Bermudians will continue to oversee airport operations through the Bermuda Airport Authority (BAA), a new Bermuda Government airport quango.
The Bermuda Airport Authority will provide the oversight of how the airport operations are performed, ensure quality standards are adhered to, and hold the Bermuda Skyport Corporation Limited (Skyport), accountable for their performance obligations and contractual obligations. The BAA will be responsible for the approval of regulated fees.
The Bermuda Airport Authority will take on the responsibility of selected retained Government services such as air traffic control operations, meteorological services, airport fire and rescue services and ground electronics, which are currently the responsibility of the Department of Airport Operations. Dedicated staff of the Bermuda Airport Authority will manage the contracts or MOU and ensure that the vendors of the retained Government services are accountable for the contractual terms and conditions outlined in the agreements. The Bermuda Airport Authority will also be responsible for identifying additional revenue generating opportunities.
The new Airport Terminal Building and the entire L.F. Wade International Airport complex will remain the property of the Bermuda Government. The vast majority of the staff from the existing Department of Airport Operations will transfer over to Skyport in their existing positions. They will continue to operate and maintain the new airport as they do today.
The Government of Bermuda
- Will continue to oversee airport operations through the Bermuda Airport Authority, a new Bermuda Government airport quango;
- Will be responsible for funding costs associated with the Quango, thus ensuring Skyport is held accountable to their contractual obligations and Bermuda is getting their value for money;
- Will provide an annual operating grant to the Quango. It is anticipated, the annual operating grant will be reduced overtime as the BAA implements revenue generating concepts or models;
- Will retain, air traffic control operations, meteorological services, airport fire & rescue services and ground electronics, also known as the Retained Government Services (RGS);
- Will retain ownership of the airport land and it would be leased to the developer by the Bermuda Airport Authority;
- Will lease existing airport land and facilities to Skyport for the 30-year term of the Agreement.
The Board of the Bermuda Airport Authority will include industry experts and seasoned professionals, all Bermudian. They will be tasked with ensuring the interest of the Bermuda Government and Bermuda are protected and Skyport and vendors are held accountable to the standards set out in their contractual obligations, as outlined in the various agreements and contracts.
The Bermuda Airport Authority (BAA)
- Will be an autonomous agency of the Government of Bermuda;
- Will be responsible for providing Retained Government Services and for generating additional revenues generating opportunities;
- Will oversee airport operations;
- Will regulate passenger fees and has discretion in approving increases in such fees.
Bermuda Skyport Corporation Limited (Skyport)
- Will be owned by Aecon (holding at least 35% of the equity), and other third party shareholders;
- Will design and build the airport;
- Will maintain and operate the airport during the 30-year term of the Agreement;
- Will not set fees and prices.