NASSAU, BAHAMAS – Bahamasair's revenue is projected to grow by as much as $8 million in the coming year due to strategic investments in additional aircraft to expand seat capacity and introduce new routes, according to Deputy Prime Minister Chester Cooper.
Cooper, the Minister of Tourism, Aviation, and Investments, highlighted the improved financial performance of Bahamasair during his budget communication, noting that taxpayer support to the national flag carrier currently amounts to over $20 million annually.
"We have modestly reduced the subvention for Bahamasair this year by several million. We have placed great emphasis on establishing new international routes, such as Tampa, Cincinnati, Cleveland, and Nashville to Freeport, extending onward to Nassau. Furthermore, we have reinstated Bahamasair's seasonal flights between Freeport and Orlando, while also introducing a new route from Freeport to Raleigh Durham. We are also considering another route from Fort Lauderdale to George Town, Exuma. These international flights bring in tourists who tend to spend more, thus maximizing the economic benefits of our substantial investment in our national flag carrier," stated Cooper.
He further revealed that Bahamasair has been actively upgrading its fleet, with the recent acquisition of an additional B737-700 Next Generation aircraft in May 2023. The aircraft which expected to commence operations by August, will enable the airline to introduce more routes and accommodate an extra 148 seats. As a result, Bahamasair anticipates a revenue increase of up to $8 million in the next year, prompting a reevaluation of the required level of taxpayer support in the medium term.
Cooper also shared that the airline aims to bring its financial statements up to date by December 2023. This achievement will facilitate the refinancing of the existing aircraft loan, potentially leading to significant savings by reducing the current 13 percent interest rate. The payoff and restructuring of loan commitments will also pave the way for management to seek additional capital funding to support the acquisition of another aircraft in the upcoming fiscal year.
Furthermore, Cooper highlighted Bahamasair's strong partnerships with several key airlines as interline partners, including Delta, COPA, British Airways, United, with others soon to be announced. Looking ahead to the next fiscal year, Bahamasair is targeting 10 additional airlines for codeshare and interline agreements, aiming to create seamless travel connections worldwide.
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