By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
Bahamasair’s “staggering” financial losses continue to mount, its chairman revealed yesterday, disclosing that revenues for its just-completed 2020 financial year were down $32m compared to 2019.
Tommy Turnquest, giving a bleak near-term outlook for the national flag carrier, told Tribune Business that passenger numbers and load factors on its domestic routes are “dismal” with as few as six persons travelling on its service between Nassau and Freeport.
He added that the airline had cut back its weekly number of flights “like 90 percent”, with the 22 to 26 presently scheduled equivalent to what it used to do per day prior to the COVID-19 pandemic.
With Bahamasair presently confined to servicing its domestic inter-island routes only, Mr Turnquest said it had yet to look at restarting its international flights into the US and other Caribbean destinations given the government’s continuing concerns over the rate at which COVID-19 infections are increasing on New Providence.
With memories still fresh about how the second domestic COVID-19 wave was sparked by Bahamians returning from travelling to Florida and elsewhere, Mr Turnquest said the national flag carrier simply lacked the “economies of scale” of an American Airlines to begin pre-flight virus testing of passengers before they boarded the plane.
“They’re still very, very low,” the Bahamasair chairman said of passenger numbers on the airline’s domestic flights. “For example, we went into Marsh Harbour this morning, and I guess we had about 15 and brought back 21-22m, either on a 70-seater or 50-seater.
“We combined Rock Sound and Georgetown on a 70-seater, and had 21 passengers total. On Nassau to Freeport we had six passengers. We just don’t have the numbers. We’ve cut back. We’re down to 22 to 26 flights a week when we used to do that in a day. We’ve cut back like 90 percent.”
Mr Turnquest said this comparison was not exactly like-for-like, as Bahamasair was only currently flying domestically, whereas pre-COVID it was also on international routes. He added, though, that the present halt on flights to Miami, Fort Lauderdale, West Palm Beach and Orlando in the US; Providenciales in Turks & Caicos; two destinations in Haiti; and Havana had cost Bahamasair 50 percent of the locations it normally serves.
“You take those destinations out of the mix, that’s eight of 16 destinations,” the Bahamasair chairman told Tribune Business. “We’ve cut back tremendously. In terms of lost revenue, the numbers are staggering. We’re talking tens of thousands versus millions.
“Bahamasair, for the fiscal year ended June 30, 2019, had revenues of $92m. For the year ended June 2020, because of Dorian in late 2019 and three to four months of COVID-19 - March, April, May and June - we were down to around $60m.
“It’s been huge, and then we didn’t fly. We flew for a couple of days in July, didn’t fly in August and started up in September. The numbers, as I’ve told you, have been dismal. Again, we’re trying to do the best we can.”
With a near-35 percent year-over-year drop in Bahamasair’s top-line, Mr Turnquest said the national flag carrier was seeking to “keep the operational costs at a minimum”. He acknowledged that the Government was continuing to subsidise the airline’s $3.5m monthly wage bill, and said the airline was “talking about everything” to find ways to slash its expenses.
Besides the loss of jobs and incomes inflicted by COVID-19, and with many Bahamians wanting to stay close to home, the mandatory 14-day quarantine imposed on all domestic travellers from New Providence remains the major factor driving reduced domestic travel.
The Government has given no indication that this will be lifted any time soon, and Mr Turnquest said Nassau’s rising infection rate was likely giving it pause for thought on Bahamasair restarting its international operations given that many Bahamians liked to use it for travel.
“We haven’t looked at that,” Mr Turnquest added of an international restart. “We’re still very concerned about our domestic numbers which we are facing. The Government is still concerned about the number of COVID-19 cases we have in The Bahamas and whether they want to encourage Bahamians to travel.
“I know some Bahamians are travelling on the foreign carriers’ reduced schedules but when Bahamasair starts travelling it’s wide open.” Mr Turnquest added that Bahamasair simply lacked the “wherewithal” to offer the pre-flight testing that American Airlines plans to introduce.
“We can’t achieve the economies of scale to make this thing worthwhile to set up a whole infrastructure,” he said, adding that the best solution would be to “piggyback” on the US authorities if they set up such schemes for the pre-flight testing of all passengers.
Comments
TalRussell 4 years, 2 months ago
Every other drastically COVID-19 affected airline but Bahamasair's zoo mentality politically appointed, forced to park their fleet planes have scrambled cut back payroll and cut all expenses where possible. Shakehead** once for Yeah, Twice for Not?
pileit 4 years, 2 months ago
Wtf are you on about, use sane English for God's sake.
Economist 4 years, 2 months ago
With the country suffering financially and the Health services strapped for cash there is no other alturnative than to shut Bahamasair down.
Tal ,at least the airlines (British Airway, Iberia, Ryan Air, Lufthansa, Air France, United, American) that you refer to, in the other countries, were not big money losers. The ones like Bahamasair (South African for example) have either been shut down or are in the process of being shut down.
tribanon 4 years, 2 months ago
SHUT THIS DAMN NATIONAL AIRLINE DOWN ONCE AND FOR ALL.
OUR CORRUPT POLITICIANS HAVE FORCED TAXPAYERS TO FLUSH WELL OVER HALF A BILLION DOLLARS DOWN THE PROVERBIAL TOILET IN TRYING TO KEEP THIS AIRLINE FLYING SINCE IT WAS FOUNDED. AND YES, THAT'S 'BILLION' WITH A BIG 'B'!!!
THEN GET MOVING ON SHUTTING DOWN THE BANK OF THE BAHAMAS.
IF AS A NATION CAN'T AFFORD A PUBLIC HEALTHCARE SYSTEM AND A PUBLIC EDUCATION SYSTEM, THEN WE SURE AS HELL CANNOT AFFORD A NATIONAL AIRLINE OR A NATIONAL BANK!!
bahamianson 4 years, 2 months ago
Our institutions are filled with lazy people whom only want to talk about , what's for breakfast, what's for lunch, what time is it, I am.ready to go home. We cannot compete with other countries because we are too slack, too lazy, and too big eyed. We want expensive things but don't want to work for them, just steal everything with the symbol of Gucci, Prada, Rolex, Nike, Fendi, Polo, Ralph. We are defined by other people's symbols not our own identity.
ScoobyDoo 4 years, 2 months ago
Let's shut this debate down about Bahamasair once and for all. It seems as if you all are ignorant individuals that do not understand the nuances of an airline. I am tired of hearing the comments about this company or the extensive variables involved in running an airline from individuals that can not even form proper sentences. It is about time that you idiots keep quiet.
If you shut Bahamasair down, who will provide a SAFE means of transportation throughout the archipelago for Bahamians? If you are thinking about the company with the jets, then you are sorely mistaken and not privy to details. Which airline will service the islands in the south with the dirt road airstrips SAFELY? Not in the bush, or the water but on the runway SAFELY. Don't worry, I'll wait. None of them, because the economics will never be in your favor. Are those Bahamians in the south suppose to be subject to the companies with no safety programs, no training programs, or even an aircraft without a bathroom?
Persons above are trying to compare our little airline to MAJOR carriers with UNLIMITED resources (billions of dollars) with a management team comprised of the best aviation and business minds in their various countries. Yes, there is much to be desired for our airline, but only a fool can not see that it has value. Do you know how overpriced the Nassau-South Florida market will be? Just look at the prices RIGHT NOW, $300 plus one way on a single-engined caravan, or $400 plus round trip on an E-190. Seriously? Price gouging in its highest form for a flight less than 200 nautical miles.
The value of Bahamasair may not be monetary, but it is a tremendous national asset, not used to its potential. Instead of running on about shutting it down, how about we advocate for proper vision. Oh wait, that would require leaders with an ACTUAL vision for the country right? Where are they? Don't worry, I'll wait again. The airline business is a billion-dollar industry people, wake up Bahamians. Once again we have a national asset, that we are ready to discard because of our own negligence.
Proguing 4 years, 2 months ago
The government can subsidize routes that are economically unattractive. That will cost a lot less than keeping Bahamasair alive. As for the lower prices to Florida, you are paying the difference with your taxes. There is no free lunch.
Economist 4 years, 2 months ago
Agreed.
tribanon 4 years, 2 months ago
@ScoobyDoo: Spare us all the usual BS about Bahamasair being indispensable to an archipelago nation like ours. Bottomline: The outrageous costs of operating this traditionally grossly mismanaged airline have always greatly exceeded its benefits for our small nation.
ScoobyDoo 4 years, 2 months ago
Since you seem to be informed about these "outrageous costs", what are those costs exactly in figure form? I am certain you do not know what those costs are or what they entail. You are correlating the airline business to some other generic business in the city. Bahamasair as of recent has been subsidized roughly 20 million dollars annually. The government's expenditure for 2019/2020 was 2.877 billion dollars, courtesy of "bahamasbudget.gov.bs". Do the math, Bahamasair's subsidy was roughly 0.69% of the annual expenditure. You call that percentage outrageous? The government just spent 20 million on sidewalks. Get real buddy. Mismanaged, I can agree with that but let's not make it seem like the government is flushing a large portion of its expenditure on the flag carrier.
Economist 4 years, 2 months ago
You are leaving out the interest paid on the $750+ million debt that Bahamasair carries. At say 5% that is a lot of money. Then add that total to the $25 million losses (not 20).
It needs to be shut down.
ScoobyDoo 4 years, 2 months ago
Completely False Information, the government is NOT paying any interest on any 750+ million in debt. You’re pulling figures from heaven sir.
Economist 4 years, 2 months ago
So you are saying that Bahamasair has no debt? That it was given $100 million to buy the last set of planes and has been able to repy all the losses that it has incurred over the last 40 years?
No, that is all accumulated debt ($750,000,000.00) which we, the Bahamain Public, are paying for.
ScoobyDoo 4 years, 2 months ago
I think it is pretty obvious that the airline has debt. Which airline doesn't. The 750 million that you are referring to has been annual subsidies over the 47 year period of its existence. It is not monies that were borrowed from a lending institution specifically for Bahamasair's shortfalls. You are getting the two confused. Those subsidies are budgeted for every fiscal year. Between 15-20 million every year for 47 years amounts to this figure that purporting. So it is not "accumulated debt" per se, it is an accumulated amount of subsidy from its inception.
Economist 4 years, 2 months ago
And the accumulated amount represents $750+ million of the country's National Debt which we are paying for and each year we have to add the carrying cost of the additional debt created by a non-essential service.
We need to stop this waste of money.
ScoobyDoo 4 years, 2 months ago
I do not think you understand how the country's finances work. It clearly does not represent 750+ million of the country's National Debt when that debt is just over a billion dollars. Non-Essential, that is your perspective sir, but how will illegal immigrants get back to their home countries? Do you want them to take over the detention center and run wild through the country? The subsidy represents the need to operate those flights, which as of recent seems to be once-twice a month. What about those non-profitable routes in the Southern Bahamas, you can not charge Bahamians based on Revenue per seat mile. It will be completely unaffordable. But the service has to be provided at a reasonable price. You may think it is non-essential, to the Government it is. It is not going anywhere, just let it go and move on.
Sign in to comment
OpenID