The Tribune

By NEIL HARTNELL Tribune Business Editor THE HEAD of a Bahamian privately-owned airline has expressed scepticism over plans to solve Grand Bahama's tourism woes via Bahamasair servicing five US markets, asking Tribune Business: "What's changed?" Acknowledging that he did not have full details of the Ministry of Tourism's plans, Captain Randy Butler, president and chief executive of Sky Bahamas, questioned how simply putting Bahamasair's name on the Vision Airline service would grow airlift and load factors from the five US east coast cities being targeted. Noting that there had been no change to the marketing strategy for Grand Bahama, or that island's hotel product, Captain Butler also expressed scepticism over pledges by the Ministry of Tourism's director-general, David Johnson, that the plan would reduce airfares by 50 per cent, while also cutting travel time by 75 per cent. Based on what Mr Johnson had told this newspaper, Mr Butler said the (ACMI) wet lease arrangement that was being lined up for Bahamasair with Vision Airlines would be "expensive", and likely lead to an increase in airlift costs. ACMI stands for aircraft, crew, maintenance, and insurance, something Vision Airlines would provide, while Bahamasair took on the distribution, selling and customer service aspects of the routes between Baltimore, Raleigh, Louisville, Richmond and Fort Lauderdale. Also questioning why such a service was not put out to an open-bid tender, which would have given Bahamian-owned airlines and other the opportunity to prove they could provide a more efficient, cost-effective service, Captain Butler told Tribune Business: "I don't know enough of the details, but you can't start off by saying you're going into this leasing arrangement. "Vision Airlines has been failing, and not able to meet the target capacity level, and they've had all the support of the Ministry of Tourism, the hotels and the airport on Grand Bahama. ACMI is expensive. I don't know how they're going to increase their costs with that and then cut prices by 50 per cent, but maybe they have the secret technology. "If you have already the resources of the Ministry of Tourism, the airport and the hotels, what is putting Bahamasair's name on it going to do? Is there some added value in adding Bahamasair's name to it? I don't understand, though it could be being used as a trial plan." Captain Butler, who is also the Democratic National Alliance (DNA) candidate for North Andros and the Berry Islands, said Bahamasair's rivals should have been allowed to bid on the Grand Bahama service, adding that leasing some Boeing 737s and getting them certified was "not a big issue at all" for the likes of Sky Bahamas. Noting that Bahamasair was already using at least one Bahamian-owned private carrier to service some of its domestic Family Island routes, Captain Butler told Tribune Business: "If they're doing that, do the same for long haul flights. At least put it out for others to see and participate - give us a chance." The Sky Bahamas chief said he was for the proposed Bahamasair-Grand Bahama tie-up if it supported the Bahamas and its tourism economy, but under the structure as outlined was unable to see such benefits. Hinting that the Bahamian taxpayer, through the Government, might well once again be called upon to subsidise Bahamasair and the Grand Bahama tourism industry, Captain Butler added: "All you are going to do now is make the Government responsible for the operation, and expenditure is going to be higher for this, I presume, given what the model is. "You say you're going to reduce the airlift cost, but the cost of providing that is going to go up. What has changed? Has the hotel package in Grand Bahama changed? Has the destination changed to make this a go? "If it's doing the same thing as Vision, and Vision Airlines couldn't meet 65 per cent - it was more 30 per cent - is putting Bahamasair on it going to help you meet a 65 per cent load factor? How are you going to reduce costs 50 per cent? I didn't see the details, but I think it's going to be as it was before. Freeport is dying, and I hope it's not another political thing to say something's being done." Explaining the plan last week, Mr Johnson said: "They [Bahamasair] now have the route authority to fly Baltimore, Raleigh, Louisville, Richmond, in addition to Fort Lauderdale to Grand Bahama. Vision Air is offering an ACMI or wet lease arrangement, while Bahamasair takes on the distribution, selling and the customer service as they gear up to, in fact, fly the flights with their own aircraft in short order." Vision Airlines began flights to Grand Bahama last November 11, providing direct non-stop service from the same five US cities. Its competitive low fares were expected to bring an additional 100,000 seats annually to Grand Bahama in its first phase of operations. Mr Johnson had previously told Tribune Business that Vision Airlines had not been performing up to expectations. He said the airline's service to Grand Bahama was operating at about 30 per cent load factors - far below the 65 per cent expectation. Yesterday, Mr Johnson added of the new plans: "The cost structure alone offers the customers much lower costs. Baltimore to Grand Bahama today requires you to fly about 15 hours round trip, and the airfare will be no less than $650. "On these flights it will take you two hours and twenty minutes, and the airfare is less than $300 round trip. We are cutting airfare back more than 50 per cent, and reducing travel time by more than 75 per cent. It will be a full scheduled service within two-and-a-half weeks where anybody can book. "This service will represent about 100,000 seats to Grand Bahama, which is a base of almost 35 per cent more seats than currently exists to Grand Bahama year around. We intend to build on that. Bahamasair is facilitating this and enthusiastically so."