Business View Caribbean | September 2022

58 BUSINESS VIEW CARIBBEAN VOLUME 9, ISSUE 9 lease on the ticket counter and gate space to occupy an exclusive area. This model has evolved to a common-use concept in most airports and will be adopted in due course at the Terrance B. Lettsome International Airport. “As an Airports Authority we are increasingly focusing on non-aeronautical revenue to deal with the unpredictability of the airline business cycle, especially in the wake of the negative impact of the COVID-19 pandemic. The revenue generated from non-aeronautical revenue may very well determine the financial viability of airports in the BVI. Sources of non- aeronautical revenue include Rental Spaces: primarily to airlines – office space, counter space, VIP Lounges; Ordinary personnel – concessions – various stores, Jewelry, Apparel, Souvenirs etc., Restaurants, Eateries; FBOs (Fixed Based Operations) – Fuel Services, Hangarages; Beef Island TAXI Association; Various Fees – Landing, Departure Tax, FOP (Foreign Operators Permit), ADF (Airport Development Fee), FBOs, and Parking Lot.” BVC: What sort of competition exists in your region? Menal: “The Territory’s airports share a common catchment area with other international airports in the USVI and the Leeward Islands, some of whom enjoy direct flights to mainland destinations. Ever cognizant of this, the BVI has sought to place greater emphasis on Air Service access to partners and clients. Without this basic framework, general aviation would have fewer flying opportunities and more hurdles to our vital and shared mission of increasing access to and the quality of high end services. Moreover, our FBO partners compete vigorously with each other on service, price, and quality of facilities.” BVC: Which activities serve as the primary revenue drivers for the BVIAA operation? Menal: “Our income can be divided into two components: aeronautical and non-aeronautical. “Aeronautical revenue comprises the majority of the airport income and includes airline terminal space rentals, airline landing fees, and usage fees for the terminal, gates, services, and passenger counters. “Airlines are our tenants, paying rent for counter and gate space, storage facilities, hangars, offices, and maintenance facilities. They additionally pay for landing and parking fees, and to hold a Y