The Tribune

By NEIL HARTNELL Tribune Business Editor THE BAHAMAS is "well buffered" against any potential fallout from moves by American Eagle's parent to slash its workforce by up to 13,000, Tribune Business was told yesterday, the airline being among four-five carriers that each enjoy a 14 per cent share of seats coming into Nassau. Vincent Vanderpool-Wallace, minister of tourism and aviation, told Tribune Business that the strategy of diversifying airlift to the Bahamas as much as possible, so that this nation's tourism industry was not disproportionately reliant on one carrier, would insulate this nation if American Eagle's routes and service frequency from the US were impacted. "I've been in touch with them very recently," Mr Vanderpool-Wallace said of the struggling airline and its parent, "and there's no indication at all at the moment that there'll be any adverse actions that will affect the Bahamas. "The good news for us is that American's proportion of business has been levelled out substantially over the last four-five years. One of the things we've had as our objective is to put ourselves in a situation where we have multiple providers of air transportation to the Bahamas. "Four-five providers each deliver 14 per cent of the business that comes into Nassau. There's a balance across the business so we're not reliant on any single carrier." AMR Corporation, parent company of American Airlines and the latter's regional carrier, American Eagle, which serves the Bahamas chiefly out of its Miami International Airport hub, is looking to shed about 15 per cent of its workforce in a drastic cost-cutting measure designed to enable it to emerge from Chapter 11 bankruptcy protection. The impact on American Eagle's routes, and frequency of flights to the Bahamas, is currently uncertain, but the Bahamian tourism and hotel industry cannot afford any ill effects. Mr Vanderpool-Wallace said this, though, was unlikely. "This is precisely the point we've talked about for several years. If we find ourselves in a situation where there's a reduction in any single carrier, that impact will be minimal," the minister told Tribune Business. "We believe we have ourselves well buffered against any decrease by a single carrier." Data contained in the Bahamas' draft National Aviation Policy, which has been obtained by Tribune Business, backs up Mr Vanderpool-Wallace's assertions. American Airlines (Eagle), for the period between August 2011 and July 2012, is projected to have a 14 per cent market share of international seat capacity from Lynden Pindling International Airport (LPIA), giving it the joint second largest position. It is behind Bahamasair, the market leader with a 20 per cent stake, but equal with Jet Blue, which also enjoys a 14 per cent share. Close behind come US Airways and Delta, with 13 per cent and 10 per cent shares respectively. If anything, any potential fallout will be felt more in Freeport and Abaco. American Airlines has a 37 per cent market share of Freeport's international airlift, with Vision Airlines - at the time the report was written, it had yet to begin its service - projected to take a 26 per cent market share. Continental Airlines was shown by the report as having 11 per cent, with Bahamasair some 10 per cent. In terms of airline share of the Marsh Harbour market, American Airlines and Continental led the way with 41 per cent and 42 per cent, respectively. Bahamasair accounted for the remaining 17 per cent. Captain Randy Butler, president and chief executive of Sky Bahamas, yesterday told Tribune Business that Bahamasair would be among the main beneficiaries if American Eagle cut back on its routes and schedules to this nation. This was because Bahamasair was the only domestic carrier to fly into American Eagle's Miami hub. "American is doing Miami; we're doing Fort Lauderdale," Captain Butler, the DNA candidate for North Andros and the Berry Islands, said. "There may be a potential benefit for Bahamasair as they go to Miami." The draft National Aviation Policy said: "The South Florida market comprises four airlines, Bahamasair, American Airlines, JetBlue and Spirit Airlines flying between Nassau and Miami and Fort Lauderdale. "Bahamasair is the only carrier operating to both cities, with American Airlines flying only to Miami and the remaining US carriers just to Fort Lauderdale. JetBlue is Bahamasair's sole competitor in the Orlando market, while Providenciales is operated by Air Turks & Caicos and British Airways besides the Bahamian carrier. "In the United States markets, Bahamasair's capacity share is between 44 per cent and 65 per cent, which is more than satisfactory considering the intense competition it experiences."