Dutch Government rules out short-term fare relief on Saba and St. Eustatius flights

THE HAGUE--The Dutch government does not intend to introduce short-term measures to reduce the high airfares between St. Maarten and the Caribbean municipalities of Saba and St. Eustatius. In written replies to questions from MPs Van Dijk and Van den Brink of CDA, Minister Robert Tieman said the government wants to wait for the possible introduction of a public transport instrument, a route expected to take at least two more years, and only if funding can be secured.

The minister’s responses frame the St. Maarten–Saba–St. Eustatius air link as a constrained market rather than a normal competitive route. The government agrees with the assessment referenced from the SEO Economic Research report “Impact PSO Windward Islands” that the connections operate in a small market context, with a single provider and no fully equivalent alternative. Accessibility is currently maintained through multiple daily flights and a ferry service operating between the islands.

How the Netherlands distinguishes European island connectivity from the Caribbean context

In outlining how the Netherlands safeguards essential connectivity elsewhere, the minister pointed to the approach used for the Wadden Islands, where passenger transport is secured through concessions. With existing concessions set to expire, the Ministry is preparing new concessions effective in 2029, guided by principles described as reliable, frequent, and structural, future-proof, a pleasant travel experience, and affordable and manageable. The House was informed of this approach on September 22, 2025.

For the Caribbean part of the Kingdom, the minister described the public interest primarily as ensuring residents can travel to, from, and within the Caribbean Netherlands under reasonable conditions. In this context, the government views aviation policy as the principal instrument, with ferry travel also playing a significant role in overall mobility between the Windward Islands.

PSO and PCA described as the main intervention tools, with funding unresolved

The minister said a direct comparison between maritime transport to the Wadden Islands and air transport for Saba and St. Eustatius is not appropriate because the systems differ in nature. For the Caribbean Netherlands, the government’s intervention model would take the form of a Public Service Obligation (PSO), designed to safeguard regular connectivity. In parallel, the minister referenced the Multilateral Aviation Protocol, which provides for implementing government intervention in the aviation market via a Public Service Agreement (PCA), an instrument that could set requirements on ticket prices and a minimum number of flights.

The minister stated that lower ticket prices on Saba and St. Eustatius would not cover airline costs, meaning a government contribution would be necessary under such an approach. If a PCA were to be established, funding would still need to be identified.

A PSO would also require a legal basis through amendments to the BES Aviation Act. The minister reported that the bill enabling a PSO legal basis was submitted to the House of Representatives on December 1, 2025. He noted that the bill establishes the legal foundation, while the practical design, interpretation, and financing would need to be set out through subsequent regulation following a concrete decision to implement a PSO.

“Only effective” lever identified, but no interim price reduction planned

The minister cited an evaluation of policy participation in Winair, stating it concluded that a PSO is the only effective mechanism to reduce ticket prices. Based on that conclusion, he said the government does not see options to lower high ticket prices during the interim period before a PSO can be implemented. He added that implementation steps, including any PCA route, can only proceed after the legislative amendment enters into force.

The cost of a PSO remains a central uncertainty. The minister referenced a 2023 estimate by SEO that the required annual grant could range between $3.8 million and $7.6 million per year, and said these figures are currently being updated, with results expected in the second quarter of 2026.

Ferry subsidy and other accessibility measures

In the interim, the minister pointed to continued reliance on sea transport as part of the accessibility picture. The government has decided to allocate €1.5 million for 2026 and 2027 to continue and increase the subsidy for ferry services between St. Maarten, Saba, and St. Eustatius, while noting that the service has previously been found not viable without government support. No funding is yet available for the period after 2027.

The minister also said essential access to key services is addressed through other instruments, citing medical transport as an example, which is guaranteed via the Ministry of Health, Welfare and Sport through separate agreements on medical flights. In this framework, he explained that a PSO would be aimed specifically at regular flights.

Consultation with island administrations and next update to Parliament

The responses note that ministries remain in ongoing consultation with the public entities of Saba and St. Eustatius, covering issues such as aviation safety, compliance with international standards, and connectivity, including the specific routes under discussion. While the minister reiterated that no near-term ticket-price relief is foreseen, he stated the topic can be addressed within those consultations.

In addition to these discussions, the Ministry of Infrastructure and Water Management is updating the 2023 study on subsidy costs for a PSO. The minister said the House will be informed about the updated findings and possible government steps in the second quarter of 2026.

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