By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

WESTERN Air yesterday pushed back against suggestions the lease of its San Andros terminal to the Airport Authority was a politically motivated “bad deal”, stating such insinuation was “inaccurate and ill-intentioned”.

“There was no political basis or unscrupulous nature about this business transaction and any insinuation of such is inaccurate and ill-intentioned,” the airline said in a statement yesterday, asserting the government owes over $500,000 for more than a year’s rent.

The Bahamian-owned airline which has its headquarters in San Andros was responding to recent statements by Tourism Minister Dionisio D’Aguilar. During his budget contribution in Parliament last week, Mr D’Aguilar claimed the Christie administration had ordered the Airport Authority to enter into an “egregious” deal with Western Air to ease its terminal in San Andros to the tune of $205,200 per year. The deal, he said, was executed just days before the 2017 general election and Mr D’Aguilar suggested the move was motivated by special interests.

However, Western Air yesterday insisted it was the government which had sought to utilise the company’s private headquarters after the Ministry of Works in 2015 condemned the mobile trailers the government was using due to mold and asbestos. Further, the company claimed the government utilised its fully furnished facilities for two years without payment.

“In 2015, the Bahamas Government’s mobile trailers at the San Andros Airport were condemned by the Ministry of Works and Ministry of Environment for mold and asbestos. There were reports circulating of government employees being hospitalised as a result of the conditions of the trailers. Because of this, the Government contacted Western Air and requested to move the Bahamas Customs, Immigration, Civil Aviation and RBPF offices into the Western Air San Andros Facility urgently,” the company said.

“Western Air did not seek the Government as a tenant in its private headquarters. Due to the urgent need for the Government offices to move out of the condemned trailers, Western Air agreed to assist and negotiated a lease for multiple office spaces that would be provided immediately, fully furnished and inclusive of electricity, water and sewage, janitorial services and insurance. A lease, processed by the Attorney General’s office was executed and the Government moved its offices into the Western Air facility on March 2, 2015. There was no political basis or unscrupulous nature about this business transaction and any insinuation of such is inaccurate and ill-intentioned.”

According to the company, it had not been provided an advancement or any form of payment for rent for two years after the Government first occupied the Western Air San Andros Facility in March 2015.

“The first payment for outstanding rent was paid May 22, 2017 after the general election under the direction of Minister D’Augilar,” said Western Air.

“More importantly, the rental lease expired on March 2, 2018, after which the Government, including Minister D’Augilar specifically, requested to have the Government offices remain in the Western Air facility. The Government requested to stay in the Western Air facility as they wanted to explore other options and thus opted to be billed month to month. Minister D’Augilar and Airport Authority chose for the offices to stay in the Western Air facility for over one year after the expiration of the lease and recently moved the Government offices back into mobile trailers in June, 2019,” Western Air said.

The company noted the Government was well within it’s rights to vacate the Western Air facility after the lease expired on March 2, 2018, however did not.

“Western Air sent a request to vacate by October 2018 due to no lease being renewed, however, this request was ignored. Airport Authority provided notice that the Government offices would be moved out by March 2019, however they continued to occupy the space for months thereafter, on a daily rate, without lease or alternative arrangement. The rental costs was clearly not the most critical issue, considering that no payment has been provided to Western Air for the rental spaces for over a year with a balance of $538,332.62 as the Government occupied the multiple office spaces up to June 2nd 2019, as mentioned above. This has not been an issue as Western Air has an ongoing working relationship with the Airport Authority.”

The company claims it has provided Government a proposal for the option of free rent, granted it be permitted to redevelop the San Andros Airport by constructing a new government terminal and resurfacing and lengthening the runway in exchange for the opportunity to manage the airport thereafter.

“Western Air was advised this option was not chosen by the Airport Authority. San Andros is Western Air’s Headquarters so its interest in the betterment of the San Andros Airport is very clear. The Government’s decision to move the San Andros Airport back into mobile trailers is a few steps back from the goal of providing Andros with an international standard airport, which it deserves. However, Western Air should not be used as a scapegoat or distraction for this decision, as our rental arrangement was a simple transaction voluntarily entered into and continued by the Government. We look forward to more progress at the San Andros Airport,” the company said.