Flyer tenants fail to get compensation

Source : Straits Times - 12 Feb 2009

THE Singapore Flyer has rejected a demand for compensation made by a group of tenants at the attraction.

It also denied claims made by the group that the Flyer was no longer viable or profitable.

The tenants had sent a lawyer’s letter to the Flyer’s management last week alleging breaches in their tenancy agreement.

In it, they claimed human traffic to the area had become ‘non-existent’ as a result of a breakdown on Dec 23 last year which left 173 people stranded in mid-air for up to six hours, and asked for compensation. They did not specify what they wanted.

In a reply yesterday, the Flyer said it was ‘regrettable’ that the tenants had chosen their course of action at a time when it was ‘trying to sort out their default in rent payments’.

It added that the tenants had no valid claim, saying: ‘At no time were your clients forced to shut down their operations.

‘Nor were your clients interrupted by the landlord in their operations. On the contrary, the landlord encouraged your clients to continue with their operations.’

The Flyer’s management also said that it supported the tenants’ businesses at no extra cost by advertising their promotional activities in newspapers.

The 14 tenants involved - the attraction has 30 in all - include Select Service Partner Singapore, which runs the Popeyes Chicken restaurant, Robert’s Coffee and sports bar O’Learys; and Apex-Pal International, which runs Japanese restaurant Hibiki.

They were represented by lawyer Navinder Singh of Navin & Co.

The letter was sent after several meetings arranged by the Flyer with several tenants, either collectively or individually, apparently failed to make headway.

The Flyer’s management had given a one-week rental rebate to tenants last year, but many said this was inadequate as the attraction was closed for a month.

When contacted yesterday, most of those involved in the action said that they were disappointed with the reply.

One tenant who refused to be named said he was not surprised by the reply but he added: ‘We believe our lawyer will take care of our interests.’

What will come next has not been determined, Mr Singh told The Straits Times. He said: ‘It was hoped that the Flyer would have appreciated the seriousness of the situation and used the opportunity to communicate with the tenants on their issues.’

When contacted, a Flyer spokesman said: ‘We have nothing else to add to it (the reply). The Singapore Flyer management has and will continue to work closely with the tenants to improve overall patronage of the Flyer.’