The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamian airline yesterday said it may switch to a 100 per cent domestic route itinerary in a bid to keep all its 122 staff employed, although it had “not yet” received the Government response it was seeking to a ‘partnership’ proposal.

Captain Randy Butler, Sky Bahamas’ chief executive, told Tribune Business that if it decided to drop all its Bahamas-US routes, the airline would compensate by expanding its menu of inter-island routes.

Long Island, increased service to Eleuthera, and San Salvador were all expansion targets for Sky Bahamas, Captain Butler said, adding that he was seeking a partnership with the Government and Bahamasair to develop both these routes and direct flights from the US.

Noting that load factors on Sky Bahamas’ domestic routes were currently running between 52-65 per cent on Thursday-Friday, and Sunday-Monday, Captain Butler said these numbers dropped to 40-45 per cent during the remainder of the week.

The airline currently flies from Nassau, Freeport and Marsh Harbour, and the Sky Bahamas chief executive said that while the latter route was performing well and Grand Bahama “doing OK”, service from the Bahamian capital into the US and back was “a huge challenge”.

Captain Butler attributed this to competition levels and incentives offered to foreign carriers, such as the Companion fly Free, which Sky Bahamas did not receive and meant it could not compete.

The airline was currently assessing the fate of its US routes come 2013, and Captain Butler told Tribune Business: “The domestic routes are doing well, and we continue to find ways to keep people employed and grow at the same time.

“What we’re doing now is looking at other domestic routes so we can keep all the folks and resources employed. The domestic market can support us, especially if we get the support of the Government.

“We may come to do all domestic routes. We’re looking at Long Island, expansion in Eleuthera, and are heading back to San Salvador.”

Apart from servicing these destinations from Nassau, Captain Butler said Sky Bahamas was also looking at the feasibility of providing direct flights to some Family Islands from the US.

“Some of the islands are dying for direct traffic from the US,” he told this newspaper.

“Islands like Andros, we’re willing to partner and share with government to develop those routes. We’re willing to partner with Bahamasair any day to help that. The people that benefit are the consumers and Bahamian taxpayer.

“Family Island hotels are in need of it, and we can do that. We continue to knock on the door, but we’re not getting the kind of response we’re hoping for.

“We’re trying to partner with the Government; we’re not looking for a handout. We want to develop tourism, and bring employment to the Family Islands. Had it not been for us going to islands like Cat Island, they’d have problems.”

Captain Butler said load factors on Sky Bahamas’ Marsh Harbour-Fort Lauderdale route were “a solid” 60-65 per cent, due to the large second home market on Abaco.

When it came to Nassau, he said that while much depended on the cruise lines and Bahamasair ‘specials’, Sky Bahamas was “at 90 per cent every day going into Nassau” during the Thanksgiving holiday period.

“Nassau could really be a win-win if we can partner with Bahamasair and get the same benefits as other operators,” Captain Butler said.

He also urged the Government to make an overall assessment of the Bahamian civil aviation industry, and look particularly at issues such as ‘double taxation’, the level of fees being levied on operators, and whether the funds collected were being ploughed back into the industry’s development.

“We’re always paying the government money on taxes paid,” Captain Butler told Tribune Business.

He explained that when Sky Bahamas last assessed its tax burden, it was “just over” $1 million per year.

The ‘double taxation’, Captain Butler said, occurred because the airline paid a 0.75 per cent Business Licence fee on all revenues - including, and on top of, Civil Aviation taxes and airport fees/taxes.