By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A Bahamian aviation executive yesterday questioned the government's plan for the sector again, and urged: "stop governing by crisis."

Sky Bahamas chief executive, Randy Butler, pictured, was responding to statements by minister of tourism and aviation, Dionisio D'Aguilar, who confirmed to Tribune Business that Bahamasair's lenders have again been asked to defer principal repayment on its $120m loan for another year, as there was simply "no headroom" in the 2018-2019 budget to accommodate such outlays.

Mr Butler told Tribune Business: "all this underscores is the fact that there needs to be a national plan for this industry. What is the future of Bahamasair? What is the vision for the airline, and how will the private-owned airlines factor into it all? We have to stop this governing by crisis; reacting when things happen but not having a plan for the industry."

He recalled statements by then-Deputy Prime Minister Philip Davis, who on the heels of a Bahamasair pilot strike back in December 2014 stated that stakeholders needed to realise the airline was "no longer an essential service".

Still, the Christie administration authorised the $120m loan in 2016 to re-equip Bahamasair's fleet and refinance its existing debt, replacing its Dash-8 planes with five ATR turbo prop aircraft. Interest (debt servicing) costs on the loan are understood to run close to $10m per annum.

"Is it an essential service? Bahamasair doesn't go to most of the Family Islands but is taking Bahamians to Florida every day for shopping trips," Mr Butler said. "There really should be a master plan for Bahamasair. Right now, they could only operate with subsidies. There has to be a goal and a vision. You have to get people to buy-in, and you have to measure the performance."