At a loss

At a loss

It was interesting to read that the Dutch government has made 1.5 million euros available (see Tuesday newspaper) to subsidise ferry services between St. Eustatius, Saba and St. Maarten in 2027. Authorities will meanwhile explore how to add subsidised air travel in the future, Minister of Infrastructure and Water Management Vincent Karremans and State Secretary of Home Affairs and Kingdom Relations Eric van der Burg wrote to the House of Representatives.

Connectivity between the so-called SSS islands was rightly called a “basic provision” for Saba and St. Eustatius residents, who depend on St. Maarten for access to healthcare, educational institutions and essential services like banking. The two Jetten Cabinet members argue that both air and sea connections should exist alongside each other to safeguard predictable access to Saba and St. Eustatius.

This is considered a softening of the Dutch government’s long-standing reluctance to fund air travel, despite having subsidised the Makana ferry since late 2021. The latest letter also referred to adverse weather conditions, saying a strong crosswind may result in flights having to be cancelled, while swells on the open sea could make ferry operations impossible or risky.

Discussions will be held with St. Maarten too, regarding exploration of a public service obligation (PSO) for both air- and ferry connections. Between 2022 and 2025 the Makana transported approximately 35,000 passengers per year between the SSS islands, but according to the duo it has become clear that the ferry connection is not economically viable without a contribution.

In July, Dutch Parliament passed an amendment to the BES (Bonaire, St. Eustatius and Saba) Aviation Act, which created the legal framework for a PSO on air routes to the Caribbean Netherlands. The legislation allows government to set requirements for ticket prices, frequency and capacity and to compensate selected airlines.

Ironically, no mention was made of Winair, which currently covers the routes. That is all the more noteworthy, because in addition to St. Maarten’s 92.05% share, the Netherlands owns 7.95% of the company on behalf of Saba and Statia.

What’s more, on December 31, 2020 the Dutch government provided the regional carrier operating out of Princess Juliana International Airport (PJIA) with a US $3 million mortgage loan during the height of the COVID-19 travel crisis that has since been repaid.

Ultimately, approaching the existing airline for offers with subsidised rates remains the most likely scenario. Winair should be open to such, but one can’t expect it to operate flights at a loss either.

The Daily Herald

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