The government intends to privatize the national flag carrier within eight months, Minister with responsibility for the airline Bradley Roberts announced in the House of Assembly Thursday.
Prime Minister Perry Christie, meanwhile, indicated that the privatization process is going well.
Minister Roberts said because of recent losses attributed in part to hurricanes Frances and Jeanne, Bahamasair will return to losing more than $20 million annually.
ﾓThis is simply unacceptable,ﾒ he said. ﾓThe Bahamas government or more specifically the tax payer can no longer afford this level of financial support for the national flag carrier particularly when there is shelter and other basic necessities to be funded in various islands in the aftermath of hurricanes Frances and Jeanne.ﾒ
He said privatization would be in keeping with the governmentﾴs campaign promise to reduce losses at Bahamasair.
ﾓThe government will continue to support the board and management of Bahamasair in their efforts to achieve these and their other objectives in fulfilling the governmentﾴs mandate,ﾒ Minister Roberts said.
He explained that Driftwood hotels in Grand Bahama suffered serious hurricane damage and were forced to close.
The anticipated revenue from the Driftwood ﾓseat guaranteeﾒ service between Freeport and Florida and the expansion of that programme have been lost, Minister Roberts told Members of Parliament, while supporting a resolution for a government guarantee of a $3.4 million loan to purchase two jets for Bahamasair.
Revenue from Freeport also declined due to the restrictive hours of travel because of hurricane damage to navigational aids at Grand Bahama International Airport.
While the airline expects to record significantly higher losses this fiscal year, in 2003/2004 it realized what the Minister called ﾓthe most impressive improvement year over yearﾒ having reduced it losses from $27.5 million to $11.4 million, an almost 60 percent improvement.
This loss is inclusive of $800,000 associated with the industrial action called by the Airport Airline and Allied Workers Union last November, he said.
Revenue grew by $3 million while expenses fell by $13.3 million.
The revenue growth was primarily attributed to the incremental sales generated from the Driftwood ﾓseat guaranteeﾒ service between Freeport and Florida gateways and growth in charter business.
Minister Roberts added, ﾓLow cost carriers have driven down fares permanently and it is simply foolhardy for anyone to assume in these times that you can enter a market cold and eke out a profitable market share.It just does not happen anymore.ﾒ
Macushla N. Pinder, The Bahama Journal
