The Government of Anguilla has not entered into a minimum revenue guarantee agreement with BermudAir, according to the infrastructure minister.
Jose Vanterpool’s statement came in the wake of public and political speculation on the terms of the arrangement with the Bermudan airline – which will soon start operating flights to the island.
In June, BermudAir announced the launch of AnguillAir – a new service offering direct winter flights from Boston and Baltimore to Anguilla, with Newark added soon after.
On 5 September, tourism minister Cardigan Connor touched briefly on the topic of the government’s agreement with the company during an interview on Radio Anguilla.
This led opposition member Haydn Hughes to issue a statement expressing concerns about a minimum revenue guarantee and asked the government to clarify the details.
“I join the people of Anguilla in demanding transparency…I specifically welcome clarity on this financial commitment,” he said.
He called the Connor’s limited disclosure “troubling” and said it “raises serious questions about accountability in the stewardship of public funds”.
Speaking during a government press conference on 15 September, Vanterpool said he wanted to make it “abundantly clear” that the government has not entered into any minimum revenue guarantee.
A minimum revenue guarantee is a financial arrangement where the sponsoring party promises to ensure the airline earns a specified minimum amount of revenue on a particular route or service.
Vanterpool revealed that the airline had presented two options for a minimum revenue guarantee as part of the contract, but the government made a “hard red line” and declined.
These included options to subsidise the airline up to a minimum number of seats per flight, or to provide a commission for every seat sold.
Meanwhile, the minister said the government is in negotiations with various partners to cover the cost of 20 seats on AnguillAir that cannot be sold for logistical reasons.
Vanterpool estimated this cost to be about $667,000 for the 2025 to 2026 winter season, and said public funds would contribute to some of this.
Anguilla Focus will examine the details of this agreement in an upcoming story.
