WINAIR contract to end June 30
Travelers to Montserrat panic over bookings as GoM negotiates, Montserrat Airways feel rejected
by Bennette Roach
April 11, 2008
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| Carib Aviation and LIAT aircrafts |
Last weekend and shortly after Chief Minister Dr. Lewis had responded to a question in a post-budget interview regarding the airline service into Montserrat, WINAIR officials announced that they had received word that the Government of Montserrat (GoM) had advised that their contract to service Montserrat will not be renewed after June 30, 2008.
Dr. Lewis had shied away from the issue, and said he would prefer the respective Ministry respond to the matter as they are working as a team. He said however, "Government is actively working to see that we have reliable service into Montserrat for the foreseeable future."
Following this the news came from WINAIR out of St. Martin and about the non-renewal of the contract and later news that a Government negotiation team which included two Ministers and the Montserrat Tourist Board, had been in negotiations in Antigua with LIAT and Carib Aviation.
Contact and information from officials have been difficult and they have remained tight-lipped on information except to say that, ‘that discussions are on-going with LIAT and Carib Aviation.'
It is believed that GoM had to give WINAIR three months notice of their intention. The result is that some measure of panic has set-in as travelers to Montserrat began to discover that they no longer have a booking or are unable to make bookings beyond June 30, 2008.
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| WINAIR aircraft - only aircrafts now used to fly to Montserrat by WINAIR |
Meanwhile Montserrat Airways, who in November last year said it needed an estimated $400,000 start-up capital to provide alternative air service in 2008, to help Montserrat become self-sufficient in its air transportation requirement, has said this week, "The Montserrat Airways proposal to GOM & MDC is still awaiting a decision."
Montserrat Airways said it had been in contact with GoM, but there seems to be some confusion as to their position. Captain Nigel Harris of Montserrat Airways said, "We remain willing to work with Carib, or work as a separate entity, to provide additional support for Montserrat," and also "We sincerely hope that you do not close the door to what we believe is a long term benefit to the economy and social needs of Montserrat."
A note to the CM urged: "Irrespective as to whether a Carib/Liat proposal has been accepted by you, I would urge you to also support Montserrat Airways."
He said since the company's proposal seeking equity funding, they had written to the new Minister of Communications and Works reminding of the services a locally owned air service can provide such as "Air ambulance; freight, day trippers, frequency and fares, working actively alongside MTB to promote tourism."
According to one source the confusion arose when from a proposal of an initial need for $250,000 the need moved to $2.5 million.
Harris explains: "We made our original proposal to the GOM in August 2007 asking for EC$850,000 in return for equity.
Additionally on the advice of DFID we asked the MDC last November for EC$250,000, again in return for equity.
This is a total of EC$1.1mio which has always been and remains our position.
The EC$1.1. is based on a purchase of an islander at $EC$810,000, which could be owned by the GOM and leased to MA, or used as their security. The balance of EC$290,000 is for licences, approvals and other start up costs. So effectively the GOM is only risking $290,000 which I respectfully say is a small price to pay for the security of access, the benefits that this provides and enduring sustainable air transport. A twin Otter can be leased.
The MDC commissioned an Independent report on our proposal from GHK in February 2008; this significantly supported our proposal but went further, as Consultants do, saying EC$2.5 would provide lots more than we intended, and lots of surplus in our bank account. This is their figure, not ours.
We have always said that our proposals are not prescriptive, we would be delighted to modify our plans based on discussion with the stakeholders, including GOM."
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| CM Dr. Lewis and Nigel Harris at the discussions of the new Montserrat Airways proposal initiative |