By KHRISNA VIRGIL
Tribune Staff Reporter
kvirgil@tribunemedia.net
PRIME Minister Perry Christie says he wants Bahamasair to be operated similarly to the Nassau Airport Development Company(NAD) because such a move would be economically best for the country.
Speaking publicly for the first time last night of the cash strapped airline, Mr Christie said the government has up to this point subsidised Bahamasair to the tune of $500 million.
But he suggested that the same financial assistance could not continue. Instead, he said, Bahamasair must now earn its place as the national airline by developing existing markets and pioneering newer ones. He added that he envisioned a public private partnership for Bahamasair in the future.
Later, Deputy Prime Minister Philip ‘Brave’ Davis told The Tribune that privatising Bahamasair was a possibility for the government. He said that the move was not “off of the table”.
“We must now work,” Mr Christie said, “to ensure that Bahamasair is able to match and really to give the country what it deserves (and) that is helping to pioneer markets (and) going into new markets. Clearly I must have something in mind by the way in which I have spoken.
“My government will be asked by me to examine Bahamasair, recognising that we have subsidised it to date over half a million dollars. It must be able to do more to justify being a national airline. My own view is that there has to be a public private partnership moving forward.
“I have very developed views on it and I use this occasion as the first occasion to talk about it and therefore in speaking I was directing the government and the people of the country to recognise that I am turning my attention specifically to Bahamasair.”
Mr Christie made his views of Bahamasair known as he addressed scores of dignitaries and executives during the opening ceremony of the domestic arrivals, departures and international departures terminal of the Sir Lynden Pindling International Airport.
In addition he pin-pointed the need for Bahamasair to contribute more substantially to the Tourism sector.
“Surely a country which is a leader in tourism and financial services should be capable of causing Bahamasair to play a leading and dynamic role in meeting our airlift requirements which are essential to the growth of the tourism industry throughout the Bahamas,” Mr Christie said.
On Wednesday, Bahamasair’s Managing Director Henry Woods said he had no knowledge of privatisation talks concerning the airline, but he admitted that he would welcome major reforms for the company.
Comments
John 10 years, 6 months ago
Remember when you use to travel on Bahamasair ad when you get to the check-in line in Miami just before Christmas and the boxes would be stacked to the ceiling? And never try to fly to a family island that was having regatta because you bound ti get left, be late or get stranded on that island. But Bahamasair has come a long way since those days: They have implemented a "no box" policy where passengers use travel bags instead of thousands of boxes Their reservation system is very reliable, meaning that if you have a reservation there is a 95% chance you will get your seat if you arrive to the airport on time. And the airlines n-time performance is quite good, especially during good weather, and on their morning flights. And recently more non--Bahamians have taken to flying the national airline but on international and domestic flights. So the question then is, IS BAHAMASAIR WORTH DIPPNG INTO THE PUBLIC PURSE TO THE TUNE OF $11 MILLION A YEAR? some things to ponder: 1.The Bahamas government spends some$100 milion a year on tourism advertising and promotion. Bahamasair is the most tangible means of advertising the country has. By having a presence in tw very busy airports in Florida, it gives exposure to millions of persons who may eventually visit to the Bahamas, and travel Bahamasair. 2. Likewise the national airline has maintained a presence in all the major islands of the Bahamas, and through partnering with a number of smaller carriers it has made travel to many parts of the country not only availble on a regular basis, but more affordable. 3. Many other government agencies rely and depend on Bahamasair to stay connected and or to carry out their services: the Post Office, B.E.C, B.T.C, Water and Sewerage,The Hospitals Authority, Immigration and Customs, nd some private companies like The tribune and the Nassau Guardian and Purity Bakery also require the services of this airline. 4. Only 1 in 13 airlines operating in the world are profitable. Considering the nature of Bahamasair's market, it may never turn a profit. But what is the opportunity cost of not having this airline in place and up and running?
So while restructuring the airline and putting a management team in place to ensure a more efficient operation may be option, a country with a far flung islands, like the Bahamas, cannot do without a national airline or at least a form of interisland travel that is constant, affordable and willing to service islands that ay not be profitable. While the company managing the airport has proven itself, the company that has taken over .BTC has yet to prove itself. In fact Cable and Wireless have not lived up to the expectations of Bahamians. and they seem to be stepping on their own feet along the path for growth. Do not be too quick to dismantle Bahamasair, or turn it over to a foreign entity with he expectations that they will solve all its problems overnight.
john33xyz 10 years, 6 months ago
Bahamasair needs to get rid of the jets. We can't afford to keep leasing them. We should also not ask China to "give" us any jets (not that that's been talked, but it is not unbelievable).
We should stick with the Dash-8's and have a regular schedule to all the family islands AND to Miami and Ft. Lauderdale and West Palm with the Dash-8's only. Also STOP trying to put the smaller airlines out of business, like they did a couple years ago in Andros with them running almost empty planes back and forth twice a day.
There ought to be a management team appointed by the Governor General that has EQUAL representation (say a senior management team of 10 with five staunch FNMs and five stuanch PLPs) so that that the Andros thing doesn't repeat - that is, trying to put the airlines affiliated with the "out of power" party out of business.
If we can stop doing fool like that (by equalizing the political representation) and stop wasting money leasing jets so we can "look bigger than we are" - we will be just fine and turn a profit.
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