The government of the British Virgin Islands has notified BVI Airways that it considers it in breach of its contract to operate direct flights between the islands and the USA. The government had provided the airline USD7.2 million in subsidies to enable to being services. Although it had received all the necessary authorizations to begin flying from Tortola to the USA, BVI Airways never announced a start date for the services. In July, the airline announced that a shortage of cash had forced it to lay off its flight crew. Its two Avro RJ100s, VP-LWW (msn E3274) and VP-LOS (msn E3282), are currently stored at Summerside. VP-LOS had already been there for maintenance by Tronosjet. VP-LWW was initially stored at Fort Lauderdale following the end of its contract with Sunrise Airways, but joined her on 26 August.
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