It appears that government’s stalemate with BVI Airways continues.
Opposition Leader Andrew Fahie (R-D1) asked Dr. Smith how much additional funding — on top of the $7.2 million in taxpayers’ money BVIA has already received — the company had requested in order to fly, and when he found out about the company’s request.
However, the premier re-hashed a line he has used to deflect questions about BVIA several times in recent months: He said it would be “prejudicial” to reveal that information, since the company is “currently engaged with various entities in relation to investment in the project.”
When Mr. Fahie protested, Dr. Smith said the answers would be available in a few weeks.
In response to a separate inquiry from Mr. Fahie, the premier also declined to say whether any measures were being enforced to recoup the taxpayer money advanced to BVI Airways.
In a statement to the public later that night, however, Dr. Smith sung a slightly different tune.
“This government will fight with every ounce of strength to make sure that BVI Airways makes good on its commitments to this territory — and if it cannot or will not do so, that the people of this territory are compensated for that loss,” he said.
Dr. Smith added that he hopes to be able to share positive news about the company in the coming weeks.
Background
The airline entered into an agreement with government on Dec. 7, 2015, promising to make “commercially reasonable efforts” to launch a direct flight 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 two years and to be refunded eventually if the company is sufficiently profitable.
Despite leasing two jets and publicising several statements promising flights would begin at various times between then and now, BVI Airways has remained grounded, never completing a commercial flight to Miami.
On July 18, the airline claimed that a longer-than-expected regulatory approval process had drained its 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.
Government, however, directly disputed those claims the next day in an online announcement.
“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 arrival and departure experience of BVI Airways passengers, including an office, additional seating, air conditioning and two ticket counters,” the statement read, adding, “Having provided the agreed support, this government and people are awaiting the commencement of the much-anticipated direct Miami/BVI flights.”
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