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Government subsidising BVI Airways from its own funds – Premier Smith
He make this confirmation at a press conference held at the Central Administration Complex on January 21, 2016 during which he addressed a number of concerns affecting the territory.
Government recently announced that in order to continue to open the tourism sector and to boost the financial services sector, it needed to collaborate with the private owners of BVI Airways to commence direct flights to the United States, in particular the Miami International Airport, from the Terrance B. Lettsome International Airport.
The Premier at an event on January 12, 2016 said the Government was pumping $7 million into the venture, even though passenger numbers could not be guaranteed, in the hopes of opening the territory to travel without the hassle of transiting through the United States Virgin Islands.
“Government will recoup this money because of a [three-year] revenue sharing arrangement between the Government and BVI Airways,” he said. “When the airline makes money there is a way that the airline will return some of the money that is made [to Government],” said Premier Smith.
Asked how government would be sourcing the money to invest in the airline, Premier Smith said, “It will be coming from Government’s funds.”
Critics have spoken out against the move by the Government in the wake of financial straits that Government has been experiencing over the past months, where contractors and service providers are yet to be paid for work done during 2015.
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27 Responses to “Government subsidising BVI Airways from its own funds – Premier Smith”
These numbers are based on full capacity operating 7 days a week. They are talking about two to three days.
Who is running these number and getting anything but negative numbers. That money is not coming back.
Any chance we can see the numbers you ran to see where you got it wrong. (Or right?)
You self same folks will be catching ferry to St Thomas and flying Jet Blue to save a couple bucks
Please find out what is possible from the figures. If you have figures to show how it works please show them.
Non of this is about making a working transport system (proper ferries can do that) this is about access to and distribution of money to the right people. We can already fly to St MArtin or SJU to transfer. Makes no sense to fly to MIami and then transfer. There is no advantage. Great if you just want to get to Miami though. 1000 people a day going to Miami from BVI??
I would love to see the figures that prove me wrong (or right?)
I have friends coming in from St Thomas by ferry (now almost up to $100 round trip) but the direct flight from Jet Blue was $322. YOU choose!!!!
Support the ferries and get more people!!
BVI Airways could not stay airborne before so why do we think that it will stay airborne now? Bet that BVI Airways did not have many investors racing to invest in it. But somehow it found a su..r in the BVI. One is born every second. Government will never have the money to do all things that it needs to do. Demands will always exceed resources. As such it must prioritize and make the best use of its scarce resources. Is this $7M investment the best use of scarce resources? As Andrew says, we must keep it real. "We cannot love someone so much that when they are wrong they are right. Or we hate someone so much that when they are right they are wrong."
Nonsense!!!!
Your figures have not taken into consideration revenue alternatives like baggage fees, fuel surcharges and cargo fees. Also no airline sells all their seats at one price so the low end one way figure of $ 300.00 ( Still not sure where you got that from) will not be for all the seats. $300.00 will be the starter for the first say 10 seats then once they are sold $350 for the next 10, $400 x10, $450 x10, $500 x10, $550 x10 and 600 x10. Then there is business class of say maybe 10 seats( maybe less) that might range from $1000 x 5 and 1200 x5. You already got $ 42500 in revenue on a one way full flight and this does not include baggage fees, cargo and fuel surcharges. A lot more complex my friend.
I take major issue with the fact that we have to pump 7 million dollars as start up capital for an airline that is yet to prove its necessity and efficiency by being in operation for a couple years then we can consider subsidizing it.
Secondly, BVI Airways will have to forge interline arrangements and possibly codeshare so that they can tag and issue one ticket with the major carriers like AA, BA, Delta, Virgin etc. This does not happen on start up or overnight as they have to prove their reliability, safety and viability for a couple of years before the major carriers jump on board. A lot of people are enrolled on the frequent flyer programs of AA, BA etc and would want to earn miles, so codeshare arrangements should be sought. Thirdly, immigration in Miami is major stumbling block as from what I have heard Miami Immigration is very long and hectic experience so that maybe a drawback especially when your bags will not be tagged for connections.
My figures were simplistic. $300 was from the owners of the company.
As the figures were simplistic I think they were representative of real expectation as the flights will not fly full but that was my assumption for the purpose of demonstration.
It would be nice to see some figures that were actually used when deciding this was a good investment and what performance was needed to get our money back. I say ours as it is our money the Government is using not theirs. They have been put in place to manage our affairs properly. So much better it would be with TRANSPARENCY ACCOUNTABILITY RESPONSIBILITY.
Typical design weights*
Maximum Take-off Weight. KG. Lbs
• standard. 42,185. 93,000
• maximum. 43,999. 97,000
• unpaved. 39,009. 86,000
Maximum Landing. 38,556. 85,000
Zero Fuel Weight. 35,834. 79,000
Typical Operating Weight Empty**
• 5 abreast. 24,600. 54,234
• 6 abreast. 24,820. 54,719
Payloads
Maximum structural
payload. 11,234. 24,766
100 Passengers @
95 Kg 9,500 20,94
LOL were you carrying the cargo when the plan burns 15,000lbs of fuel for a 1,000nm leg and you need 45mins reserves and a next hour, into Florida the land of thunderstorms lol.
Please be advised people in the BVI can read and write and we are not riding donkeys much anymore. Please stop taking us for fools. We have members of our community present in some of the highest places in this world. Stop taking us for idiots Doc.
Unfortunately no one has ask the question where will this jet park.
Lets Calculate (Max Weight)
Dash 8 200 - 36300 lbs
Dash 8 300 - 43000 lbs
ATR 72 - 50000 lbs
They all sink into the current ramp even if they are not at max weight.
BAE 146 - 100 - 84000
BAE 146 - 200 - 93000
BAE 146 - 300 - 97500
I'm just wondering are we going to reinforce the ramp first???