Winair getting a second loan of US $1.5 million (see related story) on top of the first one of $3 million with extended payment term is no doubt good news for the local airline and its employees, but also for Princess Juliana International Airport (PJIA) as its biggest client in terms of aircraft movements. Its importance to the destination’s hub function cannot be underestimated either.
For St. Eustatius and Saba, the carrier provides the only regular airlift, making its continuity essential to their populations. Ferry service recently started, but a trip by boat is different and takes longer than on a plane.
It might not be equally comfortable for everyone either, especially with high seas. As argued earlier in this column, these are two distinct modes of transportation that can complement each other.
While the Dutch government owns only 7.95 per cent of the company on behalf of the two islands, it has a huge stake in safeguarding their connectivity because they are part of the Netherlands. Providing financing to help the airline overcome the devastating effects of both Hurricane Irma and the COVID-19 travel crisis fits into that greater responsibility, especially considering the monetary problems facing St. Maarten as the main shareholder.
However, The Hague has also determined that part ownership in Winair is not the most suitable tool to ensure enough affordable flights, so the intention is to sell the 10,000 shares with a nominal value of NAf. 150,000 preferably to St. Maarten.
The latter would seem to serve little purpose, it seems, particularly because – other than vague plans for electro-hybrid flights – a viable alternative has not yet been identified. And if indeed a public service obligation (PSO) structure with requirements regarding rates and frequency is chosen for these routes, Winair should be given a fair chance to participate in the bid.
