The owners of New York Water Taxi sent a letter to its employees on Thursday afternoon letting them know that it will have to shut down all operations if the city awards the citywide ferry system contract to an out-of-town company.

“After 15 years of providing waterborne transportation in New York City, we have come to the conclusion that we have no choice, unless New York City’s Economic Development Corporation changes its present course, but to close New York Water Taxi and cease all operations by the end of 2016,” co-presidents Helena Durst and David Neil wrote in letter sent to all 200 employees.

New York Water Taxi runs the black and yellow-checkered ferries that run a service to the Statue of Liberty, Ikea, and up the West Side.

Durst and Neil said the company will not be able to compete if a Citywide Ferry Plan does not include its company and makes some of its routes and stops redundant.

“The industry is already slated against smaller, privately-funded companies: New York Water Taxi’s competition includes the free Staten Island Ferry as well as the East River Ferry, which both operate with government subsidy,” they wrote. “Both systems cater to tourists as well as commuters and reduce the local businesses’ market share. The result is that New York taxpayers subsidize tourists and recreational riders aboard both the Staten Island Ferry and East River Ferry, depriving the city of significant tax revenues and jobs.”

The owners promised to provide the employees with compensation at least until the end of October even if the company does not stay in operation for that long.