Premier denies favouritism in private-jet firms case that cost taxpayers $3m
Premier Ewart Brown has denied Government favoured one private jet company over another, following a legal battle that cost taxpayers nearly $3 million.
The Royal Gazette revealed last week that Government will have to pay millions to get Bermuda Aviation Services Ltd. (BAS) to waive its exclusive rights to offer private jet services at L.F. Wade International Airport. BAS will be repaid $750,000 for funds invested in the pavement of Apron Two and will receive $2 million in compensation for loss of revenue for the exclusive fixed based operation.
Dr. Brown said his Tourism and Transport Ministry had previously licensed Sovereign Flight Support to provide private jet services - in breach of BAS's exclusive rights - based on legal advice that those rights were non-exclusive.
After a second failed appeal, Government was ordered by Supreme Court to pay $202,569 in damages for contravening BAS's rights, which ran until 2014.
BAS's writ against Premier Ewart Brown, as Minister of Tourism and Transport, resulted in a costly two-and-a-half year legal battle.
At a press conference into Throne Speech Tourism initiatives on Thursday, the media asked Dr. Brown if Government had "an obsession with Sovereign".
The Premier replied: "The Government does not have an obsession and we are not pushing one company against another.
"This whole issue resulted from the Government's willingness to promote competition. We were given legal advice that the BAS agreement was non-exclusive. Based on that we proceeded with Sovereign.
"Down the line BAS took the position their agreement was exclusive. They won in court. We paid them because they won and so we have a non-exclusive environment at the airport."