REDjet acquisition is a rumour – LIAT

St. John’s Antigua: LIAT has poured cold water on suggestions that it might be contemplating an acquisition of REDjet, the low-cost rival airline that suspended flights indefinitely last week due to financial problems, the Antigua Observer reported.

An aviation industry source, who asked not to be named, claimed to have information that the Antigua-based airline is considering buying REDjet, because LIAT has been unable to secure delivery of aircraft for its planned fleet renewal until 2015.

The Observer stated that he said apart from the French-made ATR planes – which LIAT does not want – the aircraft in which LIAT is interested won’t be available for the next three years.

According to the aviation specialist, the thinking is that it would be easier for LIAT to buy REDjet and thereby meet its needs for the time being.

However, when contacted, LIAT’s chief executive, Brian Challenger, dismissed the notion as a rumour, and said there is no truth to it.

Also, when contacted, REDjet’s co-founder and business development manager, Robbie Burns, asked to be excused, saying he was not at liberty to comment on any such matter at this time, the Observer reported.

In 2008, LIAT took over many of the assets of two rival airlines, Caribbean Star and Caribbean Sun, owned by the since-convicted former business tycoon Allen Stanford.

That deal included a transfer of the Caribbean Star aircraft leases to LIAT. Planes still bearing the former competitors branding are part of LIAT’s current fleet, the Observer report said.