NDP rejected local aviation investor for foreign, $7.2M down the drain
They claimed that it’s the practice of the NDP since taking office (2011-current) to put out the red carpet for foreign investors and most often Caucasians and block or frustrate local residents.
One local businessman and co-owner of VI Airlink, Captain Neville C. Brathwaite Jr., told the public that in 2007 before the NDP left office his company approached them with an executive summary to purchase brand new aeroplanes to do direct flights from Miami, Florida USA, to the Terrence B. Lettsome International airport on Beef Island.
"They ignored us"- Neville C. Brathwaite Jr.
Mr Brathwaite said he even did a presentation to caucus, however, he noted that he had not "heard nothing back from them not even a phone call".
He was at the time speaking on the ZBVI 780 AM radio programme, Honestly Speaking with Claude O. Skelton-Cline, on Tuesday, April 17, 2018. Kareem Nelson-Hull was sitting in for the host who was absent due to the passing of his grandmother earlier yesterday.
In addition, Mr Brathwaite whose late father started many Virgin Islands (VI) registered airline companies said his family’s airline, VI Airlink was, in fact, the first to approach government about commencing direct flights between the VI and Miami, Florida.
But unfortunately, he heard nothing back from the current government "not even a telephone call" he stated on public radio. However, in 2016 he was surprised to learn that the said administration had given away $7.2 million to the controversial BVI Airways to commence flights to Miami.
The same BVI Airways pulled out of the Territory in 2014 claiming that they were bankrupt owing the BVI Airports Authority (BVIAP) some $100, 000.
$7.2 gone with the wind
"We really felt bad to watch what happen, the money needed to stay and circulate in our economic," the young businessman and pilot stated.
Additionally, VI Airlink’s cost was higher than what Government gave away to the foreign investors but Captain Brathwaite explained that the cost was $50 million because the aeroplanes were brand new and would have lasted for the next 25 years and were 70 seaters.
To date, BVI Airways have not flown and government and taxpayers will not be getting a dime back. Leader of the Opposition, Hon Andrew A. Fahie (R1) has called for a Commission of Inquiry (CoI) into the BVI Airways saga.
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28 Responses to “NDP rejected local aviation investor for foreign, $7.2M down the drain”
wowww...
Timing - took proposal to NDP in 2007, the same year they were ousted.
Cost - $50 Million- local or not, that’s a lot of Money!
But $50m by government into new aircrafts whether local or not, would be just as bad.
Govt does not run businesses well, so it should just stay out, period.
Go back and read what the last governor said " he saw no need for further investigation " into the cruise ship development project .
Understand the delay the governor before did, the UK is in full support of the NDP, the same UK government that wanted to get rid of Ralph oneal
Moreover, providing non-stop service between Miami International Airport (MIA) and Terrance B. Lettsome International Airport (EIS) is a challenging opportunity. The challenge is maintaining and sustaining passenger load factor (PLF)(Revenue Passenger Mile/Available Seat Mile; RPM/ASM), a critical airline economics metric. PLF, simply, is the loading of aircraft with paying customers. An aircraft needs a specific (minimum) number of paying customers on each flight to turn a profit. PLF varies among airlines, flights……etc. No airline will start or continue a route if a profitable PLF is not sustainable.
At this juncture, non-stop flights between MIA and EIS can be a challenge without public subsidy. Thus far no major airline is racing with break neck speed to start a non-stop MIA-EIS flight; it may not be profitable without a subsidy.
Furthermore, the question is should public funds be used to subsidize non-stop flights from Miami, Atlanta, London, NY, Toronto, Paris……..etc and Beef Island to make the territory a more competive tourist destination? Would direct flights between these cities and Beef Island be a more viable option? Should modernizing/subsidizing the ferry service between St. Thomas and Tortola/Virgin Gorda be strongly considered?
A. Non-stop vs Direct Flights: Non-stop is a flight from point A to point B, ie, Atlanta to St. Thomas; whereas, a direct flight has at least one stop on the way to final destination, ie, London to Bermuda to Antigua; direct flights maintain the same flight # throughout.
B. Typical Functional PLF: There is no standard PLF; it varies among airlines, flights....etc. Airlines have high fix cost and needs paying passengers onboard to cover at least Break Even Load Factor(BPLF); PLF below BPLF means airline or flight is operating at a loss and above BPLF, profit. Per the International Air Transport Association (IATA) the mean PLF of airlines varies b/w 78-80%. Airlines operate at a PLF that is profitable.
C. PLF Applicability to Both Legs: Yes.
Airlines will not operate consistently below BPLF; if so they will cancel the route. PLF is a critical factor in all modes of transportation, ie, aircrafts, ferries, buses, trains......etc. Sometimes subsidies are needed to keep modes of transport operating.
How can $7.2M just vanished without an uproar by taxpayers? We are talking about $7.2M, not $7K or $700. BVI taxpayers got shafted on this deal. All the people on this deal needs to be taken to task on this ludicrous and embarrassing deal. We are really self haters. If VI Airlink had highjacked the BVI taxpayers for $7.2M, all hell would have broken loose. But some external folks did it and our nonchalant attitude is baffling. The big question is how could government give away $7.2M on a project without the funding being authorized and appropriated by the HOA? The process needs to be revised to prevent this from happening in the future. Passing the budget should be the first step for funding major projects. Nonetheless, there must be some accountability for the missing $7.2M.
How do you deliberately destroy a person or in this case, an entity that has subsidized your efforts and garnered your success just because you have deemed your self to be entitled.
Something is out there that is greater than all of us and it gives just rewards and you can count on it.
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