The Ministry of Tourism is planning a major restructuring of the country's flag carrier by the fourth quarter of this year in a bid to drive more inbound visitors from the United States.
David Johnson, the ministry's director general, acknowledged that Bahamasair is currently losing "significant money". The airline, receiving heavy subsidies from the government, has often been criticized for a lack of marketing and efficiency. Some aviation executives claim that Bahamasair is primarily used as a way for Bahamians to shop in Florida, rather than offering a valuable tourism service.
The planned restructuring, however, is intended to change all of that, according to the Ministry of Tourism.
"We have unprecedented cooperation that involves a restructuring of Bahamasair, that will bring airfares down and allow passengers to travel to any destination in the Family Islands with the same ticket and their bags going with them," Johnson said. "We are looking to revisit Bahamasair to provide an increment in inbound visitors as opposed to what they are doing now."
Specific details of the restructuring are unknown at this time, although Johnson noted that a "mutual recognition" has emerged that the national flag carrier should play a much bigger role to stimulate arrivals and drive traffic to the Family Islands.
The government's focus, boosting Bahamasair's domestic presence, may raise a few eyebrows among the airline community. Local carriers, such as SkyBahamas, have been particularly vocal on the need for a level playing field against the subsidized Bahamasair.
Randy Butler, the CEO of SkyBahamas, recently stated that Bahamasair "distorts" the market by offering artificially low prices.
"It is becoming impossible to compete," he said.
"There is no positive movement that I can see to do anything about it. What the government doesn't understand is if the fees keep going up and they keep subsidizing, it is distorting the market."
Johnson, however, insisted that the Ministry of Tourism is seeking an "alliance", so that when tourists come to The Bahamas there is a brand and service through a number of partners.
Noting that the country has a "huge domestic market", the director general said too many competing flights fly to Family Island locations with insufficient loads.
The plan, he said, will improve the margins and drive more tourism traffic outside of Nassau.
The announcement comes as major aviation associations look to join forces and broker a better deal for domestic carriers.
The Bahamas Association of Air Transport Operations (BAATO) and the Bahamas Aviation Association (BAA) have traditionally worked independently. However, the groups reportedly plan to sit as one body to provide a stronger lobby for government.
"We have so much in common," Butler said. "It is crazy not to unite. I think it will create a lobby so we cannot be ignored."

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