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EZJet Shuts down – Nov 9th 2012

EZJet Shuts down – Nov 9th 2012

The indicators were becoming more visible and the Government of Guyana today confirmed what was being whispered in the aviation circles for the past few weeks, that low cost carrier EZJet was in financial trouble and was ceasing its operations.

Transport Minister, Robeson Benn, at an early afternoon press conference announced, that the Guyana Government had suspended the license of EZJet. The Government’s move came after US Authorities informed the administration that the US Department of Transportation had suspended the airlines’ license that allowed EZJet to operate there. That US Suspension was done yesterday and the Guyana government was informed early this morning.

EZJet may have been taking off more than it could deal with on both sides of the Atlantic. The company is facing some serious financial turbulence and SWIFT AIR which leased EZJet one of its aircrafts to operate its service wasted no time to take its aircraft back.

The move by both the US and Guyana Governments effectively brought Ezjet back to the ground forcing the airline to stop its service. Benn said the Government was disappointed that yet another low fare carrier had failed.

EZJet launched its operations just over a year ago with flights between Guyana and New York. The airline expanded that service recently taking on the Trinidad and Canadian markets. But then it all went down hill when the Chief Executive Officer, Sonny Ramdeo, was slapped with a multi-million US dollar lawsuit, for the alleged embezzlement of millions of dollars from a US Health Care provider. Court documents claim that the money was channelled to EZJet and Ramdeo was forced to resign after that court action a few weeks back. Still, the company said, it was in good financial standing and appointed an acting CEO and launched a number of new travel packages. The Government of Guyana has in its possession a US$400,000 deposit that the company had made before it started its operations. That deposit is expected to be used to reimburse those passengers affected by the closure of the airline.

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