A bureaucratic snag was among reasons why island-based airline BermudAir has operated without a licence since its inception, The Royal Gazette can reveal.

Even after that roadblock was cleared last year, the company was refused an air transport licence by an independent panel.

The airline can continue its services after it was granted an exemption from the licence — effective through next year — by the Minister of Tourism, Transport, Culture and Sport.

BermudAir said that the ATL was a feature of legacy legislation that required changes to support “the operational realities of a commercial passenger airline”.

The company first notified the Government of its intention to apply for the licence ahead of the airline’s launch in 2023.

However, a ministry spokeswoman said that an independent panel of adjudicators required to rule on the application could not be formed at the time because of a lack of qualified officials.

A panel was finally formed last year and the airline applied for an ATL at the end of 2024 — only for it to be refused on March 21.

The ministry and BermudAir refused to say why the application made last December was turned down.

A ministry spokeswoman said: “While the panel did not make its reasons public, a full statement of reasons was provided to BermudAir in accordance with regulation 11(1) of the Civil Aviation (Air Transport Licensing) Regulations 2007.”

She explained: “When BermudAir expressed its intention to apply for an ATL in 2023, it was unfortunately not possible to convene a panel as outlined in the [Civil Aviation (Air Transport Licensing)] Act.

“This was because one of the positions essential to the panel's composition — the Director of Tourism — was no longer in existence.

“Additionally, the Act did not include any provisions allowing this role to be filled by another individual or office, presenting a procedural challenge.”

The spokeswoman said that, because of the oversight, BermudAir was given exemptions, the first of which took effect on August 30, 2023 and was valid until August 31, 2024.

She said: “The second order came into effect on March 5, 2024 and remained valid until October 31, 2024. The circumstances mirrored those of the initial order.

“The third order came into effect on October 30, 2024 and remained valid until April 30, 2025. BermudAir was not prepared to apply for the ATL.

“The fourth order took effect on April 30, 2025 and will remain valid through December 31, 2026.

“The reasoning behind this decision is that BermudAir submitted a notice of appeal to the minister, who determined that granting BermudAir additional time would facilitate their opportunity to reapply for an ATL.”

Amendments to the Act last year meant that the panel make-up was changed so that it included the chief executive of the Bermuda Tourism Authority board.

The changes also allowed the minister to appoint an alternate member if one was unavailable when the group was required to perform its functions.

A BermudAir spokeswoman confirmed that the company was still free to fly between Bermuda and its hubs on the US East Coast and in Canada after being granted the exemption until the end of next year.

When asked why the company’s ATL application in December had been rejected, BermudAir declined to comment.

Its spokeswoman said: “The Air Transport Licence referenced is legacy legislation under the Civil Aviation Act 2007 that requires amendments to support the operational realities of a commercial passenger airline.

“Recognising this, the minister of transport issued, and has since extended, an exemption from having an Air Transport Licence.

“This exemption was granted in 2023 to enable BermudAir to launch operations and was later extended to support our continued growth.

“BermudAir remains committed to working closely with the Government to fulfil the spirit and intent of the legislation, which is ultimately to safeguard the interests of the travelling public.”

The Gazette also asked questions of the Bermuda Civil Aviation Authority.

According to the BCAA website, operators of any aircraft used for the carriage of passengers or cargo “must” hold an Air Transport Licence granted by Bermuda’s ATL panel if the flight is anywhere in the world and the aircraft is registered in Bermuda.

It added that an ATL was not necessary “if the flight is the subject of an exemption from the requirement to hold an ATL”.

The website said: “Exemption refers to an instrument made by the minister pursuant to section 8 (3) of the 2007 Act in respect of a flight of a description specified in that instrument or a particular flight or series of flights so specified.

“It must be understood that ATLs are granted by the panel and not by the BCAA.”

A BCAA spokeswoman confirmed that the organisation was not involved in the issuing of ATLs and directed the Gazette’s questions to the transport ministry.