The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

SUNWING Travel Group is demanding a $9 million upgrade to bring Grand Bahama International Airport up to its standards, Tribune Business can reveal, before it launches services to the island this fall.

Obie Wilchcombe, minister of tourism, confirmed that the Government was in discussions with the airport’s owners, Hutchison Whampoa and Port Group Ltd, the Grand Bahama Port Authority (GBPA) affiliate, to resolve the issue.

His comments come amid concern over who will take responsibility for financing the airport upgrades, given that they are inextricably linked to the opening of the Grand Lucayan’s Reef Village complex - a development touted as creating 1,000 full-time jobs.

Tribune Business was told the issue was raised at a recent Grand Bahama Chamber of Commerce meeting, where concerns were aired that neither the Government, nor Hutchison Whampoa, were showing any interest in meeting Sunwing’s demands.

A source attending the Grand Bahama Chamber of Commerce meeting told Tribune Business: “Sunwing indicated that the airport in Grand Bahama requires a $9 million upgrade to be of a standard to service their flights.

“However, the Government has shown no intention of making any such upgrades, and the Hutchison group indicated that it will not do so. In fact, they are looking for a return of their fees.”

It seems inconceivable that the situation will not get sorted out, given that all parties involved have a vested interest in making it happen.

The Government and Hutchison Whampoa have vested all their hopes for reviving the latter’s Grand Lucayan property in the deal with Sunwing, which will provide the airlift to re-open the Reef Village, while its Blue Diamond affiliate transforms it into a five-star resort.

Prime Minister Perry Christie previously pledged that the 400-room Reef Village will be open by year-end 2013, creating 1,000 badly-needed full-time jobs.

While the deal is thus a ‘must happen’ for the Government, from a social, economic and political standpoint, it is also a key one for both Hutchison and the GBPA - and largely for the same former two reasons.

The duo are 50/50 joint owners of Grand Bahama International Airport via the Freeport Harbour Company, although Hutchison financed its construction and has management control.

While this would indicate that the financing should come from the private sector, via the two owners, the picture has been further complicated by the Government taking over radar and air traffic control at the airport.

The only thing that is certain is that the clock is ticking, and time is running out to meet Sunwing’s demands.

The Canadian-based Sunwing Travel Group is expected to launch six flights per week service between Canada and Grand Bahama to coincide with the opening of the Reef Village. And Vacation Express, a division of Sunwing, is expected to begin service between the US and Grand Bahama starting in Spring 2014.

In an interview with Tribune Business, Mr Wilchcombe confirmed that Sunwing has expressed concerns that Grand Bahama International Airport was not up to its accustomed standards.

“They have indicated that to us. We have been talking with them, and also the Grand Bahama Port Authority and Hutchinson Whampoa. Hopefully, we will be able to cause for some sort of expansion or new look approach to the airport in Freeport,” Mr Wilchcombe told Tribune Business.

“The difficulty is there would be a number of people on the flights that come from Canada, seated and waiting for their flights and returning home, so therefore we have to cause for facilities to accommodate them.

‘We are now giving consideration to what can be done. We need an area large enough to accommodate the numbers that we would expect from the Canadian market. We’re thinking it may require several million dollars in investment.”

While this could dampen plans to revitalise the Grand Bahama tourism industry and boost airlift to the island, Mr Wilchcombe expressed optimism that the issue would be resolved satisfactorily.

“What we are considering right now could be in the range of $9 million. We are in discussions with Hutchison Whampoa and the Grand Bahama Port Authority,” said Mr Wilchcombe.

“We have had good discussions, we have been working with them and have been able to discuss what we have to do. They are as equally concerned about the tourism industry as we are, so therefore we do have a relationship and we’re discussing it and moving forward.”

One source told Tribune Business: “The $9 million is probably the cost of building a second non-US Customs/secure clearance lounge for outbound internationals.

“As it stands now, the other international charters, West Jet etc, use the domestic terminal, a steel hanger building built by Dr Brown and sold/leased to the Port, who converted it into a new domestic terminal when they demolished the original terminal.”

The source added: “The US does not want other internationals mixed into their pre-clearance situation, and the Port/Hutchison opted out on the new international terminal once they build to satisfy the US.

“The land for the supposed new domestic terminal lies vacant, but was supposed to be built years ago, just never happened.”