With the need to increase its revenue base and decrease government subsidization, Chairman of Bahamasair Valentine Grimes admitted over the weekend that the cash-strapped national carrier could not continue as a financially viable entity given its current state of business.
The call to privatize the airline has been adamant over the years, and while speaking with Guardian Business Grimes asserted that the airline is making efforts to improve its revenue sources and reduce operational costs.
The airline's audited report for the 2015/2016 fiscal year is also expected to be released shortly. "I know we have signed off on them," said Grimes.
Bahamasair's audited report that ended June 30, 2014, revealed the grim economic state of the government-owned entity, showing the airline's then deficit of $555.1 million as of year-end.
"We cannot continue business as usual at Bahamasair. We cannot continue to rely so heavily on the government to subsidize Bahamasair," said Grimes.
"I am happy to say that our operational expenses have been significantly reduced by more than 50 percent over the last several years, and if that trend continues then the future would be good for Bahamasair and for the Bahamian people in the industry."
The chairman pointed out that Bahamasair has taken steps to improve its revenue, and one of way doing so, Grimes acknowledged, is by expanding its flight route into the Caribbean. Already, the airline offers flights throughout the week to Cuba and Haiti.
However, he said although the airline will continue to explore other options in the region, he suggested the airline's focus would more so be on expanding its routes from the United States.
"Obviously, the first thing for us is to expand our operations in and out of the United States," he said.
"The region is an option. But it would appear, from where I sit, that flying in and out of other cities and states in the United States would be a better earlier option, not that other options would not be explored in due course."
Grimes also discussed new markets that the airline can explore. He said it would be a "good revenue base" to gain more of a market share with flights to and from Florida and other Family Islands.
And with the anticipated opening of Baha Mar, Grimes noted significant opportunities for the airline. He revealed that preliminary discussions were had with some executives at Baha Mar.

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