Vanderpool-Wallace: AA bankruptcy will not affect service

Thu, Dec 1st 2011, 09:03 AM

Although senior aviation officials insist American Airline's recent filing for bankruptcy protection won't impact travel to The Bahamas, at least one local executive sees it as an opportunity for domestic airlines to take a greater role in travel to the Family Islands.
Vincent Vanderpool-Wallace told Guardian Business that American Airlines filing for Chapter 11 is not at all unusual, as they were the last to hold out of all the trump carriers.
The restructuring, he said, will run its course with minimal disruption.
"We're fairly certain this is not going to affect us in any way," he said.
"We do not expect disruption to service from American Airlines or American Eagle."
On Tuesday, not only did American Airlines file for bankruptcy protection, but it also replaced its chief executive. The crux of the matter, according to reports, hinges on labor issues and the 88,000 employees at the company.  American Airlines has also assured the public there will be no disruption to its normal flight schedule.
As of Wednesday morning, American Airlines had seven flights leaving for Miami. The carrier does brisk business to The Bahamas, in addition to service through its subsidiary American Eagle to the Family Islands.
The president and CEO of Nassau Airport Development Company (NAD), Stewart Steeves, echoed the sentiments of the Minister of Tourism, saying the filing for bankruptcy is meant to give the airline flexibility to cancel or change contracts as part of its restructuring.
American Airlines does not have a contract with Lynden Pindling International Airport, he noted, and instead pays fees on a flight-by-flight basis.
"I don't expect that they will scale back their flights," he told Guardian Business.
"We expect overall service to continue as they sort out their labor contracts."
But Randy Butler, the CEO of SkyBahamas, did not express quite so much optimism concerning American Airlines in The Bahamas. In particular, he felt American Eagle, the subsidiary flying to the Family Islands, could be first on the chopping block if cutbacks occurred down the road.
"This speaks further to why the government should support their national airlines and give them the right mandate," he explained.
"American Eagle is a service where we are connecting ourselves to the Family Islands. I think you might have more effect there than anything. How are we going to develop these islands?"
Butler felt it was an example of how local carriers could step up and not be at the mercy of swings among international companies.
With more than 122 locals employed with SkyBahamas, he said the local airlines must be more "empowered" and given more responsibility and incentives.

Click here to read more at The Nassau Guardian

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