Minister: $3.4 Million MRG Payment To Skyport

July 15, 2022

The Government’s latest Minimum Revenue Guarantee [MRG] payment to Skyport was just over $3.4 million, Minister of Transport Lawrence Scott said in the House of Assembly today [July 15], adding that “to date we have made seven MRG payments to Skyport totalling $47,392,811.82.”

The Minister’s full statement follows below:

Mr. Speaker, on the 12th November 2021, I advised this honourable House of the payments made as set out in the Project Agreement between Skyport and the Bermuda Airport Authority. I wish to provide the House with an update on the latest MRG payment made to Skyport this month.

Mr. Speaker, on 8th July 2022 Skyport, provided the Airport Authority with a formal notice of the shortfall of $3,474,927.53 between the actual airport regulated revenue collected for the period from the 1st April 2022 to the 30th June 2022 and the guaranteed minimum regulated revenue for the same period.

Mr. Speaker, in late 2021, I advised the House that the Project Agreement contains a pre- determined schedule of the guaranteed minimum regulated revenue amounts for each calendar quarter of the 30-year contract. The Government continues to honour its obligations in this regard, including making this latest MRG payment of $3,474,927.53 to Skyport.

Mr. Speaker, to date, we have made seven MRG payments to Skyport totalling $47,392,811.82 including this payment. Although we are trending in the right direction [each quarterly payment has been lower than the previous year’s quarterly payment], even with the increased air routes and passenger traffic we anticipate that MRG payments for the remainder of 2022 and into early 2023 to be approximately $5m.

Thank you, Mr. Speaker.

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Comments (12)

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  1. DSimmons says:

    I swear these guys are clueless. You have a Travel Authorisation form that is hindering tourism right now.
    Then the powers that be are wondering why there are less people coming to the island. Which means less revenue to everyone and now we have to pay the guarantee minumum penalty to Skyport. Drop it now or is this part of the plan.

    • patrick says:

      you are right now all airlines staff no Bermuda has a lot of needed paper work before they can check you in. they even tell people you need a covid test to travel there . it happen to me this week do away with TAs.

    • watching says:

      The TA form is not hindering travel to the extent of the cost of the MRG is hindering the government finances. The income from the TA form is actually allowing us to continue paying these MRGs. Without it, we would be further in the hole.
      I get that it sounds great to blame everything on the TA but it is not the case.

  2. Ringmaster says:

    Costs that can be reduced by increasing air arrivals by good marketing, dropping the TAF and a competent BTA. Most islands have seen arrivals back to 2019 levels, and beyond, except Bermuda. Why?

    • Burtcoin says:

      Increase air arrivals and put the people where??? Everybody forgets we don’t have the beds with Fairmont Southampton closed

      • Ringmaster says:

        You’ve just made the case to close or severely reduce the BTA. What’s their job if there’re no beds? How is the SP renovation coming along? Where is the final signed agreement? Is there a Plan b, c etc if it doesn’t reopen, as is likely?

    • watching says:

      Clearly because we don’t have enough rooms. In 2019 Fairmont South P was still open. As was the cottages at Elbow. Now they aren’t. hence the need for Fairmont Southampton project.

  3. Common Sense says:

    Here’s a thought. Deduct these revenue guarantee payments from the BTA’s budget. As the BTA is staffed by excessively compensated people, with generous bonus packages, whose job is to increase air arrivals….they should be penalized for these revenue payments. The fact that we have to make these payments is proof of the BTA’s failure to deliver.

    • Unbelievable says:

      I don’t believe that it’s the BTA fault that tourism is in the dumper but I do agree that many in the BTA are GROSSLY overpaid.

    • Bda says:

      Yes provided the Government drops all the Covid restrictions. Until then the PLP owns this mess.

  4. sandgrownan says:

    Still cheaper than building a new airport with all the usual PLP and Civil Service incompetence, no bid contracts and greased palms.

  5. kevin says:

    can he explain the 5 million we pay every qtr on the revenue shortfall of the Hospital a plp gift to Bermuda and he wants to talk about an airport revenue shortfall his government is responsible for because of the TA
    You wanna explain what is the definition of no idea and STU*p*ity…its plp