The provincial government is clarifying the terms of a leasing agreement for hangar space at St. John’s International Airport.
PC Party Leader Tony Wakeham first raised the issue in the House of Assembly last week, asking questions about what they had heard was an eight-year contract to lease hangar space at the airport at a price of $1.
In a statement to VOCM News, the Department of Transportation and Infrastructure says Hangar 3, which is owned by the Airport Authority and leased to the province, has historically been the St. John’s base of government air services. However, the agreement in question dates back to 2005.
At that time, they say it was determined that not all the space in the hangar was needed, and an agreement was reached with PAL to rent the space for $400,000 a year.
That remained in place until 2017 when government and PAL agreed to move things around and exchange hangar space. A similar situation played out in 2023.
In both cases, the cost to exchange spaces was $1, but both parties are responsible for their leases with the St. John’s International Airport Authority.
The term of the current agreement between PAL and the province is for eight years.
When asked about the situation last week, Minister John Abbott said the agreement is being reviewed, however it was necessary to sign the current agreement.