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It's up to Bermuda not the airlines to increase the numbers of people getting on those flights.Jurisdictions like Bermuda with these minimum revenue guarantees have to hope their marketing will bring in the people.Bermuda is 568 miles east of North Carolina (with a daily flight), 693 miles south east of New York (with daily flights), 729 miles south of Nova Scotia, 770 miles south east of Boston (with daily flights), 788 miles north east of Nassau (no connection by air but via the USA), 1115 miles south east of Toronto (with daily flights), 1290 miles north of Puerto Rico (via the USA), 2055 miles from Winnipeg (via Toronto) and 2996 miles from London, England (a daily flight).Small islands and countries not attracting a million or more visitors every year have a challenge getting flights.Such deals are understood to be common elsewhere when facing similar shortfalls.Cutting deals with airlines is not optional, it's either that, or lose the route.
Previously known as the Bermuda Department of Civil Aviation, which was established in 1931, the new BCAA became a newly formed Authority on October 1st, 2016.
It began flying in UK in 1919 as Daimler Air Hire, then Daimler Airway.
Handley Page Transport was added to the stable, then Instone Air Line and British Marine Air Navigation (BMAN).
Bermuda has no international regularly scheduled airline of its own - although this was not always the case - see Bermuda's Aviation Pioneers.
The last one was Eagle Airlines (Bermuda) Ltd in the late 1950s.
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The payouts are part of the cost of doing business.