SVG Air plans to cancel all flights between Montserrat and Antigua because it is “not a viable service”.
Paul Gravel, managing director of the airline, said it has lost 50% of its customer base and about US$25,000 in recent weeks due to Hurricane Beryl.
“Because of that, I can’t cross-subsidise Montserrat and the Barbuda service from St Vincent anymore, so it has to stand on its own two feet,” he said during an interview on ZJB Radio.
“If it’s not covering its cost, it can’t fly to loss…so, we’re likely terminating the services as of tomorrow, because it’s not a viable service.”
Passengers who have already booked flights with Air SVG will have the money they paid applied towards the cost of a helicopter flight.
“That’s the only solution I can think of,” Gravel said on 30 July, adding that the fuel companies broke their contract with Air SVG and are providing no compensation.
‘Not of our making’
VC Bird International Airport ran out of Avgas aviation fuel which is used in small piston engine powered aircraft on 22 July.
This meant that both SVG Air and Fly Montserrat had to cancel or delay several flights between Montserrat and Antigua.
The SVG Air managing director said Nevis, which has been supplying the aviation fuel in the interim, is also running low.
“It’s really an unfortunate situation and it’s kind of sad, because both us and Fly Montserrat are being, kind of, held accountable for this by our customers,” he said.
Gravel told listeners that the company had been chartering helicopters to try and get its customers into Antigua to make their connections.
“But where are we supposed to find the money for this? It’s not of our making,” he asked.
No subsidy
In a press release on 23 May, the Government of Montserrat announced plans to pay airlines a subsidy of EC$200 per flight in or out of Montserrat from 1 June to 31 August.
However, it has not subsidised any of the company’s flights as promised, Gravel said.
“They’ve talked about it, but they haven’t stepped up to do it, and we can’t afford to lose any more money,” he said.
Gravel said the United Kingdom government needs to provide the subsidies, but said it is not in their budget, adding that the people of Montserrat are “being victimised”.
He mentioned that if the Avgas becomes available soon, Air SVG would resume services.
“When aviation gas comes back next week, if it shows up, we will be back in business as we were before, as if nothing had happened, I guess,” he said.
Runway too short
Avgas is a scarce commodity as it is not profitable for fuel companies to produce it anymore, Gravel said.
Due to the fuel shortage, the company sent a Twin Otter, which runs on jet fuel, to assist with transport to and from Montserrat last week.
This would be available in the longer term, but there are too many logistical issues with restrictions that are in place, Gravel said.
He reminded radio listeners that 100 feet at each end of the runway at John A Osborne Airport has been designated as safety zones, shortening it substantially.
This means that Twin Otters can only take off from Montserrat with eight or nine passengers rather than the usual 19, making it non-profitable, he said.
Gravel suggested that only solution is for the Government of Montserrat and the UK Civil Aviation Authority to grandfather the Twin Otter into Montserrat.
Good morning from the founder of SVG Air,
SVG Air is not leaving Antigua, we are just halting the services until we get the fuel to fly our Antiguan based aircraft.
We have been in business since 1990 and the Antiguan sister company has been in business since 2011. We are not going anywhere.
We do apologise to our loyal customers for situation, but it is not of our making. We flew for a week at a massive loss, but when we were told that Nevis is running low on fuel and was no longer an option we were forced to stop the operation.
Again we apologise and we are going to make the switch as fast as we can to alternative aircraft for our services, aircraft that burn jet fuel. Which is not in short supply.