After $7M of taxpayers’ money would BVI Airways ever fly?
Broke BVI Airways?
In 2010 BVI Airways began operations at the Terence B. Lettsome International Airport on Beef Island. In 2014 it abruptly ceased operations in the Virgin Islands (VI) and it was reported that the airline ran out of money, while leaving a few people surprised with the short lived operation.
It also left owing the BVI Airports Authority thousands of dollars. However, on January 12, 2016 the NDP Administration announced that it would bailout BVI Airways with a $7M upfront investment in order to help with air access and direct flights from Miami to the VI.
To date, after millions of taxpayers’ money and a deal that some say was poorly negotiated because if BVI Airways never flies we get zero money back, not one flight has taken place, notwithstanding that Dr Smith said the deal was a “game changer”.
Questions on BVI Airways from Opposition
Opposition Leader and Third District Representative Hon Julian Fraser RA is to ask Premier Smith at the First Sitting of the Second Session of the Third House of Assembly of the VI on September 22, 2016 if the defunct BVI Airways is still on target to make its maiden trip to the VI in November as announced.
Meanwhile, Senior Opposition Member Hon Andrew A. Fahie (R1) will ask about the status of the disbursement of the taxpayers' seven Million dollars. In addition, Hon Fahie will quiz Premier Smith about the monies owed to BVI Airports Authority and if BVI Airways has submitted the necessary application to the Air Safety Support International (ASSI) and the US Federal Regulators.
Hon Fahie also wants the Premier to tell the House of Assembly if BVI Airways has acquired the necessary aircrafts, be it through lease, purchase or otherwise, that are required to conduct its operations.
The former Minister for Education and Culture wants to know the name of the Company/Consultants(s) that undertook the feasibility study for the establishment of the agreement between BVI Airways and the Government for the service between the VI and Miami, USA.
Many of the ferry companies have long called on Government to subsidise their operations between the VI and the United States Virgin Islands, and are calling it unfair for taxpayers to underwrite a foreign airline and not do the same for local ferry operations.
33 Responses to “After $7M of taxpayers’ money would BVI Airways ever fly?”
Please note our dear politicians, the taxes raised would not even bring in enough funds to cover your salaries...
Mr. Smith
The BVI Airways investment was not well thought out to begin with and here is why. If you are going to invest in an airline it must not be start up capital. The airline via its private investors must be able to come up with the start up capital and cover operational expenses for at least 2-3 years of operation. Then and only then should the Government consider investing based on the necessity of the service and the financial feasibility of it. They can do so by revenue guarantees which is norm in this business.
The company was operating here and had to cease operations when they got new ownership, why? In addition they owed and as far as I know still owe money to BVIAA. That alone was a red flag to proceed with caution.
Thirdly who are the airline's shareholders? Who other than the BVI Government stands to make a profit should ever a profit be realized?
Finally, if this is the short term plan and the long term is the airport expansion then if the latter is achieved what happens to BVI Airways? How will they compete if ( big if) American or Delta or Spirit or Jetblue start operating here? Blurred vision if you ask me.
Tomorrow will be an interesting day in the HOA. A lot of questions that need answers: BVI Airways/ NHI/Pier park/ Airport expansion pre-expenses etc. I just hope that they are not placed on the back burner as the people deserve answers.
to wize up. That is an "Undisputed Truth." You are unquestionably wize up.
Study out today, Sept. 21st, from ongoing Harvard Medical Research. They study us more than we study ourselves.
View Link: http://www.nytimes.com/2016/09/22/science/ancient-dna-human-history.html?_r=0
To wize up. You are indeed wize up.
Ongoing Research- came out today. They study us more than we study ourselves.
We urgently need to understand that learning the TRUTH about our-story and utilizing its Knowledge is Power to the uplifting and mental/spiritual/physical transformation of our people.
View Link- http://www.msn.com/en-us/news/technology/human-dna-tied-mostly-to-single-exodus-from-africa-long-ago/ar-BBws69U?OCID=ansmsnnews11
The case file needs to be prepared and sent to the DPP along with the Pier Park Case file.