Bahamasair, the national flag carrier, will cost taxpayers $40 million in the 2018/2019 fiscal year, Minister of Tourism and Aviation Dionsio D'Aguilar revealed during the budget debate on Thursday night.
He noted that Bahamasair, with the assistance of the government, acquired five new ATR aircraft through a $120 million collateral loan, a loan which poses a $25 million annual burden on the Bahamian people.
D'Aguilar said the first loan repayment was due this month, but it was extended to September 2018.
He said this, combined with the $14 million in
government subvention provided to Bahamasair, the government has to find nearly $40 million for the flagship carrier.
"To this end, my ministry will work along with the Ministry of Finance - we have no choice - Bahamasair and the lenders to better align the payment schedule, which we have done, that will take into account the extended life of the aircraft," the minister said.
D'Aguilar said Bahamasair has lost money for many years and the government must decide on the direction to take.
D'Aguilar said although Bahamasair continues to be a relevant entity for air transport to, and around, The Bahamas it remains reliant on the government for its day-to-day operations.
He said change is required if it is to be self-sustaining.
The minister said he has long expressed a desire for the company to get out of the domestic market and allow Bahamian-owned and operated airline companies to take over servicing domestic routes.
"It is clearly obvious that I would not allow this to happen until the local providers of air travel domestically had made their supply more robust and their planes better, but I think this should be a goal of the government to remove itself from the provision of domestic air travel," he said.
"I think we should give the local companies a chance to grow, flourish and to allow the sector of private aviation to excel."
D'Aguilar said he has directed the management to reposition Bahamasair to focus more on expanding international routes with a gradual decrease of domestic services.
He said the vision is for private companies to deal with the domestic market while Bahamasair is used strategically to open international markets to bring new visitors to The Bahamas.
He noted there has been positive returns with Bahamasair servicing Port-au-Prince, Haiti earlier this year.
The airline will commence service to Houston, Texas and Chicago, Illinois before Thanksgiving, he said.

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