired an additional group of experienced pilots who will complete their training and enter service later this month," the carrier said.
"These investments combined with the expansion of its call centre, maintenance department and operations team will enable the airline to comfortably deliver these new services and provide a safe and reliable operation for its passengers."
Passengers that are inconvenienced will be accommodated on alternative flights.
The airline has had its fair share of difficulties though. Its entries into several markets were delayed and the company has already gone through the cash set aside for operational expenditure.
In an interview with the Observer last year, REDjet's Barbados partner, the chairman of Williams Industries, Ralph Williams, said excessive delays and suffocating red tape had eaten away at the initial US$8 million ($686 million) which affected the airline's ability to meet its financial obligations and go after greater market shares.
"The money had to be used in all of the delays that took place while we were waiting for permission to fly. We had to use it to pay staff and keep things going though we were not flying. I am going to lose millions of dollars," Williams said.
At that time, Burns admitted that entering the Caribbean had been very difficult, largely due to bureaucracy. "Decision making throughout the Caribbean is unbelievably slow and people seem afraid to make decisions. This prolonged decision-making process causes frustration and heightens tensions and leads to the wasting of money," he said. "Obviously, decisions have to be considered and measured but it has to be much speedier than what currently pertains in the Caribbean. It should be a much more open and transparent process."
The Barbados-based airline is expected to obtain a license to go to Suriname by next month, having submitted an official request for landing rights.
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