The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A top US official yesterday hailed the signing of an air transport agreement with The Bahamas as a "win-win" situation that paves the way for increased airlift and economic growth in both countries.

David Short, the US Department of Transportation's deputy assistant secretary, said at the signing ceremony that The Bahamas had joined 125 other countries in securing a "liberalised" aviation agreement of this nature.

Dionisio D'Aguilar, minister of tourism and aviation, said the deal's signing will make travel between The Bahamas and US easier by establishing a more transparent, less bureaucratic approval process that airlines must navigate in seeking to establish service between the two nations.

Noting that the agreement's signing comes as The Bahamas is celebrating record-breaking US visitor arrivals of 1.45m in 2019, he added: "What this is going to do is to put in place a regime that facilitates Bahamian aircraft being able to fly into the US, and American aircraft being able to fly into The Bahamas.

"A lot of it is already in place, but the purpose of this agreement really is to formalise that arrangement and to document it ,and to lay out a fairly prescriptive process for airlines that want to do service from The Bahamas to the US or the US to The Bahamas.

Mr D'Aguilar added: "We hope to increase airlift, and therefore drive additional foreign visitors into the country, and to provide economic opportunities for our aviation sector - for our local operators to provide service into the US.

"Most of the business is from the US to here. We are a country of 400,000, and they are a country of 300m, so obviously most of the commerce will flow from the US to The Bahamas. We thought it was important that we have this agreement with the country with which we conduct the most commerce.

"We have signed 27 agreements prior to this, and it seemed odd to us that the country with which we conduct the most commerce, we did not have an agreement in place. So that why it was important to get this done," he continued.

"Airlines in the respective countries that were intimidated and overwhelmed by a perceived bureaucratic process to establish air service between the US and The Bahamas can now be assured that, with the signing of this agreement, the process is clearer and far more manageable and far more transparent than it once was.

"Airlines that will be designated by both the US and The Bahamas are all able to benefit from this agreement. These negotiations took almost four years from commencement to today, but it was a priority of this government that the agreement be concluded as quickly as possible given the close economic ties between our respective countries."

The air transport agreement effectively secures market access to the US for Bahamas-owned and based airlines, creating opportunities for industry growth and to expand the market. It does not permit "cabotage", which would have given US airlines the right to operate domestic flights in this nation - something that is off-limits as far as local players are concerned.

Julia Brathwaite-Rolle, the Bahamas Civil Aviation Authority's manager of safety oversight, said: "With the signing of this agreement, companies now seeking DOT (US department of transport) approvals and regulatory approvals to operate within the United Sates are able to do so...

"So it's a win on both sides as well, as it allows for co-share agreements to be established and gives opportunities to local carriers. If you are a company that's operating into The Bahamas with a particular type aircraft that can't go into the Family Islands, they can partner with our local carriers and transport. So it's a win-win."

Mr D'Aguilar said The Bahamas has now completed 23 air services agreements, and is waiting to sign another 28 once the other countries have completed their own legislative and regulatory approvals processes.

"These air service agreements provide financial incentives and internationally agreed rules and regulations, which govern how a foreign carrier from a specific country can provide service to The Bahamas, either directly or via a code share arrangement," he said.

"As a result, when a foreign carrier expresses an interest in commencing air service to The Bahamas, the regulatory regime is already in place and service can commence expeditiously, without undue bureaucratic delays.

"It also provides the same opportunity to our Bahamian-designated airlines to operate under this agreement into the US and any other country with which these agreements have been executed."

Stephanie Bowers, charge d'affaires at the US Embassy in Nassau, said: "This new, revitalised air transport agreement will help create more affordable and more convenient aviation routes between our two countries.

"It will facilitate additional flights directly from the US to the Family Islands, giving international visitors and the Bahamian diaspora more opportunities to explore the vibrant culture and pristine waters of the entire archipelago."

Highlighting the record-breaking 7.2m total tourist arrivals to The Bahamas last year, Ms Bowers added: "Over the past two years we have celebrated with you as the number of stopover visitors to The Bahamas increased at record setting rates. Each additional day these visitors spend in your beautiful country helps fortify the Bahamian economy.

"However, more than just simple economics, stopover tourism allows visitors, the vast majority of whom are US citizens, to deepen the understanding of The Bahamas. It is my firm belief that this deeper understanding will lead to stronger, more enduring ties, including exciting new opportunities for both our countries throughout the Family Islands."

Manisha Singh, the US assistant secretary of state for the bureau of economic and business affairs, added: "We think that this air transport agreement will signify to American tourists, to the American traveller, that not only should they come here but that it will be easy for them to come here, that it will be a pleasant journey, a pleasant stay.

"It benefits our trade and our commerce… the travel and the tourism benefits really are going to [boost] the economic relationship overall."