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Seaborne subsidy cost gov’t approx $450k - Premier

- airline was paid $100 for empty seats; agreement prompted by untenable situation
Seaborne was given a seat guarantee of $100 per empty seat into Virgin Gorda during the period. Photo: VINO/File
The agreement between the Government of the Virgin Islands and Seaborne airlines to conduct daily flights to Virgin Gorda was prompted by an
The agreement between the Government of the Virgin Islands and Seaborne airlines to conduct daily flights to Virgin Gorda was prompted by an "untenable situation" and cost the government approximately $450,000 over a one year period, according to Premier Dr The Hon. D. Orlando Smith. Photo: VINO/File
Premier Smith confirmed that an agreement was reached with Seaborne airline to start daily flights into Virgin Gorda where the situation had been one of crisis. Above: VG airport. Photo: saildivebvi
Premier Smith confirmed that an agreement was reached with Seaborne airline to start daily flights into Virgin Gorda where the situation had been one of crisis. Above: VG airport. Photo: saildivebvi
ROAD TOWN, Tortola, VI – An agreement between the Government of the Virgin Islands and Seaborne airlines to conduct daily flights to Virgin Gorda was prompted by an "untenable situation" and cost the government approximately $450,000 over a one year period, according to Premier Dr The Hon. D. Orlando Smith.

He made the revelations yesterday, December 17, 2013 during the third sitting of the third session of the second House of Assembly after being asked by Third District Representative Hon. Julian Fraser whether Government is currently providing subsidies to any commercial airline in the form of revenue guarantee, or through indirect concessions.

“Madam Speaker, the answer to the Member’s question is no.” Dr Smith stated in response, “Madam Speaker, my Government is not currently providing a subsidy to any airline in the form of revenue guarantees or through indirect concessions.”

Premier Smith confirmed, however, that an agreement was reached with Seaborne airline to start daily flights into Virgin Gorda where the situation had been one of crisis. “There were no scheduled daily services to that island for a considerable period of time,” he remarked.

According to Premier Smith, the agreement came to an end on December 8, 2013.

Virgin Gorda, he related, is the location of the principal part of the Territory’s land based tourism. He also disclosed that there had been daily representations made by stakeholders to his office and to the BVI Tourist Board for action to be taken by the government to address what was an untenable situation.

Seaborne was given a seat guarantee of $100 per empty seat into Virgin Gorda during the period, according to Dr Smith. He further noted that the service was critical given the uncertainty which developed about a replacement for American Eagle.

“While we do not have any such agreement currently in place, I am pleased to inform the House that the BVI Tourist Board is having discussions with a local carrier to provide a much needed twice-weekly scheduled flight from Antigua to the BVI starting in January [2014],” Premier Smith further said.

15 Responses to “Seaborne subsidy cost gov’t approx $450k - Premier”

  • fair is fair (18/12/2013, 14:11) Like (4) Dislike (0) Reply
    If VG is the center of land based tourism, that means that there should be sufficient demand for airlift into that island. Why is so much being paid to Seaborne? Or is there something that I am missing???
  • chad (18/12/2013, 14:30) Like (0) Dislike (0) Reply
    $100.00 per empty seat! so how much is a full seat then? You guys need to convince people that they need to travel on Seaborne often and market like hell.
    • .... (19/12/2013, 09:41) Like (1) Dislike (0) Reply

      I would assume it's $100 per seat whether it's full or empty. What is the difference when the Government subsidizes ferry service to Anegada and most of the seats are empty (as they usually are)?? People need to learn to think for themselves and stop believing the nonsense they read. If they are paying too much is one thing, but to imply that they would agree to pay for an empty seat is just asinine.

  • JACK BE STILL (18/12/2013, 14:37) Like (5) Dislike (3) Reply
    And they refused to subsidise the ferry
    • Yes (18/12/2013, 15:06) Like (6) Dislike (3) Reply
      Please think before you type. There is no ferry from San Juan to VG, this airlift is essential for the continued economic development of Virgin Gorda and the BVI as a whole. It is very common for governments to subsidise air routes until they are established. The high end tourists will not want to fly to Beef Island and then have to take a ferry. If we are to compete with other destinations this is required.
  • profits (18/12/2013, 14:57) Like (2) Dislike (3) Reply
    So long those ferries have to do it on their own without no subsidy and Seaborne service sucks that much and still making a killing.
    • Progressive (18/12/2013, 16:49) Like (5) Dislike (2) Reply
      The Ferries should be making a killing considering the limited flights into Tortola. A few of them (not the good one) just have to WANT to step out of the 1900s and excersize good business sense to do well. Think economies of scale! Reduce price, increase passengers. Change around the schedule so all are not departing empty at the same time, improve customer service and perhaps, just perhaps they will realize a profit. Ferries don't need to be subsidized, they need to rewarded BUT only for good performace :-)!
  • Hmmmm (18/12/2013, 15:43) Like (9) Dislike (0) Reply
    LMAO!! This gets funnier by the minute. If they didn't subsidize it and get those flights into VG during that crucial time, everyone would cry about how they killing the country. It's okay to spend millions paving people's yards and building them walls. But don't spend thousands supporting our Tourism product. Newsflash, every small Territory has to do this. How do you think St Kitts, Grenada, Dominica etc. get their direct AA and other flights? Revenue guarantee is nothing new.
  • fat man (18/12/2013, 16:29) Like (0) Dislike (2) Reply

    see but when coming to the local ferry service you get s#!t

  • !!!$!!!!!$$ (18/12/2013, 17:26) Like (4) Dislike (1) Reply
    Another waste of money
  • wise up (18/12/2013, 18:36) Like (3) Dislike (5) Reply
    just like amercian eagle; when sea bourne makes enough money from foolish BVI them will hall-ass; why cant BVI re-start our own airline and inject those funds in to our own product.....just saying
  • USVI Sez (19/12/2013, 11:53) Like (0) Dislike (0) Reply
    They just go their Govt loan refinanced bc they were not paying
  • Businessman (20/12/2013, 20:11) Like (0) Dislike (0) Reply
    Airline sudsidary is common in tourism destination, we been doin for a while, check figures for LIAT
    and ask Mr. Fraiser it this is expensive.


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