Bahamasair expects to grow its revenue by $8 million as a result of the acquisition of another Boeing 737-700 and the addition of new routes, Minister of Tourism, Investments and Aviation Chester Cooper said yesterday.
Cooper, who gave the figure during his contribution to the 2023/2024 budget debate, said the airline also expects to pay off and restructure some of its debt, which he said could result in millions of dollars worth of savings for the airline.
"If you would note, we have modestly reduced the subvention for Bahamasair this year by several million," said Cooper.
"We have placed a great deal of focus on new international routes: Tampa, Cincinnati, Cleveland and Nashville to Freeport and onward to Nassau.
"We have also returned Bahamasair's seasonal flights between Freeport and Orlando, and added a new route from Freeport to Raleigh-Durham, and hopefully another from Fort Lauderdale to George Town, Exuma.
"These international flights bring tourists who spend more and maximize the economic benefit of our $20 million-plus investment per year in our national flag carrier."
He added: "When we came to office, the financial reporting of Bahamasair was unacceptably in arrears. The airline has since successfully completed its 2020 financials and provided the 2021 and 2022 trial balances to external auditors. Bahamasair expects to be fully up to date with its financial statements by December 2023. This will allow for the refinancing of the airline's existing aircraft loan, to reduce from the present 13 percent interest rate for what we are hoping will create millions in savings."
He said the payoff and rewriting of the airline's loan commitments will allow for access to more capital funding that will lead to the acquisition of another aircraft in the 2023/2024 fiscal year.
The recent Boeing 737-700 purchase occurred at the end of May 2023. That aircraft is expected to be in service by August, Cooper said. He explained that that aircraft adds 148 extra seats and opens new routes.
According to Cooper, the airline will also begin cargo flights into Cuba and Haiti this summer, during hours when its aircraft are not flying passengers, as an added revenue earner.
He said the airline will also enter into more codeshare agreements.
"Management is placing a high priority in advancing interline and codeshare partnerships with industry airlines, where we can operate as legs in a route or on behalf of another airline," said Cooper.
"Bahamasair presently has several key airlines as interline partners including Delta, COPA, British Airways, United and others to be announced soon.
"For the upcoming fiscal year, Bahamasair is targeting ten additional airlines for codeshare/interline agreements, to create seamless travel throughout the world."
He added that the airline is developing an "important partnership" with Qatar Airways in order to develop new routes and cargo services, and to receive technical assistance.
Click here to read more at The Nassau Guardian
