One day after BVI Airways announced widespread layoffs and blamed government for ongoing delays, Premier Dr. Orlando Smith released a statement arguing that the territory had held up its end of the bargain.

The airline company publicised the layoffs on Tuesday, citing money issues.

“BVI Airways regretfully announces that it is immediately laying off its entire flight crew (pilots and flight attendants) as a result of ongoing delays,” BVI Airways announced in a statement, adding, “Hopefully, this will be a very short-term situation as we continue to work through remaining issues with the government and will be able to commence flights shortly.”

The airline entered into an agreement with government on Dec. 7, 2015, promising to use “its commercially reasonable efforts” to launch a direct flight between Beef Island and Miami by Oct. 31, 2016. In return, government provided the company with a $7 million injection.

Despite leasing two jets and publicising numerous statements promising flights would begin at various times between then and now, BVI Airways has remained grounded.

On Tuesday, the airline claimed a longer-than-expected regulatory approval process had drained their cash reserves, and that it has been in discussions with government for months to raise additional funds “required” to begin operations.

BVI Airways further alleged that government has 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.

Dr. Smith (R-at-large) however, directly disputed this.

“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,” he said in a Wednesday afternoon announcement.

The premier added that the Airports Authority was waiting to hear when BVI Airways would definitively 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,” Dr. Smith said.

See July 27 edition for full coverage.

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