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Aviation watchdog optimistic about local air services boost

Thomas Dunstan, the director-general of the Bermuda Civil Aviation Authority (File photograph by Blaire Simmons)

Developments in island-based air services are a step forward for Bermuda, the head of the island’s aviation regulator said.

Thomas Dunstan, the director-general of the Bermuda Civil Aviation Authority, was speaking after the launch of BermudAir as well as jet charter Bermuda Direct Air Service and locally registered Blue Sky Flights.

He told The Royal Gazette: “If Bermuda can encourage more air services, it would generate more revenue for us and Bermuda as a whole, and it better serves the public.

“We had a lot of air service decrease since Covid. Overall, from an air service perspective, the airport is getting close to where it was before the pandemic in terms of flights, back to where it was in 2019.

“I would say it is positive for Bermuda on the whole.

“Anytime there is interest in doing something in aviation it generates a lot of interest, lots of questions come up on how it works and it educates Bermudians on what it can provide for the island.

“There are more avenues for people to get involved in the aviation industry and having locally based airlines is good for Bermuda as it raises the visibility of the island.”

Mr Dunstan said earlier that the international sanctions imposed on Russia at the outset of the invasion of Ukraine had a “catastrophic” impact on the BCAA, resulting in an 85 per cent reduction in its income.

He said that while the launch of local businesses in the aviation space has been a welcome boost, the authority has a long way to go to recoup that revenue.

“Every penny counts; it helps to reduce our deficit, but it would take a lot of those to make up for what we lost with the Russian aircraft,” he said.

MalaikAir, a foreign operator, recently revealed plans to create a direct route to Bermuda from Ghana, which could elevate Bermuda’s status as a transit hub.

Mr Dunstan said that too could provide a boost for the island but emphasised that proper market research is an essential component to success.

He added: “If someone thinks there is a market, they put together a business plan and do market research. When they get to the point they can make a go of it, they reach out to us.

“You have airlines that are not registered or certified here and we issue them foreign-operator permits. It is more work for us as we charge a small fee for the permissions for the permit but there is little impact.

“We always encourage them to reach out to us early on and find out what is required from a regulatory perspective.

“Market research is key — knowing that it can be sustainable and that the market will support it. Sometimes people think it’s a good idea and do it without doing the research, investigation and groundwork.

“It’s an interesting concept, not one I had thought of before. Ghana could be a good opportunity.”

Richard Nwaobi, the founder of MalaikAir, told the Gazette in an exclusive interview this month that after carrying out market research and a feasibility study, it was determined that there would be high demand for the route, which would also connect passengers to central and western African destinations.

Mr Nwaobi said that the plan is to use a Boeing 767-300DR, which can carry about 200 passengers in four classes: first, business, premium and economy.

He believed that two to three flights per week were possible.

Mr Nwaobi revealed: “The business has been created, and we are working on final regulatory details. We are also looking for a final round of financing.”

Mr Dunstan said last week: “Once foreign operators are certified from their homeland, we issue them a foreign-operator permit, which can usually be done within a day as long as all the documents are submitted.

“For a large operation like MalaikAir, it might take longer to get documents reviewed.

“Their test flights are done in their homeland and we would look to see if they have their air-operation certificates, look at pilot qualifications and various documents to make sure they are certified to operate what they are planning to operate.

“We also look at making sure they have proper insurance coverage.”

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Published January 22, 2024 at 8:00 am (Updated January 22, 2024 at 6:42 pm)

Aviation watchdog optimistic about local air services boost

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