Camelia-Römer: “Financial requirements the same for all aviation companies”
WILLEMSTAD – The Minister of Traffic, Transportation and Spatial Planning, Mrs. Suzanne Camelia-Römer informs that her policy is based on laws and principles of good governance which entails cautious preparation and transparency.
All those who apply for a permit to start an airline in Curaçao must comply with the legal requirements stated in the Aviation Ordinance and the State Ordinance of February 15, 2005 to receive a permit to operate an aviation company.
To take away all the confusion that could exist, the Minister explicitly refers to article 6 of the State Ordinance Scheduled and Non-Scheduled Air Transportation (A.B. 2005, # 37), subsection 1, a and b, subsection 2 that directs to subsection B, which gives a specification of documents and information that need to be presented by the applicants.
Annex B specifies that a company that applies for an economic permit for the first time is obligated to submit, on the point of view of financial strength, a business plan, cash flow and liquidity for the first two years and particular specification of existing and future financial sources.
A transparent way to verify and check the documents submitted by a company is to demonstrate its financial strength based on particular specifications and detailed information about its current and future financial sources. This is for the government to seek council at the Central Bank on the validity of the submitted documents and to ask the government accountants (SOAB), who are those who analyze the business plan of the company, what is the amount of money needed, based on the business plan, which is necessary to guarantee its operations.
An Irrevocable and Unconditional Letter of Credit or a Bank Guarantee for the sum of money determined based on the company’s business plan gives clarity on the financial strength required by law. This is because the bank guarantees that the amount of money the company has at its disposal is enough to operate according to its own business plan. In the case of an Irrevocable and Unconditional Letter of Credit, the bank will ensure that the funds will be used only for its intended purpose and not something else.
This way those who request the economic permit can demonstrate their financial strength as prescribed by law, because a company that doesn’t have money or cannot have funds at its disposal, will not be able to start an airline. The bank must also be international and of good reputation. The Irrevocable and Unconditional Letter of Credit or the Bank Guarantee must be confirmed by the Central Bank.
Minister Camelia-Römer emphasizes that her policy is based on the laws of Curaçao, cautious preparations and transparency. The Minister has all the confidence in the rule of law in which all those who do not agree with the government can take legal steps.