Government issued a formal breach-of-contract notice to BVI Airways on Oct. 31, according to Premier Dr. Orlando Smith.
The notice was sent exactly a year after the nonoperational company was originally supposed to set up a direct flight between Beef Island and Miami.
Dr. Smith (R-at large) addressed the notice in response to a question last Thursday from Opposition Leader Andrew Fahie (R-D1), who also asked whether the company had issued one to government.
It has not, according to Dr. Smith.
The airline originally entered into an agreement with government on Dec. 7, 2015, promising to use “commercially reasonable efforts” to launch direct flights between Beef Island and Miami by Oct. 31, 2016.
In return, government would provide the company with a $7 million “investment” scheduled to be spread out over almost two years and to be refunded if BVIA were sufficiently profitable.
Despite leasing two jets, claiming to hire nearly 40 employees, and releasing numerous statements promising flights would begin at various times between then and now, BVIA has yet to operate a commercial flight to Miami.
On July 18, the airline announced that it was immediately laying off its flight crew, blaming a longer-than-expected regulatory approval process for draining its cash reserves.
The company also explained that it had been in discussions with government for months as it sought to raise additional funds necessary to begin operations.
Unfulfilled obligations?
BVIA further alleged that government had unfulfilled contractual obligations to update the Terrance B. Lettsome International Airport, and said it ran into trouble raising private capital after government’s “ill-timed” December 2016 announcement that a preferred bidder had been selected to expand the airport runway.
Government, however, disputed this account the next day in an online statement.
“The government has provided all the financial support agreed between ourselves and BVI Airways, and furthermore the Airports Authority has put in place most of what was agreed to enhance the arrivals and departure experience of BVI Airways passengers, including an office, additional seating, air conditioning and two ticket counters,” the statement explained.
The announcement added that the Airports Authority was waiting to hear when BVI Airways would commence flight operations before completing any more specific arrangements for the company.
“Having provided the agreed support, this government and people are awaiting the commencement of the much-anticipated direct Miami/BVI flights,” it read.
Attempts to reach BVIA were not successful.