Gov't to subsidise new airline with direct flights to Miami!
In 2014 it abruptly ceased operations in the Virgin Islands and it was reported that the airline ran out of money, while leaving a few people surprised with the short lived operation.
However, upon our newsroom’s investigations, it was discovered that there was a change of ownership shortly before it ceased operations in late 2014.
This time, however, it is back holding high level discussions with Premier Dr The Honourable D. Orlando Smith, and Deputy Premier and Minister for Natural Resources and Labour Dr The Honourable Kedrick D. Pickering (D7) to resume operations.
Some of the same players who took over after the airline stopped operations in 2014 will be involved again, according to our newsroom’s National Democratic Party (NDP) senior sources close to the discussion at the Premier’s Office.
The airline will be back, it is reported, with the endorsement of the Government to start direct flights later this year from Terrance B. Lettsome International Airport to Miami, Florida, USA, which is a 3-hour flight.
It remains unclear if the airline company will maintain the same name of BVI Airways, as it is reported that when it went out of business in 2014 it allegedly owed monies for landing fees and other operation matters to the BVI Airports Authority.
It is reported that the airline will be using Avro type planes, a British made aircraft.
Subsidisy; Local involvement?
In order for the company to agree to return to the Virgin Islands, the tax payers will underwrite portions of the trip with heavy subsides, according to the same NDP sources close to the negotiations. The percentage of the subsidies was not immediately disclosed, as Premier Smith is expected to make an announcement as early as tomorrow January 12, 2016, according to the same source.
While there are speculations as to who locally is involved in the airline’s return, BVI Tourist Board Chairman Russel Harrigan has been the point person with the negotiations, according to the same senior NDP source.
Mr Harrigan’s involvement beyond the negotiations remains unknown at this time. It is still unclear whether there are any local shareholders or directors.
NDP for expat companies?
Many of the ferry companies have long called on Government to subsidise their operations between the VI and the USVI and have said it’s unfair for tax payers to underwrite a foreign airline and not do the same for local ferry operations.
Meanwhile, many critics of the airport runway expansion project have claimed that the project has been going forward in secrecy and lack transparency, which has become the way of doing business for the ruling Dr Smith’s four and a half year old NDP Administration.
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43 Responses to “Gov't to subsidise new airline with direct flights to Miami!”
It will still be cheaper for the masses to go down St. Thomas and fly out to Miami and elsewhere from there. More wastage of government funds to support a profitless venture, all whilst the youths especially remain unemployed and the government not doing much to diversify and grow this economy.
Instead of looking to pour monies down profitless things like the airport expansion ($300,000,000-$1,000,000,000) why not use some of that money to encourage diversification of the economy? boat /ship yacht building, lobby innovative tech companies to set up real operations here (not just paper presence), encourage renewable energy developers/manufacturers to come, etc.
Too many of the politicians and other people of power simply don't have the ingenuity necessary to take this country higher. They only know to think inside the box and so they are critically close minded.
But now they are being cut back. they charge by the piece of luggage, departure fees coming and going, and the round-trip charge is up to $70. All that is another $100 to the flight. I have friends and family members who cease to come because "it is too difficult to get to". Being forced to fly to East end then go West end to get your car is ridiculous.
Now we know where the some of money saved by the NHI tax is going.
Friends pockets.
1. Who owns the airline and the what is its history?
2. How will the subsidies be applied? Will the airline be given a flat sum? Will it be a sum to cover the cost of bringing paying passenger loading up to break even cost? Will it be a sum to cover the cost of bringing paying pasenenger loading up to break even cost plus a certain percent of profit ?
3. Will the BVI share in the contingent liability cost?
4. Will Speedy, Fast Ferry, Native Son, Smith Ferry and other ferry operators be also subsidized, and if no, why not?
5. Does the BVI have the Ground Support Equipment ( GSE) to support such a flight? Does it have the refueling facility to support such a flight? Plane will need to be as light as possible facilitate weight limit?
6. What will be the frequency of flights?
7. Will flights from Antigua and St. Martin also be subsidized?
8. Will other airlines that want to fly direct from Miami, NY, ATL also be subsidized? Or will the subsidizes only be for local airlines?
9. What is the estimated return on this investment?
2. Subsidies in airline are covered by a party base on the highest fare for seats that are not occupied.
4. The govt wont subsidize ferry operators because, more than one ferry operate doing the same service.
5. The airport has handling companies capable of GSE service.
6. Once the flight is market correctly base on GDS booking... and filling seats it will be frequent.
7. Subsidies are temp. why should govt subsidies flight that are existing already?
8. Then we need a longer run to answer that. Currently they are business jet that fly out of those airport that can land on our rwy lenght.
9. Base on fare shares i guess!
Caribbean destinations and go around Liat and its ridiculous partner in crime, Antigua. Shucks if the BVI were
somehow involved in that - I'd take the flight to Barbados just to have lunch.
This probably the cheapest investment i've ever seen government came across. 7mil and here all the nonsense behind it. Govt departments run that up is every year. I sorry but I for it I hate having to always travel to St. Thomas to go to the USA that sh*t should be a second option for me not first. These same tourist who comes in around the christmas season and go yachting can now come in through our airport and help our local taxi men, and vendors up terrance B. We forget how much money we have lost over the years to STT, USVI because of not having direct flights. If these prices are competitive and majority of the time can stay under $400 R/T its a great idea.