By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

PRIME Minister Perry Christie said officials are in discussions with foreign entities on how to improve the performance of cash strapped Bahamasair.

Since hinting last October that the government was seriously considering privatisation, Mr Christie said there were a number of applications from representatives with an interest in some form of partnership with the airline.

He spoke of the administration’s intentions on Friday.

“Since that speech,” he said, “I have spoken with the Trinidadian government with discussions to be held between Bahamasair and Caribbean Airways that flies internationally.”

“Really with a view to seeing whether there are any advantages to Caribbean Air stopping into New Providence as a hub. Whether on the way to Europe or on their way to different points of the United States of America so that’s in train.

“Secondly we have meetings with the people who are flying into  Freeport using their own 737s to open the Reef Hotel Sun Wing. And when the Canadian market sort of dissipates for the summer we have added  flights from about eight cities using a wet lease Bahamasair 737.  So Bahamasair will be coming from eight cities into Grand Bahama.

“We’ve had another number of applications from people who heard the speech and who are now making representation that they would wish to either enter into a relationship with Bahamasair in some form or the other or some form of partnership or collaborative marketing arrangements. Those are matters that are in train and we will just have to keep you informed of whatever progress.”

Mr Christie reiterated that the government is continuing it’s efforts to decrease the amount of subsidies it awards to Bahamasair. Assistance to Bahamasair has come at a cost of around $500 million over the years.

“I think it’s fair that what we have done is we are making a good faith effort in looking at all of the areas where the government is losing money with a view to seeing what improvements we can make to reduce to a bare minimum the subsidies that we have been dragged into on an increasing basis.

“It becomes more and more a dominant feature in our budget and so this time around as a government we have brought focus to trying to minimise the negative impact of subsidies. Particularly where we  believe we are able to introduce a new paradigm,” he said.