BVI Airways

BVI Airways was an airline based in the British Virgin Islands and associated with Terrance B. Lettsome International Airport on Beef Island, which serves Tortola and the territory's capital, Road Town. Founded in 2009, the carrier began commercial operations in May 2010 with a small fleet of 19-seat British Aerospace Jetstream Super 31 turboprop aircraft. Its initial scheduled service linked Beef Island with St. Maarten three times a week, positioning the company as a small regional carrier serving the eastern Caribbean. The airline expanded its activities later in 2010 by operating some flights on behalf of Winair and adding Dominica to its network. Its business model initially centered on short-haul inter-island connectivity, a role that is particularly important in the British Virgin Islands because of the territory's geography and dependence on air and sea links with neighboring islands. The company used the slogan “Your Caribbean Airline.” A change of ownership in March 2014 brought former Delta Air Lines captain Jerry Willoughby into control of the company, replacing Luke Smith. Under the new ownership, BVI Airways announced ambitions to move beyond small turboprop services. It suspended its inter-island operations in late 2014 and concentrated on plans for a nonstop route from Tortola to Miami International Airport. The proposed service was intended to provide a direct connection to a major United States gateway and to use larger British Aerospace Avro RJ100 jet aircraft rather than the carrier's original commuter turboprops. The planned Miami service became closely linked to a proposed investment by the Government of the British Virgin Islands. In January 2016, the government announced that it would invest US$7 million in the airline, while officials described a partnership intended to support flights during the 2016–17 winter season. BVI Airways received an RJ100 in October 2016 and indicated that two additional aircraft were expected. Regulatory, operational, and scheduling issues repeatedly delayed the launch, however, and the proposed nonstop service did not become an established scheduled passenger operation. The airline's financial position deteriorated before the new service began. In July 2017, BVI Airways announced wide-ranging redundancies, reportedly eliminating its staff because available cash had been substantially depleted. Hurricane Irma subsequently caused extensive disruption across the British Virgin Islands and the region, further complicating the outlook for local aviation. By this stage, the company's future was already in doubt, and its planned expansion had not delivered the service associated with the government investment. The government later alleged that BVI Airways had materially breached the contract connected with the US$7 million investment. Notices were reportedly served in December 2017, but officials subsequently faced difficulty enforcing their claims and, according to public statements, locating the airline's principals. Opposition politician Andrew Fahie called for a commission of inquiry and characterized the payment as potentially irrecoverable. Separate litigation between current and former owners in New York included serious allegations concerning the airline's management, although those allegations should not be treated as established findings without a court determination. In 2020, an Auditor General's report examined the government's handling of the investment and identified failures involving procurement, legal advice, contract execution, and financial and project-performance management. The report prompted announcements of a criminal investigation into aspects of the matter, with specialist investigative support made available to the Royal Virgin Islands Police Force. BVI Airways is now regarded as defunct; the anticipated Tortola–Miami jet operation did not become a sustained scheduled service.

BVI Airways was established in 2009 and commenced operations in May 2010. Its first scheduled route connected Beef Island, the location of Terrance B. Lettsome International Airport, with St. Maarten. The service operated three times per week using 19-seat British Aerospace Jetstream Super 31 commuter turboprops. In September 2010, the airline began operating certain flights for Winair and expanded its own network to include Dominica. The company changed ownership in March 2014, when Jerry Willoughby, a former Delta Air Lines captain, took over from Luke Smith. The new owner presented a more ambitious strategy based on larger aircraft and a direct connection from Tortola to Miami International Airport. In pursuit of that strategy, BVI Airways suspended its inter-island operations in late 2014 and focused on developing the proposed United States route. In January 2016, the British Virgin Islands government announced a US$7 million investment in BVI Airways and described a partnership designed to launch direct Miami flights in the 2016–17 winter season. The proposed operation was to use British Aerospace Avro RJ100 aircraft. BVI Airways received its first aircraft of that type in October 2016 and stated that two more were intended for the project. Despite these preparations, the launch was delayed repeatedly. The proposed jet service did not develop into a regular scheduled passenger operation. By July 2017, the airline said that it had run down most of its cash reserves before commencing the planned flights and announced that all or nearly all staff would be laid off. Hurricane Irma then caused significant disruption in the British Virgin Islands, although the airline's difficulties predated the storm. In March 2018, reports stated that at least one aircraft had apparently been sold to Net Tune Airwaves. The airline's affairs were also the subject of litigation in New York between current and former owners, in which allegations of misconduct were made. Those allegations remain allegations unless confirmed by judicial findings. The government sought to challenge the use and recovery of its investment. In December 2017 it served notices alleging a material breach of the contract with BVI Airways. Public reporting in 2018 indicated that enforcement had not advanced and that a government minister said officials could not locate the company's principals. Opposition politician Andrew Fahie called for a commission of inquiry and argued that the public funds might be irrecoverable. An Auditor General's report concerning the investment was delivered to the Governor in February 2020, shared with Cabinet in April, and released publicly in June. The report identified weaknesses in the government's procurement and contract processes, the handling of legal and other advice, contract execution, and financial and project-performance management. Following the report, authorities announced a full criminal investigation into relevant aspects of the investment and later made funding available for specialist investigators to assist the Royal Virgin Islands Police Force. BVI Airways is considered defunct, and its intended Tortola–Miami service never became a sustained scheduled airline route.

• 2020

  Audit report and criminal investigation

  [1]BVI Airwaysen.wikipedia.org

  An Auditor General's report on the government investment is published, followed by announcements of a criminal investigation.

• 2017

  Staff redundancies

  [1]BVI Airwaysen.wikipedia.org

  BVI Airways lays off its workforce amid cash shortages before the planned Miami operation begins.

• 2016

  Government investment and Miami expansion plan

  [1]BVI Airwaysen.wikipedia.org

  The government announces a US$7 million investment connected with plans for direct Tortola–Miami flights.

• 2016

  Avro RJ100 enters the planned fleet

  [1]BVI Airwaysen.wikipedia.org

  The airline receives its first RJ100 for the proposed nonstop service.

• 2014

  Ownership changes and regional service is suspended

  [1]BVI Airwaysen.wikipedia.org

  Jerry Willoughby takes control, after which the company shifts its focus toward a direct Miami route and suspends inter-island operations.

• 2010

  Commercial operations begin

  [1]BVI Airwaysen.wikipedia.org

  BVI Airways begins scheduled Beef Island–St. Maarten service with Jetstream Super 31 aircraft.

• 2010

  Winair partnership and Dominica service

  [1]BVI Airwaysen.wikipedia.org

  The airline starts operating some services for Winair and adds Dominica to its network.

• 2009

  BVI Airways is founded

  [1]BVI Airwaysen.wikipedia.org

  The British Virgin Islands airline is established.

A small Caribbean regional airline originally focused on inter-island connectivity, later repositioned around a planned direct link between Tortola and the United States.

• Scheduled airline service · 2010

  Regional passenger flights

  BVI Airways initially provided short-haul scheduled passenger transportation within the eastern Caribbean. Its principal early route connected Beef Island with St. Maarten, while Dominica was later added. These services used small 19-seat British Aerospace Jetstream Super 31 turboprops suited to island-to-island operations.

• Proposed international passenger route

  Tortola–Miami nonstop service

  The proposed flagship route was intended to connect Tortola directly with Miami International Airport. The plan formed the center of the airline's post-2014 strategy and was associated with government investment and the acquisition of Avro RJ100 aircraft. Delays and operational difficulties meant that it did not become a sustained scheduled passenger service.

• 2020

  Audit findings and criminal investigation

  An Auditor General's review identified failures in procurement, advice, contracting, and financial and project-performance controls in relation to the government's investment. Authorities subsequently announced a criminal investigation and specialist investigative support.

  Source

• 2018

  Dispute over government investment and airline management

  The airline's government-backed expansion became the subject of political criticism, contract-breach allegations, and litigation between current and former owners. Public allegations included concerns about the use and recoverability of public funds; the reported claims should be distinguished from proven judicial findings.

  Source

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• 2017

  Workforce reduction amid cash shortagesStrategy

  Background

  The airline reported that most of its cash reserves had been depleted before the planned new service began.

  Action taken

  BVI Airways announced wide-ranging redundancies and indicated that the layoffs might be temporary.

  Aftermath

  The redundancies intensified doubts about the airline's viability, and the planned Miami operation did not develop into regular service.

  Source

• 2016

  Plan for direct Tortola–Miami flightsProduct launch

  Background

  The British Virgin Islands government announced a partnership and investment intended to support a direct service to Miami during the 2016–17 winter season.

  Action taken

  BVI Airways prepared an Avro RJ100-based operation and received its first aircraft of that type in October 2016.

  Aftermath

  The proposed launch dates passed without the establishment of regular nonstop jet service.

  Government investment. US$7 million announced investment (January 2016)

  Source

• 2014

  Shift from regional flights to a US gateway strategyStrategy

  Background

  After a change of ownership, BVI Airways sought to move beyond small inter-island services and establish a direct Tortola connection to Miami.

  Action taken

  The airline suspended inter-island operations and pursued larger aircraft, regulatory approvals, and a proposed nonstop Miami schedule.

  Aftermath

  The route was repeatedly delayed and did not become a sustained scheduled passenger service.

  Source

1. 1BVI Airwaysen.wikipedia.org