Today’s report that Moody’s Investor Services maintained its Baa2 rating for Princess Juliana International Airport Operating Company PJIAE and called the outlook stable is most welcome. Certainly following the downgrading of the country by the
same agency, St. Maarten could well use some good news in this regard.
There was some concern that recent developments at the Airport, in particular issues with the director based on a screening process for such functions, might have a negative impact on its creditworthiness, but that is – at least for now – apparently mot the case.
The press release does state that a downgrade of St. Maarten’s rating would exert negative pressure on the rating of the Airport. The same would happen in case of “sustained material declines in enplanements or debt service coverage consistently falling below 1.5 times and/or a decline in liquidity levels” at PJIAE.
However, upward pressure could occur if debt service coverage is sustained at 2.5 times or higher over the medium term due to either increased passenger flows or cost-containment measures. Therefore, management must continue to be diligent.
Nothing is mentioned about the planned fixed-base operations (FBO) facility for private jets that also includes a new fire station. The project was stalled mainly because the former Marcel Gumbs Cabinet had serious doubts about the bidding process and amounts involved.
United St. Maarten Party (USP) leader and coalition partner Frans Richardson said on Oral Gibbes Live Tuesday night that the current Council of Ministers had had the matter checked and everything had appeared correct, so the building permit had been signed. He suggested the current Supervisory Board of the Government-owned company isn’t moving forward on the venture for political reasons.
Richardson added that the appointment of a new director now must have priority. Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Minister Irania Arrindell had indicated earlier that the currently suspended director, whose contract runs out this summer, might be rehired as consultant.
Be that as it may, the terminal for non-commercial aircraft is not something that can wait, especially as other destinations in the region are hardly sitting still. It concerns a very important niche market for St. Maarten that also is tied to the mega-yacht sector and the Airport’s hub function.
If all is indeed in order, let’s please just get on with it.
