Silver Airways has been banned from flying to Anguilla this winter season after filing for bankruptcy without paying outstanding fees to the territory exceeding US$100,000.
The Government of Anguilla and the Anguilla Air and Sea Ports Authority (AASPA) said the decision was made after the company failed to settle the debt despite multiple attempts for resolution.
A press release explained that a notice of ‘Immediate Revocation of the Winter 2025 Seasonal Permit’ had been issued to Silver Airways on 14 January and was effective on 15 January.
The financially struggling airline, which operated a route between Puerto Rico and Anguilla, filed for bankruptcy on 30 December, 2024.
The company said at the time, the decision would enable them to secure additional capital and undergo a financial restructuring, ultimately strengthening their position as a competitive airline.
Prior to this, the Anguillian government had made “numerous unsuccessful attempts” to settle the outstanding debt of $103,549.15 which Silver Airways has accrued from May 2023.
On 3 September, 2024, the airline was informed that failure to settle the debt, or part thereof would implicate the grant of the seasonal permit to enter and operate within the territory.
“Regrettably, Silver Airways has since either failed, refused and or neglected to settle the outstanding sums before they determined it necessary to file for Chapter 11 Bankruptcy,” the press release said.
The company has now informed the government and AASPA that it is not legally permitted to make payments or sign repayment agreements and are thereby incapable of settling the debts.
Silver Airways has “failed, refused and or neglected” to provide the government with any further information concerning the bankruptcy and the extent of its reach and operation, the press release said.
It added that the company seeks permission to continue its operation within Anguilla without any requirement to pay the debt it has already accrued and will accrue to AASPA and private stakeholders.
“Consequently, the allegations raised by Silver Airways that the Government of Anguilla seeks the violation of US Law, are false, unmeritorious and without legal force,” the press release continued.
It said the government’s decision to refuse an entity from operating within the territory in circumstances where the entity is incapable of satisfying present and future debt obligations is its “absolute right”.
“While this complicates the resolution of the debt, AASPA remains in an untenable position and cannot continue to permit the operations of Silver Airways without compensation,” the release said.
“This not only sets an unfavourable precedent for aviation stakeholders but also impacts wider government operations and the tourism sector.”
The Government of Anguilla and the Anguilla Air and Sea Ports Authority said they remain open to revisiting commercial arrangements in the future.
