The Tribune

By CELESTE NIXON

Tribune Staff Reporter

cnixon@tribunemedia.net

A FULL critical evaluation of Bahamasair is necessary to make the airline more efficient and cost-effective, Minister of Works and Urban Development Philip “Brave” Davis said.

During his contribution to the Budget Debate yesterday, Mr Davis said a new board of directors will be appointed and further consultation with stakeholders will be undertaken in order to render Bahamasair less dependent on government subsidies.

He said: "I will be calling on the new board of directors to perform a critical evaluation of its purpose and what its mission will be for the future. All stakeholders in Bahamasair will be asked to look objectively at the airline and its future.

"Bahamasair must be transformed into a leaner, more efficient and lower cost carrier with a new vision along with a revised business model."

Bahamasair Holdings Ltd has been allocated $18.6 million for the 2012-2013 fiscal year, the same as the year before, said Mr Davis.

As a national carrier, Mr Davis noted, for decades Bahamasair has been a link between the islands and played an important role in bringing visitors to the Bahamas.

However, like the rest of the airline industry, Bahamasair faces many challenges, most notably the escalating cost of fuel, which places a "substantial financial burden" on the company's operations and costs to the government.

Mr Davis added that the airline is facing increased domestic and international competition.

Notwithstanding these challenges, he said, Bahamasair’s budgeted net loss for the upcoming fiscal year is $21.8 million – $1.7 million less than predicted.