Government paid out approximately $1.9 million to airlines over three years when they failed to meet their revenue projections.

Parliamentary Questions answered on Monday in the Senate revealed the minimum revenue agreements Government entered into with airlines flying to Bermuda dating back to 2007.

Between November 2007 and March 2008 US Airways failed to meet its revenue target for a Washington DC flight to the Island, resulting in Government paying the airline $952,300 for the six-month period.

In a written response to the questions Junior Tourism Minister Marc Bean stated: "As an added incentive during what was a very uncertain time for the industry due to the growing fuel crisis, the Government agreed to waive landing fees for the period."

Between January and March 31 2008 Government entered into a partnership agreement to guarantee 17 JetBlue seats on flights from JFK Airport, in New York, to help ensure a 75 percent load factor. This meant Government was liable to pay the airline its revenue shortfall of $222,669.

The JetBlue Boston service also failed to reach its revenue target between May and July 2009 , which resulted in Government paying them $195,800.

"Jet Blue is extremely pleased with its New York and Boston services and is hoping to build its seasonal Boston service to year round. The Department of Airport Operations is working closely with the airline to bring that about," said Sen. Bean.

In 2008 Government paid more than $500,000 to United Airlines for its revenue shortfall for its seasonal Chicago service.

Sen. Bean stated: "2008 represented the third successive year that the load factor for this flight increased, however, due to severe fuel crisis that year, the operating costs escalated resulting partly in the airline failing to meet its net revenue target. Accordingly, the Government was liable to pay the airline $560,000 to cover the shortfall."

A revenue agreement was made with American Airlines for its Miami flight however it met revenue targets and Government was not required to pay out any money.

This year,Government has agreed to pay $1.5 million if the American Airlines Miami flight does not meet its revenue target. However, Government added that they have reached their target every year since 2004.

Sen. Bean wrote that he was unable to provide answers on the WestJet Toronto agreement as it has yet to be approved by Cabinet.