$7.2M to BVI Airways is 'not a big deal'- Hon Fraser
Writing on his Facebook page recently, Hon Fraser said he has always had a theory about Government’s motive behind their $7.2 million grant towards the establishment of this airline, but withheld commenting or sharing it until after the airline was in operation.
He said that stance has now changed because of the new controversy surrounding the airline.
BVI Airways, in a press release to selected media houses on July 18, 2017, said it had laid off all staff due to financial and other challenges and blamed the Virgin Islands Government led by Dr The Hon D. Orlando Smith (AL) for its failure to honour its agreement.
Two days later, Premier Smith fired back, stating that Government had honoured its obligations and that the public was awaiting the commencement of flights.
Securing a National Carrier was the focus
“…I was never shocked nor concerned about the $7.2 million given to the folks at BVI Airways because every Caribbean country forks up $$ millions to Airlines just to fly to their destination each year as revenue guarantees. But that is not where this Government is heading,” Hon Fraser stated.
The veteran legislator suggested that the NDP Government was focused on having a national carrier that would be upgraded later when the runway was extended.
“When taken into context the reasons for setting up this airline, rivalries between OT’s must come into play, along with National pride, and of course the genuine need to. Don't be fooled, the BVI is in direct competition with Bermuda, Cayman Islands, and to a lesser extent Turks and Caicos. However, the main target is Cayman Islands. Why Cayman Islands? Because they are easiest to emulate, and they work best as a model.
“Cayman with an International Airport, a National Airline and an economy three times that of ours, it is not rocket science what's missing in the BVI. It is also common sense what we need to do. The NDP gets it, you the people don’t seem to.”
Plan was to upgrade
Hon Fraser was also of the opinion that both Government and the investors of BVI Airways knew the current aircraft, with its four turbofan engines, was not sustainable but that the plan was always to upgrade.
“Remember Cayman with its National Airline? Well here's the NDP’s chance to get one. They can have it without the public debate having to justify its feasibility, affordability or National benefit. This is the NDP Grand Plan. On the issue of efficiency, well it is their hope that before too long, the runway will be extended and a different aircraft type introduced to solve that problem. Plausible indeed.”
Further explaining his point, Hon Fraser said that in the fiscal year 2016-2017 the Cayman Government has given its National Airline $24.7 million, which is a reduction from the year before. And yet an additional $7.7 million to help pay off its debt.
“I'm making a point here, which is, in the scheme of things, $7.2 million on the part of the NDP to own their own National Airline is not a big deal. So much for the motives of this NDP Administration, and its methods for now. There are prose and cons about having a National Carrier; however, I will expound upon those in Part II of this series.”
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43 Responses to “$7.2M to BVI Airways is 'not a big deal'- Hon Fraser”
Mr. Fraser oh lawddy. Yuh almost send mih pressure up with that comment. When local vendors were yet to be paid, schools need fixing, roads need fixing, people hurting you talking ish. That is why u will never be Premier. Because the deal similar to the biwater deal...
They ain't gonna share that fall out money with you, boss. Form yur own squad or make amends with ya old one.
If Fraser does join the NDP, a move like that would remind of the old adage that politics does make strange bedfellows. Could you imagine him joining the same party that attacked and derided his leadership credentials during the last campaign?Even the Thrushes will fly away if Fraser is elected Premier. A vote for X is a vote for Fraser. Leadership matters. Then what happens to OJ? Will he now run at large?
Now to the argument that Caribbean Governments make these deals all the time. That is not true. Yes Caribbean Governments pay airlines to travel to their islands but those airlines are already established and have their own planes and infrastructure in place. That is a worthwhile investment, not this one where we investing in a start up company that never flied that route or did not have any planes or infrastructure in place or even other investors willing to invest start up capital. On top of that the company owed the government 100k which as far as we know is yet to be paid. Then they are given numerous frivolous benefits, some that the government would find it hard to make reality.
Then he talks about the Government wanting a National Airline for national pride simply because Cayman Islands has one. Just like saying my Neighbor has a 2018 BMW so I should get one too never mind that I cannot afford it or that a 2018 Mazda could do the same job?? Caymans is a stones throw 1 hr from Miami(BVI 2.5 hrs away), boasts a population of 60,000 almost twice the BVI and 3 times our GDP. Really and truly that is not a good comparison to make. So if the Caymans Government just recently pumped 31 million into Cayman Airways, how much a year you think we will have to pump in yearly to BVI Airways if we assume ownership? Caribbean Governments should not be in the business of owning airlines as it is far too risky, let the private sector deal with that and just subsidize routes. Where is the feasibility study that was done about this EIS-mainland flight and why is it too sensitive to be made public?
Fraser just jump please. You making yourself a RA(Royal ask me no questions). No wonder you could never be Premier.
That money would have been better and more securely invested in our ferry services having them operating late night and upgrading our ferry terminals. Money would have stayed right here too.
Vi every one was happy when they heard about straight to Miami and thought it was a good thing.there is a motive behind all this and Fraser say we the people don't see it .all of sudden plane can't fly. Employees gone plane bond on ground people wake up their plot came through and I always say there is some thing wrong .stop hating on Fraser and go back and read his article you miss the point .Andrew say cow will jump over the moon before plane fly bont you think he why he say what said. He too see the picture no one .and. O one made fuss in him knowing what he knows
It's a trick in how the goverment do things you don't needed a degree a to figure this out. In this way they now force our hand to build extend o. The airport faster than we think .people wake up wake up .stop hating o. Fraser.this the same reason the ndp is now in power gaving us sh