With an expected budegtary shortfall of $14 million for 2004/2005, due in part to spiraling increases in fuel costs and the impact of a multiple hurricane season, Bahamasair officials have asked the Airport, Airline and Allied Workers Union to submit recommendations by the end of November to cut costs, Bahamasair’s managing director Paul Major told The Tribune yesterday.
The airline’s board members and senior management officials were reported to have met with union officials on Wednesday to give a presentation of the state of the global airline industry and talk about the state of Bahamasair as projected to the end of the fiscal year – a $14 million budgetary loss, compared with a previously anticipated shortfall of $5.2 million.
In 2003 Bahamasair spent some $7 million on fuel and it is expected that 2004 will see a $6 million increase over that level, bringing fuel costs to some $13 million.
Source: Yolanda Deleveaux, The Tribune
