April 17, 2003 – Senate President David Jones presented what he termed a "win-win" solution Wednesday to the Port Authority's need for additional revenues, a need which prompted its increase in landing and passenger fees, which has led to a growing toll of airline service cutbacks and cancellations.
The full Legislature passed Jones's proposal Wednesday to provide a no-interest $3 million loan to VIPA to shore up its finances and allow it to rescind the fees. The money would come from the Insurance Guaranty Fund. Although dipping into that fund has caused objections from insurers in the past, Jones said he sees no such concern now, as the money is only a loan.
"We are simply giving them the tools," Jones said. "It's a stop-gap measure to give them leverage in reconsidering their position" on the fees.
The measure was among various amendments attached to a bill appropriating $250,000 for repairs to the historic marketplace bungalow in downtown Charlotte Amalie that collapsed on Tuesday.
Jones said he started working on the issue in February, when VIPA implemented the 25 percent increase in landing and passenger fees at the St. Thomas and St. Croix airports.
In the face of strenuous objections from the territory's hotel associations and chambers of commerce as well as the airlines, VIPA officials have held press conferences and met with airline representatives but have steadfastly maintained that it agency cannot function without the increase in fees, which it says will still leave it with a $2 million deficit this fiscal year. (See "VIPA board stays firm on airport fee hikes.")
In the wake of the increases, if not totally because of them, American Airlines discontinued its counter operation on St. Croix on Tuesday and will do the same on St. Thomas May 1. Its ground services will be contracted out to American Eagle, which, meantime, has announced plans to discontinued service between St. Thomas and St. Croix on May 1. (See "American Eagle axing St. Thomas-St. Croix links.")
Jones said he had been in discussions with VIPA's executive director, Darlan Brin, and his finance staff "for several weeks." Jones said he contacted Brin and offered to help. "I appreciate the financial constraints the authority is facing," he said. "I moved immediately when I heard the airlines were changing plans."
Jones, a Crucian, said he was especially moved by St. Croix's plight. "The idea was to give the Port Authority a kind of bargaining ship in enticing the airlines, especially on St. Croix," he said.
He said he also discussed the issue with Gov. Charles W. Turnbull, "primarily at the Seatrade conference last month." He said the governor "agreed in principal with what I proposed. It's a loan; it's not a grant."
Turnbull, Jones and officials of VIPA, the Tourism Department and The West Indian Co. attended the 18th annual Seatrade Cruise Shipping Convention in Miami Beach in mid-March.
Brin was not available for comment Thursday, a government holiday.
The amendment, along with the others passed by the full Senate Wednesday, now goes to the governor, who has 10 days in which to sign or veto the measures, or allow them to become law without his signature.
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