The Tribune

The Grand Bahama Port Authority (GBPA) yesterday confirmed that discussions about the Government taking over ownership of the island’s airport remain “ongoing”.

Freeport’s quasi-governmental authority, in a statement, said “full details” would be disclosed once the Grand Bahama International Airport’s “transition” to government control was concluded.

“At this time, discussions are still underway,” said Sarah St George, the GBPA’s acting chairman. “Once the transition is completed, full details will be shared with all Grand Bahamians. The current facility is temporary but a commendable investment to facilitate re-opening of the international and domestic airport in the shortest possible timeframe.

“All parties involved will continue to act in the best long-term interest of Grand Bahama. It’s my firm belief that a new, permanent airport will be one of which the nation can be proud, and which will serve the needs of this island as we grow to the next stage of our economic development and storm-resistance.”

The airport talks with the government also involve Hutchison Port Holdings, which has management control through its 50/50 joint venture with the GBPA. Tribune Business revealed last week that a proposal has been made for the government to acquire the airport by paying its existing owners $1 each then assuming responsibility for its multi-million dollar rebuilding.

The fate of any Dorian-related insurance claim on the airport, and whether the proceeds would go to the existing owners or the government, remains unclear. The likely multi-million dollar payout would potentially be a key source of reconstruction funding, and is likely to be a key point in negotiations between the government and the GBPA and Hutchison Port Holdings.

Grand Bahama Airport Company is a loss-making subsidiary of the Freeport Harbour Company, also owned 50/50 by the GBPA and Hutchison, and many observers feel the Minnis administration also needs to acquire that entity too for the deal to be financially sustainable.

Another key consideration is whether Grand Bahama International Airport should be rebuilt on its existing site, or relocated, in a bid to improve its resilience to hurricanes and other natural disasters given that it has flooded three times in about seven years.

The recent decision by Grand Bahama Airport Company to lay-off 11 staff with fears of more to come was interpreted by many Freeport residents and businesses as a further signal the current owners are not prepared to make the necessary investment to restore the asset.

The GBPA and its owners, the Hayward and St George families, in particular have been criticised for failing to fulfill their development obligations as Freeport’s quasi-governmental authority by not taking the lead over the airport’s rebuilding.

However, Ms St George yesterday justified the lay-offs by saying: “Given the inevitable reduction, due to the hurricane, in the number of international commercial flights into Freeport at the present time we understand the responsibility of the Grand Bahama Airport Company to balance appropriate employment level with current operations.

“It is always with deep regret that such difficult decisions are made and, unfortunately, a number of employees were impacted, all of whom have been treated with fairness and respect.”

She added: “Let me assure you that the rebuilding of our airport remains one of the utmost priorities for the GBPA. We will move forward as expeditiously as possible, and always in the best interest of residents, businesses and the future of our beautiful island.”

The GBPA said Grand Bahamians can also look forward to the return of American Airlines and other airlines to help bring tourists, winter residents and families back to Grand Bahama.

Multiple observers have argued that Freeport’s industrial sector and whole economic model will be undermined without a restored airport. Its rebuild is also vital to the $100m Carnival cruise port, together with the $275m ITM/Royal Caribbean acquisition of the Grand Lucayan and redevelopment of Freeport Harbour.