Beautiful Virgin Islands

Tuesday, Jun 24, 2025

VI Gov’t successfully defends $10M lawsuit by BV Airways

VI Gov’t successfully defends $10M lawsuit by BV Airways

The Government of the Virgin Islands has successfully defeated a claim worth in excess of $10 million from BV Airways, which was contracted by the now ousted National Democratic Party (NDP) Government to connect Miami and Tortola with direct flights but failed to deliver on the project despite receiving some $7.2M of taxpayers monies.

Following a seven-day arbitration in March 2021, an arbitration award was handed down today, May 13, 2021, a press release from Government Information Service (GIS) stated.

Arbitrator rejected all claims against VI Gov’t


It said the Arbitrator rejected all claims made against the VI Government by BV Airways Inc (“BVIA”) and Colchester Aviation LLC (“Colchester”).

In particular, according to the press release, the Arbitrator concluded that the Government of the Virgin Islands properly performed all its obligations in relation to the Project; and that it (Gov’t) did not breach any of the terms of the Framework Agreement.

The Arbitrator said Government was entitled to terminate the Framework Agreement in November 2017 and there was no basis at all for the allegations of dishonesty or fraud made against the VI Government.

In addition, there was no basis for the allegation of defamation and no breach of any obligations of confidentiality by the Government of the Virgin Islands, the Arbitrator concluded.

The Government of the Virgin Islands has also been awarded its costs of defending the fraud and defamation claims which, according to Government, were described as ‘frivolous’ following cross-examination of individuals connected with Colchester and BVIA at the March 2021 hearing.

The Government of the Virgin Islands entered into a Framework agreement with BVIA and Colchester in 2015. The Government advanced $7 million to assist in the startup of the project and BVIA and Colchester undertook to provide a direct airline service between Miami and Tortola; however, this did not materialise.


‘Important victory for people of VI’- Premier Fahie


Commenting on the findings of the Arbitration Award, Premier and Minister of Finance Honourable Andrew A. Fahie (R1) said, “This is an important victory for the people of the BVI. Despite being provided with significant public backing, the parties behind BV Airways failed to get a single commercial flight off the ground or to repay any of the public funds invested. This ruling ensures that no further funds will have to be paid to these parties.”

Premier Fahie added, “I want to assure the people of the Virgin Islands that your Government will leave no stone unturned in its pursuit of the recovery of the sums paid to Colchester, BVIA and individuals connected with those companies. We are also seeking to recover the costs incurred in defending the wholly unjustified claims brought in this arbitration.”

He further stated, “Anyone legally responsible for the BVI’s loss will be held to account to the extent that the law permits; we will now move to the next phase of our recovery strategy, having successfully defended this claim.”

Premier Fahie explained that as a result, this is a very important victory for the people of the VI, adding, “The BVI Government will not have to make any further payments to BVIA and Colchester in relation to the failed Project.”

The now ousted National Democratic Party (NDP) government, led by then Premier Dr D. Orlando Smith (AL), had invested some $7.2M of tax payer's money into BVI Airways for direct flights, which never came to a reality.


Counterclaim dismissed…but not the end!


A counterclaim by the VI Government was; however, dismissed but it plans to pursue a civil claim in the VI courts, based on the advice of the Arbitrator, to recover damages and losses suffered relating to the failed project.

The Government of the Virgin Islands was represented at the arbitration by George Spalton QC & Marie-Claire O’Kane of 4 New Square, London; and Martin Kenney, Andrew Gilliland, Andrew Blackburn and Hakim T. Creque of Martin S. Kenney and Co, Solicitors.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
×