Flight 100, arriving Terrance B Lettsome International, from Heathrow London
Dickson Igwe - Saturday, January 21st, 2012 at 10:17 AM
Dickson Igwe
It appears the National Democratic Government is serious when it states that it is a regime with a listening ear. And that it fully understands the critical need to grow the Virgin Islands national economy, especially the twin pillars of tourism and financial services. That it comprehends the fact that growing the country’s economy is not an option, but a crucial national necessity.
It was therefore heartening to learn from an article in BVI News Online of January 20, 2012, titled “Discussions on airport extension to begin soon” that “consultations on proposed plans to expand the Terrance B Lettsome International Airport are expected to commence in February.” Honorable Deputy Premier, Dr. Kedrick Pickering, according to the article, was quoted as stating that “his Government sees the need to address airlift concerns as a priority.”
Earlier, Honorable Premier, Dr. Orlando Smith, announced Government’s intention to extend the airport during his budget address of January 17, 2012. He stated that extending the Terrance B Lettsome International Airport to enable commercial jets to fly nonstop directly to and from the eastern seaboard of the United States, and for corporate class aircraft such as the Gulfstream V to fly directly to Western Europe would have an impact on the tourism product and was “the single most important infrastructural project being introduced.” What a thing!
Ok, and whatever the dynamic of a new airport expansion project, this pilgrim’s only suggestion to power is this one: think big! This development will have ramifications for this country for decades to come. And do consider the various financing options, including private investment, whether it is national or international.
Furthermore, do allow the national conversation on this subject the time and leeway to enable every stakeholder, and that is everyone residing on these islands, a say in the development discussion, whether they may agree with the idea or not. Do bear in mind there are many who believe that the Anegada and even Virgin Gorda airfields are options worthy of consideration for airport development. Listening to the public is what Government in the Sunshine is all about. So keep up the good work gentlemen and women!
Now, this layman on all matters aeronautical, will safely assert that the issue of air and seaport development in these Mesmerizing Antilles has taken on the form of a most stimulating and informative public debate. One may even dare call it a fortuitous national conversation, and multifaceted narrative. This is an excellent rendition of local democracy and transparency, using the national press machine, especially the printed press, and online blogs as forum. Hopefully, the powers that be are taking note of the views of the ’man on the street:’ members of Virgin Islands community who will be impacted by any decision made on this most crucial of issues.
Another interesting epiphany is the fact that the port debate has become an epistle to sustainable development. It is a synthesis of some of the most intelligent views emanating from the national news media, whether it be the environmental state of Beef Island and Soper’s Hole, a rich contribution from the writers Trish Bailey and Marilee Meyers, or the more panoramic type writing on things economic, social, and even technical, of the likes of Edgar Leonard, Shaina Smith, William Walker and Benito Wheatley.
And one must not forget the delightful forays into the lofty and subliminal by exceptional writers such as Sandra Phillip Hodge and Verna Penn Moll; then, the interesting and stimulating narratives from the pens of Julian Putley, Pilot John Morrison, and the unrelenting and irrepressible Roger Harris.  There are many more excellent writers on the issues of social and economic development in the Virgin Islands, impossible to name in a short narrative. I apologize if I have omitted anyone!
But it is to Mr. Benito Wheatley this Observer turns. And an anonymous online blogger responding to a news article in BVI News Online written by Mr. Wheatley on January 5, 2012, titled “will the BVI grow in 2012 and beyond” gave a sweeping rendition of a hypothetical regional air route and airline choreography with the Virgin islands as source and terminus, or main embarkation and disembarkation point and geography.
That article also appeared in the January 5 edition of the BVI Beacon Newspaper. The online blogger stated that “instead of expanding the Terrance B Lettsome International Airport, a better step would be to re-establish the country’s own Air BVI to Antigua, St. Maarten, St. Croix and Puerto Rico.”
The blogger also suggested that the country “add a new route to Santo Domingo which would serve as another hub. That the Dominican Republic could link the Virgin Islands with all of the Americas as well as Europe,” an interesting proposition indeed, to which Mr. Wheatley responded, that establishing a National Virgin Islands Airline, although not an alternative to direct flights coming into Beef Island from major capitals and tourism markets, would be a good thing, if it contributed to the competitiveness of these Virgin Islands. A very intelligent assertion sir!
Mr. Wheatley on the other hand believes strongly, like this Observer does, that “direct flights are more attractive and desirable to travelers than connecting flights that are a burden after a long haul flight. “Mr. Wheatley further correctly determined that, “providing tourists with convenience of travel is a major factor in the competitiveness of a tourist destination.”
He went on to insist that consideration be given to “tourist markets of the future such as Brazil, China, and India, and how to route travelers from these faraway shores to the Virgin Islands.” That is an idea yours truly has been harping on for months! And he would further add Shanghai, Hong Kong, Taiwan, and South Korea; even Japan, Russia, and South Africa. These Antilles must tap into a new Asian and emerging economies dynamic that will affect global travel in ways yet unseen.
Now, the most important statement made by Mr. Wheatley was on a negative dynamic in regional air travel that could be described as the arm-lock US airlines hold on the Jurisdiction. He asserted that “American Eagle has cut back on routes between the US and Puerto Rico, which triggered cuts in flights between the Virgin Islands and Puerto Rico. Travelers arriving in San Juan in the mid afternoon now have to wait until 9.00pm for a flight to Tortola.”
Worse still, a person missing a flight to the USA because they came in late from the Virgin Islands, have the expense and inconvenience of staying overnight in San Juan. Yes, Mr. Wheatley is right in stating that “routing flights through sub regional hubs leaves the Virgin Islands exposed to risks that can have a negative impact on tourism.”
This big jet enthusiast could not have said it better than Mr. Wheatley when he went on to write that “having an international runway would give the Virgin Islands greater access to its major markets” and offer these islands greater negotiating power Vis a Vis major airlines and travel groups.
In another vein, on whether or not mega five star facilities are requisite for these Antilles, another aspect of the sustainable development debate, Mr. Wheatley asserted that “the current hotels in the territory are not adequately equipped to handle large international conventions, conferences and weddings.” That “regional competitors that have such facilities have an advantage over the Virgin Islands.”
He rightly stated further that “the Virgin Islands have the potential of becoming a regional player if it possesses the requisite facilities.” He added that “a five star designation can serve as a selling point that would economically benefit the territory.”
Well said Mr. Wheatley. You are fully and clearly aware that five star resort developments, add an airlift capacity greatly increased by enabling large and powerful jet aircraft land in these Antilles, flying in from major population centers and markets, is the way forward for tourism.
To be continued
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13 Comments
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Looking at how the aerodrome is at Beef Island now; they may well have to blow up and island one way and another one the other way to meet the safety requirements that will be laid down for a “jet” with water hazards on both sides.
The US and UK regulators already said the the airport needs 500 more feet for those GV and the like to take off fully ruled. The current runway is long enough for one of the ERJ models to land (those are the America Eagle regional jets); which has the range from Miami but its the 500 feet problem there.
The first Question is are we talking about a 737 landing with around 200 people at a time or one of these regional jets that hold around the same at the current American Eagle ATR 72′s.
Also you have to think about how the airlines do business and plan their routes. Its cold and all about the figures, not just people on the, fuel and other costs. Plus the Government would have to sign an MRG with almost every carrier is the first few years. A minimum Revenue Guarantee; which means the teen if the plane is empty they will run the flight and the Government will have guaranteed a certain number of seats (usually over 60%) and will have to pay the airline for the difference.
Whatever happens I would urge the Government to immediately secure the airlift with the airlines we currently have coming in and increase their frequency; that is something they can do right away to get some impact. It would also be good if the VG Airport situation was sorted out and right now you have non airlines wanting to fly in there.
Event if it just that 500 feet they put one or go bigger those things are going to take a long time to get sorted out before they even start to build.
* Non Charter Airlines wanting to fly into Virgin Gorda
Some people also fail to realize that job creation and economic growth go hand in hand. We hear of the many young people who are unemployed. The Virgin Island’s(BVI)Economy has been stagnant for almost the last 10 years. New jobs can’t be pulled out the air (not substantial ones at least). They have to be created. And to me, the best way to do that at this point in time is by growing and “enhancing” our tourism product.
“The BVI is small pebble in a wide ocean with a small population and low economic activity. These factors are not highly favorable for attracting a long-haul, and point-to-point flights. It will be a heavy lift to do so. ”
This statement is somewhat of an oxymoron. This “small pebble” has one of the leading off shore industries in the “world”. So that kills your “low economic activity” right there. And let’s just say “for argument’s sake’ the our economic activity is low as you put it. Isn’t the objective of increasing the capacity of our airport to grow our tourism capacity (along with more hotels) and thus increase our economic activity???
Also, since when does the size of a population determine the “need for direct flights” IF YOU’RE A TOURIST DESTINATION!?! Whenever I fly through St. Thomas, the planes are usually full and about 95% of the passengers are TOURISTS. I agree a proper study needs to be done and the project will probably be expensive. But please, let’s keep an open mind before coming up with random reasons not to.
We need direct flights to the East Coast of the U.S at least (Mia, Atl, Chicago, NY). End of story.
Also Baltimore, Washington
I think that what you are staying does make sum sense and we need to take a closer look at what our government actually wants to do for the island people. By extending the airport i see it as a good thing for the long-term aspect of things but as for right now we need to look at the surroundings good example the hotels and other ports of entry to the Virgin islands.
Dickson, Thanks for the plug but I cant agree with you! Beds, berths, fuel. I’m afraid most small-minded locals will look upon this as THEIR WAY of travelling OFF the island, not the tourists coming IN! Same way they do when we talk about flights to SJU.
This could be a bigger white elephant than the hospital. Our economy cannot afford to do this and have it under utilised if the airlines dont come – and they wont if they cant get load factors, and they wont get those unless the large number of passengers needed have somewhere to stay. Expanding Anegada is all very well, but it is not a DIRECT flight to Tortola. It entails what could be an uncomfortable ferry ride, or another tiny plane ride to get here – defeating the whole object of the exercise.The airport in the Maldives is located on a separate island with boat and seaplane transfers to the resorts but their weather and sea state is more predictable than ours, and there are thousands of guest rooms available throughout the islands. Does anyone even know how many beds and boat berths we have now?
There goes the Anglophile again.
If we must have direct long-haul flights, a cheaper and more environmentally friendly option is to extend the Anegada runway northwards and expand the terminal. Anegada has more land to store fuel safely.
Have frequent (as demand dictates) air and sea shuttles to Tortola and Virgin Gorda. There may be a need for an an airport hotel for layovers in some cases but I’m sure this could be an opportunity for private investors.
This is a perfect opportunity to bring Anegada into the BVI economy as the extended runway can also bring large freight aircraft directly into the territory. I say do this thing in Anegada and let that island develop into our airfreight and long-haul passenger hub.
You talk about storing fuel on Anegada but have you stoped to think how that fuel will get to Anegada? A gasoline tanker canot get within a few miles of Anegada, are we going to take it off a tanker and put it on a barge and then think we will be competitive. Anegada is not the answer at all – and that is just one of the reasons.
Dickson, your articles are always educational, informative, and instructive. They create a platform for launching further probing and discussion. And this one is no exception. Nonetheless, I take a sightly different view on the feasibility of direct flight(s).
Without a doubt it is vital to our quality of life and our standard of living that the twin pillars of the BVI’s economy—tourism and financial services—be improved and sustained. These two competitive industries must be improved to help the territory differentiate itself and enhance competitiveness.Thus making the BVI a premier tourist destination, and maintaining its status as one of the top financial center in the world. Additionally, it must diversify its economic base. Moreover, infrastructure(road, air/seaports, water, sewerage, telecommunications, electricity)is a key cog in the development wheel. Improvements on the airside of TBL are needed. But how much?
True, how delightful and convenient it will be to hop aboard a wide-bodied, luxurious jet on a non-stop trip from Rio, New York, Newark, Miami, Boston, London, Paris, Madrid, Buenos Aires, Beijing or New Delhi and disembark at TBL in a few hours.
But how realistic is this? Would airline economics support direct flights? Is extending the runway to accommodate direct flights at this time the best use of scarce financial resources? Does the benefit of the extension out weigh the cost? What are the opportunity costs of the extension? Will the extension be a paygo or debt will be incurred? Are there other options that will satisfy the need? What is the environmental impact? These are but a few questions for the policy and decision makers to ponder.
In the interim, let’s take a quick peak at airline operations and airline economics. The airline business is cut-throat and highly competitive industry; profits are razor thin. There is a fix cost to every take off and landing. Moreover, the break even load factor (BLF) is a critical component on whether an airline start or continue on a route. The BLF comprises of two factors available seat mile(ASM) and revenue per passenger mile(RPM). With every take off, enough seats must be consistently filled with paying passengers to cover expenses above the break even point. And if it is cargo that is being transported, the cost of the cargo must cover the total operational expenses. Operating with a high BLF is key a contributor to many airline failures; airlines will not start or continue on a route with a BLK at or below break even. The reason is obvious.
The BVI is small pebble in a wide ocean with a small population and low economic activity. These factors are not highly favorable for attracting a long-haul, and point-to-point flights. It will be a heavy lift to do so.
Thus, the decision to extend must be based on need, practicality, and economics, particularly airline economics, not emotions. Nevertheless, a cost-benefit analysis is needed. This analysis must include discussions with major airlines.
Didn’t even read your dream story…
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