The growth and dominance of low cost carriers, coupled with the escalating cost of fuel is wreaking havoc on the airline industry and Bahamasair is no exception, reported the Minister with responsibility for Bahamasair, Bradley Roberts, Minister of Works and Utilities, said on Thursday.
Addressing Rotarians about the challenges facing the national flag carrier, Mr. Roberts outlined that oil prices have spiraled over $50 per barrel, which has pushed the cost of aircraft fuel up to almost $2 per gallon.
Mr. Roberts said he has been advised that low cost carriers have already begun to gobble up gate spaces vacated by the legacy carriers and are gaining market share and territorial ground on legacy carriers almost daily.
According to the Bahamasair chief the advent of low cost carriers to the Bahamian market like Spirit, Air Tran, Jet Blue, makes Bahamasair, with its present cost base, an untenable situation for the government of the Bahamas.
Tamara Mckenzie, The Nassau Guardian
