Bahamasair has incurred an accumulated deficit of nearly $450 million since it was incorporated in 1973, according to the airline's 2008-2009 financial report in which the auditor raised doubts about the national flag carrier's future sustainability.

The financial statement for Bahamasair's last fiscal year ending June 30, which was tabled in the House of Assembly yesterday by Minister of Pubic Works (with responsibility for Bahamasair) Neko Grant, indicates that the company has amassed a deficit of $449,452,964.

During the last fiscal year alone, the company's net loss stood at $12,991,212 - a decrease from the previous year, which saw a net loss of $22,579,069.

According to the audited report, which was done by Deloitte and Touche, Bahamasair's current liabilities exceed its current assets by $12,230,774.

The report shows that Bahamasair's current assets totaled $17,141,338 and its liabilities totaled $29,372,112.

"These factors raise a significant doubt as to whether the company will be able to continue as a going concern without the continued financial support of the government," the auditor said. "The government has agreed to provide such financial support and assistance to the company to enable it to meet its obligations and continue as a going concern."



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