subsidiary in Bermuda to handle its international operations.

YVR International Services Ltd., owned by Vancouver International Airport Authority will have its corporate headquarters at law firm Conyers, Dill & Pearman.

Vancouver International is the Canadian firm that has entered into a multi-faceted relationship with Government, to take over the running of the Airport.

YVR International chairman Mr. Frank O'Neill said: "The international work that we do will be handled through that Bermuda firm, YVR International Services Ltd. It is a subsidiary of the Canadian company, which is the YVR Airport Services Ltd.'' Mr. O'Neill said YVR is the "designator'' for the Vancouver International Airport. He is on the Island this week, as part of a quarterly visit to check on the team's progress in responding to priorities.

He is scheduled for a variety of discussions with various local officials on the airport's future operations.

He said of the new Bermuda company: "The only shareholder is the Vancouver International Airport Authority. YVR Airport Services Ltd. is the Vancouver corporate office that handles our Canadian business.

"We have some Canadian airports that we provide services for. YVR International Services will deal with our international accounts.'' The Bermuda office will play a role in the work being done by the firm internationally.

Mr. O'Neill said: "We are doing some work in Argentina. The money that is from that contract will be sent to the Bermuda company. We also have some work in China and we are looking at other countries.

"So as contracts are won in other countries, we will be using the Bermuda office to handle the international accounts. "The advantages of incorporating in Bermuda include the exempted company provisions there. There are certain tax advantages, as well as other advantages, from handling the international business outside of Canada. There are a number of venues that the business could be conducted from. We chose Bermuda to do that.

"It certainly was influenced by the contract that we have in Bermuda. It made more sense. We would have had to choose some offshore venue at some point in time.

"The fact that we were successful in obtaining the Bermuda contract meant that we could keep it simple, incorporate in Bermuda, and let the Bermuda company handle the rest of the international business from there.'' The tax-exempt Vancouver International Airport Authority is a not-for-profit company that puts income, including income from its subsidiaries, back into the Airport.

Transport Minister the Hon. Maxwell Burgess, last month informed the legislature that Vancouver International will help the Government address their new obligations including airport safety and security; compliance with international regulations; developing and implementing policies and pricing to increase airport revenues; and, developing agreements with airlines and other companies servicing the airport and airlines.

He said the firm will help the Government ensure value for money from airport contractors; work with the US Navy to ensure a seamless transfer of operations and responsibilities; work with Serco Aviation to make sure air operations are carried out in a safe and efficient way; and, train Bermudians to take over the management of the airport.

He said: "Its (Vancouver International's) programme includes seats at senior management training courses conducted by the International Aviation Management Training Institute. Since 1987, this Canadian-based organisation has provided state-of-the-art practical management training to more than 3,000 aviation managers from 156 countries.'' The one-year, $616,000-Government contract with the Canadian company includes their temporary provision of three of the five managers for the new Government department of Airport Operations, by recruiting experienced aviation business managers from Vancouver International.

The three positions -- general manager, operations manager and financial controller -- will have Bermudian understudies. Two other positions -- air terminal manager and facilities manager -- will be filled immediately by Bermudians.

Although the initial contract is just for a year, there are options for the company's continued presence for another two years. Those options will be exercised depending on the performance and readiness of Bermudians.