The Free National Movement (FNM) government's decision to repay principal payments for Bahamasair's French-manufactured planes may come at an additional cost of $35 million, according to Minister of Finance Peter Turnquest.
During the budget debate yesterday, Turnquest pointed out that Bahamasair is one of the six largest government subsidies, accounting for a $14.9 million subvention in the upcoming fiscal year.
Turnquest said the five ATR aircraft purchased under the Christie administration, would cost the new government "potentially another $35 million" if Tourism Minister Dionisio D'Aguilar is not successful in an "intervention".
"The principal payments are due. We have only been paying the interest. We now have principals coming home. You have to pay," said Turnquest.
"We have to make a decision about what we are going to do.
"We will do something about it."
In discussions related to restructuring the cash-strapped airline, privatization has often been discussed by government officials and members of the public.
But to date, no official move has been made on the matter.
When asked about the FNM government's decision on privatizing the airline, Turnquest said the tourism minister would best answer the question.
Guardian Business could not reach D'Aguilar up to press time.
Meanwhile, Turnquest continued to assert the government's plan to reform the airline.
"At the end of day, we have been committed to some very significant support to that agency," he said.
"We have to rationalize and get a better grip on the payout plan - how and when will it provide a return to the Bahamian people."
The government has to support 25 state-owned enterprises, which amounts to $429 million in the 2017/2018 fiscal year.

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