Gov't Finds $5M For BVI Airways; No Date For Take Off

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Premier and Finance Minister, Hon. Dr Orlando Smith (centre)

(PLTM) - A definitive date when direct flights between Miami and the T.B. Lettsome International Airport at Beef Island will take off is unknown, but the National Democratic Party (NDP) government has already paid out $5M to BVI Airways.

In January, Premier and Finance Minister, Hon. Dr. Orlando Smith announced that it will be investing some $7M into BVI Airways to allow for the direct flights, which were originally set to commence next month. However, that date has shifted to possibly in November.

During the House of Assembly sitting on Thursday, September 22, it came to light that government has already disbursed $5M to BVI Airways.

"To date, $5M has been transferred directly for use by BVI Airways. The balance has been placed in an escrow account, which is jointly held by the government of the Virgin Islands and BVI Airways; funds which will not be withdrawn as per scheduled, or request permission from my government," Premier Smith stated in response to questions from opposition member, Hon. Andrew Fahie, First District Representative.

The monies were disbursed to an account abroad in January 2016, $500,000; March 2016, $2.4M; and May 2016, $2.1M.

Hon. Fahie, who referred to the deal with BVI Airways as a sweet one, questioned why government didn't give it to a local firm such as the Brathwaites, rather than an airline that is basically not existence at the moment.

"That's a difficult thing to answer. Of course it would be good to empower our people, but you have to look at all the factors and at that point in time, we thought that this was the best way forward," the Premier responded.

In relation to when BVI Airways will commence its series of flights, Premier Smith said they are hoping by November, but are awaiting regulatory approvals, including from the United Kingdom regulator, Air Safety Support International (ASSI).

"The BVI government and BVI Airways have been working diligently to meet the November launch period for the flights between the BVI and Miami. However, there are many variables including regulatory requirements which are beyond the control of BVI Airways and the government of the Virgin Islands, which may impact the targeted launch date," the Premier said.

"What I want to know is will the plane be flying this Fall," Hon. Fahie asked. "I expect that it will," said Premier Smith.

Ironically, BVI Airways in fact still owes the BVI Airport Authority (BVIAA) some $99,000 in relation to previous landing fees, since the firm only paid a portion of the overall monies owed, which was $112,403.40.

Premier Smith in response to questions stated that to his knowledge, the matter has not been concluded as yet, "but have been ensured that it will be in the near future. BVI Airways has indicated that the amount owed is in the region of $99,000."

"I am hearing that BVI Airways still owes government money and we still take up money to give them, to do new service and they still owe us," Hon. Fahie commented.

"...What you heard is the discussion about this money that is owed and that the resolution that I suggested has not occurred as yet, because of the ongoing discussions," the Premier Smith.

Premier Smith had previously indicated that the $7M will come from the Consolidated Fund. He has also assured that government will be able to recoup the monies and more through the three-year agreement with BVI Airways, because the agreement also includes shared revenues.

He said that the investment by government is being made with the clear understanding that without relatively easy and reliable air access to and from the British Virgin Islands now, they will struggle to provide for the travelling needs of the people, to bring visitors to the Territory and to remain competitive in the main economic sectors of tourism and financial services.

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