The dispute between Bermuda Aviation Services and Government looks set to rumble on into next year with a date yet to be set for an arbitration meeting to resolve the matter, The Royal Gazette can reveal.

The issue centres around what BAS claims to be a breach of exclusive rights to provide private jet services at LF Wade International Airport and, together with its subsidiary Aircraft Services, the company filed a writ against Premier Ewart Brown, in his capacity as Minister of Transport, as well as Attorney General Phil Perinchief.

BAS CEO Kenneth Joaquin maintains that his company's exclusivity deal was extended to 2014, but competitor Sovereign Flight Support was given permission by Government to offer a rival private jet service.

And, after the matter was set down for arbitration earlier this year, it looks like there is no end in sight until 2008 at the earliest.

"I was definitely hopeful this would be resolved this month," said Mr. Joaquin. "But, unfortunately the start of the arbitration is moving slowly and nothing is likely to be decided until early next year.

"The two arbitrators have recommended a third and they have to sit down and come to a consensus.

"So, for now, we are still in limbo."

BAS won the exclusive right to offer private jet services through an open tender in 1997 and the deal was extended through 2014 four years ago, according to Mr. Joaquin, with his company investing almost $800,000 in improving ramp surfaces and facilities.

Despite the issue still being ongoing, Sovereign has continued to convert a former US Air Force building on Southside into a private jet passenger terminal.

The building, which is known as 'Carter House' and is located near to the Southside Cinema and Pizza House on Southside Road on the perimeter of the airfield, has its own 275,000 sq ft apron area where private jets can be parked. In addition, there are 13 car parking spaces next to the new terminal.