Deputy Prime Minister Philip Brave Davis has expressed hope that Bahamasair is on the way to becoming "less of a burden to the Bahamian taxpayers", according to recent expense reports.
Speaking during the 2014/2015 budget debate in the House of Assembly, Davis revealed that the costly airline has made significant progress in addressing its financial shortcomings, including reducing its annual net loss and curbing the size of its government subsidy.
Bahamasair operated at a net loss of $26.6 million during the 2011/2012 fiscal year, while the projected loss for this fiscal year, which ends June 30, is $15.6 million, said Davis.
"Bahamasair's recent performance data clearly indicates that the airline is making progress towards becoming less of a burden to the Bahamian tax payers.
"The fact that the government has reduced Bahamasair's subsidy from $18.6 million this year to $15 million demonstrates confidence in the performance of the administration and operations of the airline," argued Davis.
However, Davis admitted that the airline was "still a long way from profitability", and called for discipline throughout the company, stating: "I must admonish all employees, from the managing director down, not to take this and the continued high level of government subsidies for granted."
According to Davis, Bahamasair's budgeted deficit for the 2014/2015 fiscal year is $16.6 million, which includes a recently-introduced business license fee of $1.2 million.
Davis further commented on the challenges still threatening the airline, specifically the issue of long-expired "industrial agreements between the company and four associated trade unions".
"These agreements have expired since 2009, and it is the government's desire that terms and conditions could be reached that would represent a viable future for the airline and its 641 employees. We are hoping that this would be accomplished before the end of this year," said Davis.
He also declared that customer complaints had also decreased considerably, showing a "6.7 percent decrease year over year", since 2011. The deputy prime minister attributed this decrease to an overhaul of the airline's baggage policies and procedures.
"We implemented new approaches to certain expenses," said Bahamasair Chairman Valentine Grimes, when asked by Guardian Business how the airline was able to reduce its operating costs.
"Rather than contracting out to service our airplanes, we've developed the expertise in-house to service these airplanes," stated Grimes, adding that the airline made efforts to do a better job "collecting revenue due to Bahamasair, such as those for overweight baggage, and a better job of providing competitive pricing of our fares".
"We still have other areas we can improve on," added Grimes.
On the subject of Bahamasair's expired industrial agreements, Grimes commented that a joint meeting with the board and management of Bahamasair, various trade unions and ministers of the government had recently been held. Grimes hoped that the negotiations would be completed by the end of the year.

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