The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Cabinet minister yesterday predicted incoming airlift to The Bahamas will return to pre-pandemic capacity of 4,000 seats daily by the 2021 fourth quarter with airline confidence “going through the roof”.

Dionisio D’Aguilar, minister of tourism and aviation, made the projection prior to giving an impassioned plea for North Eleuthera’s 3,000 “common” land owners to reach a compromise with the government so that the $60m-$70m redevelopment of the area’s airport can proceed in earnest.

Addressing the Eleuthera Business Outlook conference, he warned that the compensation demands and legal action initiated by the Harbour Island Commonage Committee would make “the hurdle for its start and completion “that much higher” just as tourism and air travel into the destination were ramping up post-COVID.

“Airlift into Eleuthera will grow as demand improves,” Mr D’Aguilar said. “We are encouraged that investor confidence in The Bahamas and the Family Islands by the airlines has gone through the roof when it comes to airlift.

Pointing to Virgin Airlines’ plans to begin twice-weekly service to Nassau from London’s Heathrow airport this November, and Frontier Airlines’ “ramping up” of service from key US markets, Mr D’Aguilar said: “What great news for brand Bahamas as we move to aggressively secure pre-pandemic airlift levels.

“We are projecting that by the fourth quarter of this year The Bahamas will be back to pre-pandemic airlift capacity of 4,000 seats daily.” He added that this now needed to be matched by the quality of airport gateways into The Bahamas, including North Eleuthera’s airport.

“There is no doubt that North Eleuthera needs a new airport,” Mr D’Aguilar asserted. “You have completely outgrown your existing facility given the robust growth in visitor arrivals. The North Eleuthera airport is woefully inadequate.” New aircraft taxiways and runways were required, the minister added, while the existing terminal building needed to be demolished and replaced with an expanded version.

However, North Eleuthera’s commoners have already made good on their threat to pursue multi-million dollar Supreme Court redress over the government seeking more of their land for its airport expansion. They are seeking to repossess the land upon which the airport, Water & Sewerage Corporation water fields (now a reverse osmosis plant) and North Eleuthera Garbage Dump now sit on the basis that the government has violated their constitutional and property rights in taking these assets without paying a single cent for it.

The writ and statement of claim, filed on behalf of the Harbour Island Commonage Committee as representative of the commoners, is also seeking an injunction to bar the government and its agencies from accessing the land while claiming multi-million dollar damages over both the airport and Water & Sewerage facilities.

Mr D’Aguilar yesterday called for a compromise that avoids a long-running legal battle. “Your land situation at North Eleuthera airport is a challenge with the airport sitting on land owned by the commonage,” he admitted. “One would think that the contribution of land to a new airport project for the good of all the citizens and residents of North Eleuthera would make sense.

“The demand for compensation for the land just makes the hurdle for its start and completion that much higher. With the need for the lawyers to go back and forth on this matter, delays are inevitable.” With redevelopment/construction costs pegged at $65-$70m pre-COVID, Mr D’Aguilar added: “Adding another bill on top for the land makes this project harder to get going, but I’m sure a solution will be found soon.” 

The minister also warned it was “inevitable” that user fees will be levied on passengers moving through Family Island airports to generate a revenue stream that will finance - and maintain - the planned upgrades. “I don’t think there’s any airport in the world that does not charge a user fee apart from the Family Islands,” Mr D’Aguilar said.

“It’s only starved the airports of funds, so in many instances our Family Island airports are in an unacceptable state.” He indicated that it was unlikely that these user fees will be implemented before the next general election, projecting that it would occur “probably in the latter part” of 2022 when consultations had completed with industry stakeholders and airlines included the cost in their tickets.

While forecasting that such user fees were likely to be around 50 percent of the $48 per passenger charged at Lynden Pindling International Airport (LPIA), Mr D’Aguilar said they would also vary between Family Island airports based on the extent of the investment required. “The fee for North Eleuthera will not be the same as the fee for Mayaguana,” he added.

Algernon Cargill, the Government’s director of aviation, yesterday seemed to take a more sanguine view of the North Eleuthera land airport when addressing the same conference yesterday. He said the Government was “in the final stages” of compulsorily acquiring the hundreds of acres needed to bring the airport up to 800 acres using existing powers provided by Bahamian statute law.

With North Eleuthera’s 15,000-plus airport visitors for the 2021 first half already exceeding figures for the whole of 2020, Mr Cargill argued that it “behooves us” to focus on developing airport infrastructure in North Eleuthera given that existing facilities “no longer meet the demand and traffic flow to the island”.

Mr Cargill yesterday branded the existing North Eleuthera airport terminal as “unattractive” and “unsafe”, and failing to match the quality of the island’s hotel and tourism product. “It’s not a good environment,” he said. “This is not the first impression that we want visitors to see and the last impression when they leave.”

Pre-qualification for the Government’s Request for Proposal (RFP), seeking an operating partner for North Eleuthera and five other Family Island airports, is due to commence next month after the initial “market read” garnered responses from 22 companies in five different countries.

However, not waiting for reconstruction to begin, Mr Cargill said Cabinet had approved - and made $400,000 in funding available for - the acquisition of a 1,400 square foot modular trailer that can seat 50 passengers in a temporary departure lounge once they have gone through check-in.

It will be attached to the existing terminal, and also contain seating for Customs and airport staff. Mr Cargill said the project will begin in two weeks’ time.