What Concessions Did REDjet Receive?

George Hutson, Minister of International Business and International Transport

David Ellis who has become VOB’s goto moderator since the demise of Tony Marshall shared some interesting information today [26/3/2012] to his midday audience. On the subject of REDjet many Barbadians were under the impression REDjet was being treated like a stepchild compared to other airlines who are suspected of receiving subsidies from government. However Ellis received feedback from a source which suggested the following:

To date REDjet has received the following concessions amongst other exemptions and benefits:

  • Exemption of corporation tax for 15 years
  • No personal tax for its expatriate employees
  • Waiver of import duties on aircraft spares
  • Waiver of taxes on lease of aircraft
  • No withholding tax on dividends or investment income
  • No withholding taxes on interest from shareholder loans

BU has to thank our email correspondent [JD] who ensures BU remains informed on most issues.

Bear in mind REDjet has been carping about creating a level playing field and the like. What the REDjet experience has exposed is that there is too much wheeling and dealing under a cloak of secrecy. There is absolutely no reason why information about concessions – announced by Ellis – should not have been in the public domain. Here is another example which reinforces the call for the Freedom of Information Act to be enacted with haste. It is taxpayers money and benefits being distributed through its servant, the government of Barbados.

If there is a time for a new order of business to take root, the time is now.

0 thoughts on “What Concessions Did REDjet Receive?

  1. “goto moderator since the demise of Tony Marshall …” Jesus H Christ which planet are you living on man …? And Ellis makes these claims, (ol’ Mr. Coward who believes that all information must be volunteered to the press and that there is no such thing as investigative journalism) and you David believes him …

    • @Hants

      Barbados is the largest shareholder government in LIAT


      What makes you draw the conclusion you have?

      Isn’t he the got moderator now that Marshall was jettison?

  2. To hear Bizzy Williams you would think Red Jet got no concessions not only that BU you are saying there were more exemptions and benefits.
    Well it appears the government gave Red Jet a wonderful head start.

    Its a shame the planes are grounded but based on the goodies BU revealed they got the government is not to blame.

  3. David

    Neither Ellis nor Marshall deserve your compliments. To be truthful there is NO such person in Barbados as a go to moderator and even if there were, both Ellis and Marshall would be at the back of the queue

  4. @BAFBFP | March 26, 2012 at 9:07 PM |

    The only ‘Ultimate ‘ moderator is Den(n) is Johnson; all the rest carry yellow stripes. You will agree, won’t you BAF?
    One wonders what more Redjet wants? For the Government to stop supporting its adopted child LIAT and hence jettison its survival? The minister, having been wined and dined in the Emerald Isle, has obviously lived up to his end of the bargain by ensuring the ‘sweet’ concessions were negotiated with the wheeling & dealing Saint Christopher of the underworld.

  5. I want to be fair on this….not that I don’t smell a rat..but what good are these concessions to a starting fledgeling Co. ?
    Any new company needs CASH..hard cash …these concession can only be utilized after 1 year or more …just being fair

  6. Really ole onions?

    I can’t tell you how much personal income tax I’ve paid already this year.

  7. @BAFBFP sometime one has to wonder what planet you are from and wha tis your motive. David Ellis is fair moderator in my opinion. he also bring the other side. unlike Marshall, he and Dennis do a great job at keeping the program balance. so what more could you ask for?

    @Carson C. Cadogan how is Burns the problem? Burns is a business man, he ask for (if he did) concessions and got them. the persons who approve them is the ones not to be trusted.

    here is the question which i believe should be asked, what game is Redjet’s management playing? they have grounded planes and still hiring staff. so what are they playing or who they playing?

  8. Look friend the excuse about keeping the program balanced just serves to create an environment that allows Ellis to expound, that’s all .. a chance to open he mout’ and give people the impression that he knowledgeable … which of course is yet to be proven

  9. “BAFBFP | March 26, 2012 at 10:14 PM |

    Look friend the excuse about keeping the program balanced just serves to create an environment that allows Ellis to expound, that’s all .. a chance to open he mout’ and give people the impression that he knowledgeable … which of course is yet to be proven”

    i can respect that view but for me, he keeps it balance and i don’t need to know anything else about him but that is just me but David from BU tells me that with that thinking is part of the problem.

  10. I vote for Dennis Johnson as the best moderator at VOB followed by David Ellis. Marshall was OK but not in Dennis Johnson’s and David Ellis’ class.

  11. during Owen Arthur’s time Simpson Motors, courtesy garage etc sent a signed letter to the PM asking that the duty be increased on reconditioned cars, from $120. to $1,200. they got their wish. Kyffin Simpson came out in the Sunday Sun and categorically denied it. the following sun, one of the small car dealers produced the letter with all the signatures. i say that to say this, Kyffin Simpson is too dishonest for my liking, he et al went all out to halt the small man from making a dollar just because they became a threat to he and other car dealers. They were successful. along with that only about 3 weeks ago, the same Kyffin Simspon and et al signed a letter requesting that government halt the importation of the disassemble cars. now he took his money to invest in Red Jet and liar that he is, gave people the impression that they were getting assistance from no one. i would like Barbados to have its own airline but since Simpson and Williams are a part of it, i hope it flops. they have no interest in seeing the man at the bottom rise above the water. he thinks he is still living in 1800s when one of the Slave laws was that the black man should NEVER have more the white another one was if land was valued at $1., the black was mandated to pay $10. for it. this ensured that the white prosper and the black continue to struggle. probably that’s how he and people like Williams got their inheritance, while their black workers got theirs too – which was none. i am sick of these crappy, swibbly white men, with no interest in anyone but themselves, i hope Red Jet stays where it is, Belly up.

  12. All these concessions and they still want an infusion of cash, looks like Corporate Welfare Bums are everywhere.

  13. Welfare/Concessions is how governments transfer wealth from the poor and middle class to the rich. It is done in the form of tax dollars, which might even involve some quid pro quo, hence the need for Integrity legislation. The poor, and especially the middle class pay all the taxes, whereas the rich form companies and seek concessions under the cloak that they are providing jobs etc.

    The rich allow their companies to buy whatever they need (cars, dinner etc) and then pay taxes, if any, but the government takes taxes from the other classes even before they receive their pay cheques.

    Nobody can cry that things brown like the rich.

    My question though is who is Ian Burns? The man appears from nowhere and wants our tax dollars. Wikipedia limits him to Redjet.

  14. The idea behind “REDjet is great but obviously fraught with all kinds of problems. Why can’t we have the ferry back instead? I wonder why…We keep asking ourselves whether LIAT or vested interests had anything to do with Windward’s demise.

  15. Smooth Chocolate | March 26, 2012 at 11:16 PM |

    Your beef therefore is with Owen Arthur, not with the White Shadows …!

  16. Redjet duped the government .Redjet only interest was self getting a license and a possiblity of flying into international markets all the talk about low fares was only a ploy. and the people fell for it 8 million is only the begining with no end in sight , let the doomed airline RIP.

  17. let the government put some more money into the agricultural industry . the farmers need subsidies in order to compete with foreign markets. this is an area the government need to focus on .

  18. ac you fell for it too. any person with the least modicum of commonsense would have seen redjet as a scam. redjet gave the public the impression that liat was thieving by introducing unsustainable low fares to appeal to the bargain seeking mentality of a public with champagne taste and mauby pockets. mr dumas from trinidad exposed redjet investors for what they are worth from the outset but because of our personal desires to access chepness we paid no heed but cursed those who tried to educate us on the impossibilities of redjet instead.

    • @balance

      Can you explain why you believe Bizzy williams and Kyffin Simpson would enter a venture [REDjet] to perpetrate a scam on the people?

  19. @ Guy Fawkes

    The more important question is who is he fronting for?

    @ David

    Do you believe it to be a scam and if so, why?

    Leaning the Treasury is a favourite pass time of some in Barbados.

    • @Pour Ouvrir

      The earlier question remains, why would Bizzy and Sir Kyffin enter a business to scam people?

  20. @ Smooth Choclate
    Your argument are truthful and worthy…but would these arguments presented be any different if there was no LIAT nor other airline to ply , nor ferry either and the SAME players introduce. RedJet to serve the Caribbean?

  21. I see yesterday some monies went to NGO’s with warnings of accountability ….good move, late charge….definite sign.

  22. RedJet is (was) a predator, pure and simple. Not for them the loss-making routes of ultra short haul within the islands. No – that can be left to LIAT. What they wanted was to cash in on the higher revenue routes at the expense of LIAT and CAL. On another thread on this subject, PhD laid out all that was wrong with this project and it doesn’t need repeating, other than to stress that a low fare airline has absolutely no chance in such a small and low density market. The owners of RedJet were flying a kite, always apparently safe in the knowledge that they could fall back on the taxpayer if necessary. Wrong!! At least, I hope so. For the Barbados government, the single largest shareholder in LIAT, to assist this predator to get back into the air would be no less than scandalous. The concessions outlined above don’t surprise me any more that the fact that a Minister who should know better, promised them traffic rights that were not within his purview to grant, apparently never having heard of bilateral air agreements. There’s only one thing that we should be saying to RedJet – Rest in Peace!

  23. peltdownman,

    Not quite sure I understand your logic here.
    Its OK for Goverments to operate predatory businesses them?

    Look at GEMS (Hotels and Resorts Ltd) as an example, who persistently sold rooms at below cost and played a pivotal role in the loss of up to 32 of our private sector hotels. What is the taxpayer left with? A debt of at least BDS$275 million. Imagine what that figure could have achieved if spent on cost-efffective creative marketing.

  24. @Guy Fawkes
    [The poor, and especially the middle class pay all the taxes, whereas the rich form companies and seek concessions under the cloak that they are providing jobs etc.The rich allow their companies to buy whatever they need (cars, dinner etc) and then pay taxes, if any, but the government takes taxes from the other classes even before they receive their pay cheques.
    Nobody can cry that things brown like the rich.]

    Bang on Fawkes .

    the moderator Denis Johnson’s know it all attitude is a turn off what are his accomplishments? I’m not talking about attending foolish calypso shows in Trinidad. To me he brings nothing but hot air and hollow bragging. Points are not made by shouting into a mic. VOb why not ask Ridley Greene to be a moderator he is well rounded on Barbadian hot button issues and has a track record of speaking his mind.

  25. VOB don’ want a’ pay people na’ money. They expect people to spend four hours (Practically a whole day) a day in dey fah a miserly $150.00. Rather than recognize the fact that there is such a thing as talent, they would rather use those who are already on the payroll instead of improving their offer to attract Mr Green or even me LOL. I tell Peter if he go back dey I ain’ got nuttin tah say tah he. At least the policy force Marshall off the airwaves ha ha ha … When ever mention is made of Marshall in front of Ellis (“wow if you saw those numbers “) the response now is one of typical Ellis scorn …ha ha ha ha .. Ellis (“As You Full Well Know”) showing scorn … ha ha ha ha ha

  26. If these waivers are true, then this government more generous than even I imagine. The principle of a free market is to allow these firms to stand or fall under their own steam. Taxpayers should not be asked to support them.
    How many jobs did they bring to Barbados, apart from cheaper travel, what benefits did REDJet bring to Barbados?
    Government must stop negotiating away the future of Barbados for bogus perceived gains.

  27. @It appears Gordon Butch Stewart may be after Almond Beach Village

    I hope he succeed … Look forward to nude sun bathing ’round the swimming pools … Bubbies galore yeh hah

  28. @Hal

    There is talk that REDjet created about 100 jobs. Bear in mind that this is a low budget model and technology was used as a key strategy in driving the business.

    The minister of tourism et al have confirmed that intra regional tourism is growing and is third on the list of source markets. There is talk that the numbers have increased from T&T.

    Maybe Adrian can weigh in.

  29. @balance fell for what any body could see that the airline was doomed from the start with low prices not even a bird would to so cheap to fly on with high fuel prices. BTW a barrel of oil has risen to 107 dollars.. lets invest in our own interest and build our manufacturing and expand our agriculture something that would benefit our people forget them pie in the sky dreams that rip off the taxpayers invest in our own people

  30. @ David

    There are so many things not being said that the obvious no longer is obvious. May I ask when did you or the Minister for that matter, realise that the Caribbean region was one of our top 3 source markets?
    Can you confirm that the Government has been preaching one thing on public intervention in private interests but its practices have been contradictory? I really do not know, maybe you and the writers on BU can inform me. Is there a wide disconnect between what Sinckler, Sealy, and Staurt are saying?

  31. In as much as i was against the airline the government in its haste to seek a resolution to pacify the flying public let logic fly out the window and replace logic with a political agenda of appeasing the public. a good and thorough back ground check Redjet would have reveal the obvious any how can people call this airline cheap when the taxpayers money would have to be used to lift redjet off the ground 8 mill. nothing cheap about that

  32. What if the backers of RedJet are major backers of political the parties …. wunna feel that anything wunna say here or further afield is going to effect the outcome of any decision that will eventually be made? Tax payers beware, the investors will get their money back with the well wishes of both Parties and all that will be left to be determined is if and how much individual Ministers will and have already received since this company opened. BTW the CEO came to Barbados with nothing more than an idea the money was put up by other people. His wife is a very pleasant ordinary type who will attest that he is just a creative individual and most certainly not a millionaire.

  33. David made a very valid point ..why is Redjet grounded but still hiring ?

    Do we believe such financial gurus as Williams and Simpson would start an airline and be bellied up in what 8 months ? What about their startup capital ?Maybe, just maybe this is their way of announcing ..buddy honeymoon over… prepare thyself for INCREASED PRICING….
    Study about it

  34. Old Onions

    I flew RedJet and one thing that I noticed is that the planes are very narrow. I can’ t’ink of nottin’ worse than sitting in a RedJet chair cramp up next to a bag ah Old Onions … ha ha ha ha

  35. David,

    Certainly REDjet was driving new and increased business within the Caribbean. Our problem as a destination is trying to maintain meaningful numbers at sensible rates for our accommodation providers during the eight long summer months. This is where intra Caribbean travel is so important.
    This summer we are already seeing a dramatic reduction in airlift. British Airways, Virgin, Air Canada already and almost certainly American Airlines will follow. It is going to be very difficult, some may say impossible to replace these seats from our traditional markets (UK, USA and Canada).
    The re-DISCOVER the Caribbean Show gave the BTA a ROI (Return on Investment) of 40:1, but they reduced support both in terms of finance and not even willing to ‘man’ a stand for two days.

  36. BAFBFP
    Years at the Crumpton St institution did you no good…you must see Ms.Redman for more English classes…Old Onion Bag…not Ole Bags of Onions…D brain being fruitful but multiplying the wrong tings..

  37. @BAFBFP
    I dug up this one for you ….interferer
    “Slanders, sir; for the satirical rogue says here that old men
    have grey beards, that their faces are wrinkled, their eyes purging
    thick amber and plum-tree gum, and that they have a plentiful
    lack of wit.”..take that to head…or call Observer..lol

  38. @David or Adrian
    Does intra regional travel and/or regional markets benefit other countries as much as it does Barbados??

  39. Observing,

    My instant reaction would be that it benefits most Caribbean territories but some more than others. St. Martin/St. Maarten might be a good example, as it is duty free, it probably attracts a higher percentage due to the value-for-money offerings.
    You can go through the CTO arrival figures and get an idea of the numbers and overall percentage that the Caribbean provides.

  40. old onion bags

    Ha ha ha … So then a bag that used ta contain old onions will smell different ta a bag that was made for onions but just was never used over the years … Interferer LOL , you beginning to sound like David and the late Desmond Bourne … hah ha ha

  41. Have you fear of ghost…or reincarnations ?Supposed the bags din used ? Man you put yourself on a sticky wicket .

  42. But Onions in my book a bag that does get use should never get old you know, after all if it ain’t getting used or never get used then it can really be a bag … get the drift …? ha ha ha 🙂

  43. But redjet jet should have started out with a decent price range rather than fooling people into believing that such a ridiculous price was sustanable. .but worse than that George Hudson should have seen a Red Flag! but one the other hand if a decision was not made to go with REDJet the repercussions from all would be that the govt. doesn,t care.however with all that is known the govt hands are untied and should not continue down this route in an attempt to save the charred remains of a doomed airline

  44. @ ac | March 27, 2012 at 1:00 PM |
    ” … but worse than that George Hudson should have seen a Red Flag! ..”

    Well, well, well! “My eyes have seen the glory of the coming of the Lord”!
    Ac actually has crossed the Rubicon of political integrity. But come on ac, how do you expect a blind man to see a Red Flag? No feelings or sympathy for the politically disabled? Don’t you think he George would make an ideal scapegoat to be put on the sacrificial chopping block just to prove what a powerful and decisive man Stuart is growing into? A man of action and not only big words and promises to make heads roll.
    This show of affirmative action might please you right ac? We are sure “Observer” would agree with you.

  45. Adrian, I have just seen your much earlier post. There was nothing that I posted that would imply that I agree with government practising predatory business. I repeat my assertion that RedJet was a predator, pure and simple, and if it had ended up putting LIAT out of business, as was its goal, then you ain’t seen nothing like the air afres that would follow. Remember deregulation of the airline industry in The U.S.? Predatory pricing reduced many airlines to just a few, in fact just 3 – American, United, and Delta. Check what crap service and high air fares are like there now. This is not at all what the “de-regulators” envisaged. Of course, new low-cost airlines have come on the scene, but look at the size of their markets. No way could RedJet succeed with predatory pricing in a small market like the Caribbean.

  46. Pingback: Moody’s Rating Unchanged For Barbados | Barbados Underground

    • Interesting article which apportions blame to Barbados for the demise of REDjet.

      Why the hell did we encourage REDjet to setup in Barbados if we were not bullish about the idea?

      What is the status of our plan to upgrade to CAT 1?

  47. David wrote “Why the hell did we encourage REDjet to setup in Barbados.”

    Rich businessmen have a sense of power and entitlement

  48. @ David

    I see your point, but it still seems a bit harsh to take away the licence because REDjet ran into financial difficulty, especially if it hadn’t breach the rules and regulations of the licence.

    I guess in the interest of safety these planes should undergo the inspection process again following the financial failure of the company.

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