Cayman Airways Limited

Order 04-10-04
OST-03-14296 - Cayman Islands-US

Issued August 9, 2004 | Served October 13, 2004

Order Issuing Amended Foreign Air Carrier Permit

In this order we are issuing Cayman Airways Limited, a foreign air carrier of the Cayman Islands, an amended foreign air carrier permit to engage in scheduled and charter foreign air transportation of persons, property and mail between United Kingdom (Caribbean) points and the United States.

Cayman Airways has been dependent on its government to allow it to meet its financial obligations and continue as a going concern. For calendar year 2001, Cayman Airways reported total assets of $19.1 million, total liabilities of $41.2 million, and owners' equity of $(22.1) million. For calendar year 2001, Cayman Airways reported an operating loss of $10.8 million. For calendar year 2000, Cayman Airways reported total assets of $30.4, total liabilities of $38.0, and owners' equity of $(7.6) million. For calendar year 2000, Cayman Airways reported an operating loss of $10.9 million. In spite of its current financial condition, we note that the record indicates that the government of the Cayman Islands has indicated that its current policy is to continue to support Cayman Airways for the foreseeable future through annual subsidy, overdraft protection, loan guarantees, and letters of credit. In recognition of Cayman Airways' importance to the Cayman Islands, the government of the Cayman Islands has agreed to provide Cayman Airways with a non‑refundable operating investment of $8.3 million dollars for the current calendar year.

By: Karan Bhatia