The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A private airline’s chief executive yesterday called for greater transparency over the $120 million financing for Bahamasair’s new fleet, and said of the Government: “What have they signed us up to again?”

Captain Randy Butler, Sky Bahamas’ principal, called the arrangement into question after Tribune Business revealed yesterday that CIBC FirstCaribbean International Bank and Credit Suisse were working to raise the funds, which will be used to finance the purchase of Bahamasair’s new fleet and provide some working capital for the cash-strapped airline.

“Did the Government guarantee that money without Parliament’s approval is what I’m asking,” Captain Butler told Tribune Business.

“If the [Ministry of Finance’s] financial secretary doesn’t know the specifics of this deal, then who should? That’s a serious indictment. What have they signed us up to again? In these hard economic times the Bahamian taxpayer is going to have to pay money for a losing proposition. This is an airline which, by admission of the minister responsible, is no longer an essential service.”

Captain Butler was referring to a statement issued by Deputy Prime Minister Philip Davis during a pilot ‘sick-out’ last Christmas, which left thousands of passengers stranded.

Mr Davis asserted at the time that Bahamians needed to realise the airline is “no longer an essential service”. He added that the pilots’ actions did not give the Government any reason to consider expanding services or routes, and instead highlighted the need to reduce its heavy financial investment in the airline, which he described as a financial burden.

But Bahamasair has since ordered 2 ATR 72-600s and 3 ATR 42-600s planes, the first of which arrived in the Bahamas earlier this month. The five planes in total cost $100 million.

Captain Butler described Bahamasair as an “albatross around our necks”, adding that the highly subsidised flag carrier was in direct competition with his and other Bahamian-owned airlines, and jeopardising their business.

“If they don’t make this issue right, I think you are going to find that with all of the new taxes and everything else being placed on airlines, they are going to have to reduce their operation and staff, and maybe go out of business,” the Sky Bahamas chief said.

“The Government is subsidising hotels, boats, cruise ships and foreign airlines with the  Bahamian taxpayer’s monies.

“They are going to put a business like Sky Bahamas, which pays way past $1 million in taxes and fees, out of business. The message I’m getting is that they don’t want to see young Bahamians become successful.”