Government will borrow more than $7 million to purchase two used aircraft for Bahamasair, Works minister Bradley Roberts announced in the House of Assembly yesterday. He also said that Bahamasair would be privatised within the next 16 to 18 months.
Mr. Roberts seconded a resolution by Alfred Sears for a governent guaranteed loan for $7,250,000 for the two 1992 50-seater Dash-8-311 series aircraft seater planes from ScotiaBank.
He explained that the loan is to be repaid over seven years at a fluctuating rate of 1 1/8 per cent over a three month London Inter-Bank Offered Rate (LIBOR).
Mr. Roberts said management had been examining several possibilities for expanding the airline’s fleet and decided that these two aircraft would be the most appropriate. They are being purchased from Bombardier Capital Inc., a US company. Bahamasair conducted several competency tests and determined that purchasing the planes would be more financially prudent than leasing them.
The addition of these two aircraft will contribute to Bahamasair about $4,000,000 inincremental revenue on an annual basis.
He said it is just one fo the many initiatives the new board has put forward to improve the overall performance of Bahamasair.
Source: Cara Brennen, The Tribune
