PHILIPSBURG:--- The Dutch Government has decided to come to the aid of WINAIR by granting them a three million dollars load ($3M). WINAIR is the only airline that travels from St. Maarten to Saba and St. Eustatius from St. Maarten.
According to a news article published on Koninkrijk. nu its states that the Government of St. Maarten requested the assistance of the Dutch Government on behalf of WINAIR. The building owned by WINAIR located at the Princess Juliana International Airport (PJIAE) serves as collateral for the loan for a period of 18 months which can be extended to six years.
The published article states that with the loan the Netherlands wants to guarantee air connection to the Windward Islands. Due to entry restrictions and the reduced demand due to the Coronavirus, the connection with the Dutch Caribbean municipalities are at risk of coming to a standstill should the airline file bankruptcy.
According to the article, WINAIR continues to lose money due to the lack of flights while its expenses continue.
Requirements
The main requirement for the loan is that WINAIR must maintain its air link between the Dutch Caribbean municipalities namely Saba and St. Eustatius, for the duration of the aid with at least two flights per day once COVID-19 restrictions are lifted.
In addition, WINAIR may not pay any bonuses to its directors or supervisory directors and may also not distribute dividends to its shareholders as long as the loan has not been repaid. With regards to the mortgage loan, a first mortgage right is also established on all WINAIR real estate. A market interest rate of 4.41% per year is payable.
