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BAS sues Govt. in a dispute over private jet services deal

Ken BAS CEO Kenneth Joaquin: 'We want Ministry to honour the agreement.'

Bermuda Aviation Services Ltd. is suing the Government over what the company says is a breach of its exclusive rights to provide private jet services at L.F. Wade International Airport.

The company, together with its subsidiary Aircraft Services, has filed a writ against Premier Ewart Brown, in his capacity as Minister of Transport, as well as Attorney General Phil Perinchief, in a case to be heard in commercial court.

BAS chief executive officer Kenneth Joaquin said yesterday that the company's exclusivity deal extended to 2014, but new competitor the Sovereign Group was being given permission to offer a rival private jet service.

Sovereign is in the process of converting a former US Air Force building on Southside into a private jet passenger terminal. BAS believes Sovereign has not had to compete in a tender process for the right to offer the service.

And the Ministry would be going against the advice of its own technical advisors if it gave Sovereign permission to operate private jet services, BAS claims.

"Presently we are not aware who the principals are behind the Sovereign Group," Mr. Joaquin said yesterday. "But it is our understanding that they are currently involved in constructing a facility for the purpose of providing private jet services.

"We have also been made to understand that they were not required, as BAS was, to compete in an open tender to be able to provide this service.

"Additionally, we are aware that technical advisors to the Ministry of Transport (the Air Advisory Committee) had recommended that no other service provider should be allowed to operate a private jet facility at the airport."

Mr. Joaquin said BAS had won an exclusive right to offer private jet services through an open tender in tender in 1997. The deal was extended through to 2014 four years ago, he added.

He added that BAS had to pay for the right to operate at the airport and had additionally invested nearly $800,000 to improve ramp surfaces and facilities.

Mr. Joaquin said BAS had made its concerns known to the Transport Ministry, though there had been no direct dealings with Dr. Brown.

"The Ministry has taken the position that our lease to occupy the building does not grant us an exclusive right to operate a private jet facility," Mr. Joaquin said.

"However, we were awarded a concession that provided for the operator of the private jet facility to have an exclusive right of service; the lease was entered into as a consequence of being awarded the concession.

"Having dealt with the Ministry of Transport in good faith, we simply want the Ministry to honour that agreement that was made to provide BAS with the sole right to operate until 2014 and longer on the basis that we continue to do a good job."

We were unable to get comment on the matter from the Transport Ministry by press time yesterday. And we were also unable to contact representatives of the Sovereign Group.

Sovereign Group's plans involve turning the disused building, which is near to the Southside Cinema and Pizza House on Southside Road.

Known as "Carter House", the building is on the outer perimeter of the airfield and has its own 275,000 sq ft apron area where private jets can be parked.

There will be space for 13 cars to park next to the new terminal and an entrance canvas canopy is envisaged.