BVI News

Airline being sold because of hurricanes, liabilities

A Seaborne aircraft. (Google Image)

Seaborne Airlines which services the British Virgin Islands and other countries across the region is being sold.

The company is being sold to United States-based airline Silver Airways.

According to Seaborne, the airline is being sold because of financial strain caused by Hurricanes Irma and Maria.

Most of the countries the airline services such as Puerto Rico, the British and United States Virgin Islands, Dominica, St Maarten were significantly impacted by the category 5 hurricanes.

“While the company’s business has enjoyed a remarkable recovery since the 2017 hurricanes, the financial stress caused during the recovery period coupled with legacy liabilities have made it necessary to seek reorganization protection,” said Acting CEO of Seaborne Airlines, Ben Munson.

Seaborne said the airline’s day-to-day operations will ‘continue as normal’ and will not be disrupted by the sale.

The company said it will also maintain its ‘codeshare’ partnerships that facilitate easy connections with other partner airlines.

Though financial stress from the hurricanes encouraged the airline to sell, Seaborne had entered into negotiations with Silver Airways months ago. It is said that the sale will result in the two airlines will combining fleets.

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  1. lol says:

    LMAOOOO!!! Sold? or Confiscated?

  2. Albion says:

    Not a good sign. Airlift into the BVI is under continuing threat of shrinkage. If the new owners decide those routes are not profitable enough, then they will go.

    In the meantime our Government is determined to spend hundreds of millions chasing some fool’s dream that major US carriers all want to fly direct into the BVI?

  3. Hmmm says:

    Something smells fishy with this.

  4. Reply says:

    The term ‘reorganization protection’ is normally used to describe filing for bankruptcy or chapter 11. Thus what appears to be going on here is the company has gone bankrupt and is being sold.

    A very large percentage of airlines either operate in the red or with marginal profits. It does not take much for these airlines, especially the smaller ones to fold when something happens that interfere with their marginal cash flow.

    Now, this report did not say if future services will be cut with the newely formed airline, but one should not be surprised if this happens and be prepared for it.

    The airline business is one of the toughest and most expensive to be in and operate, and many fail each year or consolidate because of financial issues. The casualty of the hurricanes continues with this news.

    • Smh says:

      It very funny that the people have the most to say and they dont work for the company!! People please keep you mouths shut if you dont know what is going on. I forget the BVI ppl like to down talk things.

      • Reply says:

        What kind of ignorant statement is this? It’s so silly, it really does not deserve a response. Does one have to work for Seaborne in order to have an opinion based on this news report? What world are you living in?

        No one is ‘talking down” the BVI as you allege. Perhaps you should take your own advise before making false accusations.

  5. Good deal says:

    Silver is a good outfit. They will improve the service unless one of the pocket lining banana republic officials put the squeeze on them, then they will leave the BVI like a drunken prom date at 4 am.

  6. Smh says:

    Yall got to much to say!!! Just shut up and let things take place

  7. Mad news says:

    How many airlines now, file ,sold or just pack up and leave the Virginislands.. this government still talking bout bigger run way while the boating companies asking for help .. these man blind or wha .. the money is in the ferry companies

    It’s a shame too because Mr. Smith know this , his father or wha ever he is too him has a boating company , nobody going to pay double the price to fly out of Tola and go Thur a branch of red tape in America immigrants customs line

  8. Smh says:

    While BVI struggles to make up there minds weather they need to expand the runway or not expand, other regional islands already expanded and reaping the benefits of tourism.
    Soon we will need to grow wings to get in and out of Tortola.
    Yes it mean divestiture, restructuring of company ;however doesn’t mean it’s all bad news.

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