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Govt. not paying Delta for service

Tuesday, December 27, 2005

The government of Antigua and Barbudas has not paid Delta Airlines any monies to operate its twice-weekly service to the island.
Minister of Tourism Harold Lovell clarified, while there was a risk share agreement in place, no cash has changed hands in the deal.
He said the Delta agreement is a performance- based contract and contained an arrangement through which both the government and the airline would share the financial risk of opening up a new route.
According to the agreement with Delta, the government provides a guarantee for 100 seats on each flight. This means that the country will be liable to pay for any shortfall below 100 passengers per flight. However, Minister Lovell noted that there is also a credit arrangement in place.

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