Airport:--- Tension is raising at the Princess Juliana International Airport (PJIAE) with the Airport Concessionaires who just recently formed an association (ACA) and the airlines that are operating at PJIAE. SMN News has been reliably informed that several concessionaires owe PJIAE thousands of dollars due to the high operational cost and double taxation. According to one government official, the concessionaires owe PJIAE over $14 million dollars. Sources within the airport said a closed door meeting was held with the Management of the Airport and all airlines operating at PJIAE early last week who gave PJIAE an ultimatum to either reduce their operational cost or they will pull out of St. Maarten.As for the concessionaires, SMN News learned that at least three companies received termination letters from the airport because they are protesting against the high operational cost and double taxation. Some of the concessionaires, they said, owe PJIAE anywhere from two to five hundred thousand dollars each over the six year period they have been operating there. One of these concessionaires that owns a salon is contemplating mortgaging a parcel of land she owns to pay off her debts in order to get her contract renewed, yet this person has no guarantee that her contract will be renewed next year because there are certain clauses in the contract that are against the concessionaires. According to the information provided to SMN News, at least two retailers closed their shops last week, they are Diamond International and Last Mango in Paradise, while one of the outside units selling phones and other gadgets closed on Tuesday June 26, 2012. SMN News further learned that two other businesses received termination letters recently from PJIAE management. It should be noted that all the companies that have since closed shops at PJIAE owes the airport large sums of monies.
They said Windward Islands Bank closed their doors at PJIAE while RBTT now RBC has refused to sign a contract with PJIAE even though they are the ones that financed the reconstruction of PJIAE because of the high operational cost. The source said that the former government who placed Labega in the Director's seat were planning to bring in a particular Mexican company to build a high-end mall and discussions with the company are still ongoing. "What we are seeing in this one year contract shows that PJIAE management is making room for the Mexican company to take over by next year June since they are holding the concessionaires as hostages." They said that even though these concessionaires had their contracts since PJIAE inaugurated, the new Managing Director has in the new contract that PJIAE can put the units up for bidding within six months of the renewal of the one year contract.
When asked by SMN News if any of the concessionaires or the ACA approached government with their concerns, they said that there is a clause in their contract that forbids them from speaking to anyone about their contracts and dealings with PJIAE. However, the source said that the ACA might go as far as shutting down PJIAE on one its busiest days if all the concessionaires agree to stand together and fight back. SMN News learnt that the ACA's lawyer has sent PJIAE a letter recently to inform them of their intentions. The concessionaires are demanding that the contract be revised and the operational costs be reduced as of July 1, 2012.
They said that while there are 30 units at PJIAE, there just over 20 of them that are operational and the majority owes the airport thousands of dollars. "We are not given the opportunity to pay our bills and the loans that we took to open up shop at PJIAE." One source said that excuse of the PJIAE Management is that they are bringing in an outside company to conduct an assessment of the operational cost that the businesses are complaining about.
The source said that PJIAE's new Managing Director Regina Labega now wants to give the remaining concessionaires a one year contract beginning July 1, 2012 even though they were not properly notified and no consideration is given to the loans they all took out to open shop at PJIAE. What is scary for the concessionaires who received these one year contracts is that they have to give PJIAE six months notice that they are interested in renegotiating the renewal of their contract, while the previous contract states that PJIAE must give the concessionaire a 30 day notice of their intention whether or not they will renew the contract and to date none of them have received any such notice even though their contract will end June 30, 2012. SMN News understands that the concessionaires that are in this precarious position are the retailers while the liquor stores have some special agreements with PJIAE.
According to reliable information provided to SMN News, the concessionaires have been complaining for years, they said they met with the former Director of PJIAE drs. Eugene Holiday on several occasions and complained about their struggle and he never did anything but attend the meetings. One of the concessionaires said that the matter worsened since Regina Labega took over because she has refused to attend any of the meetings they invited her to. "We invited Labega to six meetings and she only attended one." The concessionaires who spoke to SMN News on the condition of anonymity said that they are subjected to pay rent even though they are the ones that built their units by installing tiles, electricity, telephones, and other utilities to the units. Furthermore, each concessionaire is hooked up to PJIAE micro-system and they are forced to pay a percentage to PJIAE depending on their gross sales. Even more disturbing, these vendors also pay the government Turn Over Tax (TOT) to PJIAE and now they also have to pay the same 5% TOT to government via scheduled D report.
SMN News made several efforts to reach Director of PJIAE Regina Labega on Tuesday but she could not be reached by phone. SMN News further learnt that the Deputy Prime Minister William Marlin will be meeting with Labega to discuss the concerns of the concessionaires and to make sure Labega does what is in the best interest of St. Maarten. Marlin also could not be reached for a comment Tuesday night.
