Video: Minister & Airport Chair On Airline Service
Minister of Transport Lawrence Scott and Chair of the Bermuda Airport Authority MP Lovitta Foggo held a press conference today [Oct 28] to discuss airline service to the island.
“There has been a focus on the announcement by an air carrier that they will not be servicing the Boston route this winter,” the Minister said, explaining that in the case of the Boston market, the “current demand for service or lack thereof,” is not seen as financially feasible by the airline between November 2021 and February 2022.
“It is anticipated the Boston route will return in March 2022. In the meanwhile, connectivity is available to Boston through other gateway cities,” Minister Scott added. “ I have empathy for those who are affected by the airline’s decision which results in us not having direct service to a key gateway city.”
Minister Lawrence Scott’s full statement follows below:
Good morning members of the media,
Recently there has been a focus on the announcement by an air carrier that they will not be servicing the Boston route this winter.
I know that many of our residents depend on this route for business and personal reasons. Not having this non-stop service will inconvenience many, especially those who frequent the area for access to medical treatment and universities.
Since the early 90s, every airline that has provided year-round service to the island has received a marketing incentive and or a Minimum Revenue Guarantee [also known as an MRG] from the government at some point in their life span. The positive of an MRG is that Bermuda gets continued air service. However, the downside is that an MRG disguises or artificially inflates the strength of the market on its own.
It goes without saying that Covid has negatively impacted governments and airlines alike, in their ability to generate and sustain revenue. This means that the air service provider will have to rely on unsubsidized revenue and in the case of the Boston market, the current demand for service or lack thereof, is not seen as financial feasible by the airline between November 2021 and February 2022.
In 2019 prior to Covid, airlines had the economic and financial ability to weather our shoulder season. However, in 2021 they are looking at every opportunity to generate as much revenue as possible. So instead of losing money on the Bermuda route, they look to allocate their resources to more profitable destinations.
It is anticipated the Boston route will return in March 2022. In the meanwhile, connectivity is available to Boston through other gateway cities.
As I stated in the beginning, I have empathy for those who are affected by the airline’s decision which results in us not having direct service to a key gateway city.
With that said, I am encouraged with the progress that the Air Service Development team, led by the Bermuda Airport Authority, is making in addressing the traditional challenges in this area. I invite, MP Lovitta Foggo, Chairperson of the Airport Authority to give an overview.
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It is clear that Jet Blue is only interested in profits because they could have reduced the service to say, once or twice a week. To abandon the Island that has served them for years is sad but understandable when money is king.
“It is clear that Jet Blue is only interested in profits”
I’m gonna go out on a a limb and suggest that this is true for every business in the world.
New York’s more fun anyway
Lovitta do you really think we are that stupid? For those of you that didn’t see Lovitta’s speech – she said “as time has gone on we have seen increase of flights from one month to the next” lolololololol. We lost Miami and now Boston. But flights are increasing. Go back to school.
Ah “back to the plantation” Foggo….yup, she aint the fizziest drink in the fridge.
Lovitta, overgrown roads and parks in your “constituency”. Thank you, thank you to person who was major in getting our roads and other areas trimmed, cut back, cut down. Fences are being replaced and repaired too. Thank you all who were involved in the massive task. Seeing bags of trash placed on Sofar Road and Covey Valley..”Hello, trash is collected on Friday’s or see Kenton Trott to collect from you on Monday for $9.00 a month.