Thursday, August 27, 2020
By LEANDRA ROLLE
Tribune Staff Reporter
lrolle@tribunemedia.net
BAHAMASAIR chairman Tommy Turnquest yesterday described the national airline’s current financial state of affairs due to the COVID-19 pandemic as being “very rough,” adding that officials are anxiously awaiting the government’s greenlight on the resumption of domestic and international travel.
In the meantime, Mr Turnquest said the airline is currently focusing its energy on operational training of its staff.
This comes after government officials said they are eying late October or early November as a potential reopening date for the country’s borders.
“It’s been very rough,” said Mr Turnquest. “There’s been no operations since the 28th or 29th of July. We are awaiting the government’s indication in regard to firstly, domestic travel and then secondly, international travel.
“Bahamasair is using the opportunity for training with a new operating system and so this has been a good time for our staff to get involved in the training. We’ve been looking at the finances in terms of the outstanding payables, what are the cost of operations, types of operation, how are we able to operate in a more efficient manner.”
He added: “And so we’ve been using the time constructively in my view - the executive management, the managers, supervisors and the line staff—all in my view realise that they are getting paid and they’ve got to add some value and I think that they are adding value by undergoing training.
“…We have a maintenance team, they’re going in and turning over their engines. They’ve sanitised everything. We need to be ready. The key is to be able to make sure we can operate.”
On Monday, Prime Minister Dr Hubert Minnis revealed that the government has not yet made a decision concerning salary deferrals for Bahamasair’s employees.
This comes after he warned last month that the government may have to consider deferring a portion of salaries for the airline’s employees as a result of the economic fallout from the COVID-19 crisis.
Yesterday, the chairman told reporters that all salaries had been paid to date. However, he acknowledged that officials are currently engaged in discussions with the Minnis administration concerning its funding for upcoming payment for workers.
He said: “Firstly, let me say that we have paid salaries to date and a salary is due again on Friday and we’re in discussions with the government to fund that. Once that’s funded, we’ll pass it on but we make absolutely no money from lack of operations and we have no reserves unfortunately.”
Asked yesterday if Bahamasair was operating only because of the mercies of the government, he replied: “Well, Bahamasair is always at the mercy of the government. The government is the shareholder representing the people of the Bahamas and no it’s not safe to say that because we only operate in terms of the government.
“The government is our only shareholder. Any company operates on behalf of its shareholders so that’s not earth shattering in any way. We’re not making any revenue so we’re relying on rejection on the shareholder.”
In July, Mr Turnquest warned the airline will “close down” without an increase in taxpayer subsidies after its top-line was cut by $22m due to Hurricane Dorian and COVID-19.
Mr Turnquest, speaking after the national flag carrier was ordered to cease commercial flights into the US, told Tribune Business that revenues for the 2020 financial year that just closed at end-June were likely to be down 24 percent year-over-year - from $92m to $70m.
Comments
joeblow says...
These individuals who have been verifiable failures in public life should not be heading up government entities. We can and must do much better than this!
Posted 27 August 2020, 5:58 p.m. Suggest removal
thps says...
BahamasAir Financial State Very Rough:
Now I thought the Tribune was a news site.
Posted 27 August 2020, 7:25 p.m. Suggest removal
Economist says...
Shut it down. We need the Bahamasair money for food, health services and assistance for those out of work.
Thousands of us and a couple hundred of them. Shut it down, get real.
Posted 27 August 2020, 7:47 p.m. Suggest removal
whogothere says...
Really!? Putting more people on government support? Thats just moving people from basket to the other [god Minnis said that didn't he? oops] - but he has a point furloughing them would still cost 1.75 million per month, severance would cost even more, not to mention the interest on 120 million dollar loan that still needs to be paid, airport fees, etc...There is no other option; they need to get the planes in the air and get American wallets back in the country. Hand washing and social distancing has been the most direct line of defense for respiratory disorders for decades; enforce the mask if you must but get people back in here, get Bahamians back to work, and would everyone please remember this is a bad disease but not the worse by any stretch of the imagination...Case fatality is incredibly low even with MOH pumping up the numbers with unconfirmed deaths. Chances of survival of COVID in the Bahamas is 99.99% on average and if you are young and healthy it's 100%. The chances of death due to homicide much higher (and that was with 10% national unemployment) factoring in sustained 40% unemployment for much longer...the risk to those of working age is going to be a problem. NP peak was august 11th according to Regis. Minnis's mood swings were far scarier...
Posted 27 August 2020, 9:29 p.m. Suggest removal
bogart says...
Thousands other Executives and Decision makers of Airlines around the world have already made decisions to massively reduce Airline staff, pilots by tens of thousands given insight and expertise in running respective Airlines.
Keeping the Bahamasair going in light to slow returns after effects of Covid, effects of travellers massively impacted by depleated savings, unemployment, politicians in overseas markets on possible views of shutting down markets to first have to control Covid before reopening areas etc etc. Local Expert nation decision makers must realize that intake of revenues reduced while financial demands of nation increase from almost all areas ie Care for many recovered with series of Covis After effects medical concerns, financing Medical implementing Covid vaccines facilities etc, concerns of money for physical revisions to facilitate and improve nation Education children, etcetc. Existing finance corncerns of Utitities, etc.,
The writing on wall is clear, its not a bed of roses, regressive VAT taxes greatest effects affecting increased largest level population, depending on food charities now majority nation more below poverty levels, except in elites echelons lala land. Close Bahamasair and redirect funds to other areas.
Posted 27 August 2020, 8:46 p.m. Suggest removal
Amused says...
American Airlines about to layoff 19,000 staff
Finnair airlines 1,000 staff
Bahamas air not making a dime and never turning a profit, let's keep everyone employee smh. Laughable at best
Posted 27 August 2020, 8:53 p.m. Suggest removal
bogart says...
Other Caribbean countries like Jamaica and Trinidad and Tobago no longer with Air Jamaica or BWIA for years now. In these nations facing their national airline situations, there must have been the majority of respective Governments peoples representatives with good knowledge and overall well being of their people and nation come to decision to close the airline.
Posted 27 August 2020, 9:20 p.m. Suggest removal
trueBahamian says...
I don't get it. Bahamasair has been losing money for years. What is the justification for keeping them?
It loses money. Management is a disgrace, if you can actually consider Bahamasair to be managed. It adds no value to us. Shut it down and move on.
Posted 28 August 2020, 10:19 a.m. Suggest removal
donald says...
Government should never be in what should be private business.
Posted 28 August 2020, 8:46 a.m. Suggest removal
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