By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The deputy prime minister yesterday said he views Bahamasair’s multi-million dollar ‘red ink’ as “an investment, not a loss” because of the airline’s importance to tourism and the wider economy.

Chester Cooper, also minister of tourism, investments and aviation, in addressing the House of Assembly on legislative reforms to maintain The Bahamas’ top-tier status with US aviation regulators, disclosed that the national flag carrier had been able to slash its annual loss by 20 percent year-over-year to $24m for 2023.

Hailing Bahamasair’s chief financial officer and his team for bringing the airline’s audits current, he argued that the airline’s importance to enhancing connectivity and access to the destination by opening up new tourism markets and routes was often “under-estimated” by Bahamians.

“Madam Speaker, let me be clear that while I applaud the good work with completing the financial statements, I should also point out that in 2022 Bahamasair lost upwards of $30m,” Mr Cooper revealed. “But I must point out that there’s been a significant improvement. The 203 audit revealed they only lost $24m. That’s a 20 percent improvement. I commend them for their great work.”

The figures disclosed by the deputy prime minister indicate that Bahamasair, which has always relied heavily on taxpayer subsidies to pay bills, make ends meet and keep flying, cut its losses by $6m year-over-year for 2023 compared to the prior year.

Given that the airline’s financial year close is end-June, it aligns with the Government’s Budget cycle. Based on the numbers revealed by Mr Cooper, it would appear that Bahamasair’s 2023 loss was slightly less than the $26.269m subvention budgeted for the 2023 financial year.

The deputy prime minister, meanwhile, signalled that making a profit is not Bahamasair’s primary goal but, rather, helping to grow tourism and the wider economy by providing increased access to this nation while also providing air transportation connectivity to sparsely populated Family Islands that otherwise would not be serviced by commercial airlines.

“Sometimes we under-estimate the importance of Bahamasair to the Commonwealth of The Bahamas,” Mr Cooper said. “I personally don’t look at the $24m as a loss. I look at it as an investment. It’s an investment in the economy of The Bahamas, in the tourism industry.

“Bahamasair is important for the economic benefit, it’s important for the community, it’s important for the regional aspirations. It’s important for us to be able to diversify into new markets and lead new routes to The Bahamas and, of course, it’s in the national interest that we continue to keep a strong national carrier.”

Acknowledging that Bahamasair was often the subject of jokes, Mr Cooper countered that the national flag carrier is “providing such a great national service with a great safety record that we hold them on a pedestal”.

He added that the airline is also likely to play a key role in providing greater air connectivity throughout the region as the Caribbean seeks to develop multi-destination tourism. “It’s our imperative to use the asset of Bahamasair for the good of the entire region,” Mr Cooper said.

“We’re continuing to have those discussions as it relates to multi-destination tourism; how we can create more connectivity to the Caribbean to support our brothers and sisters and their families, and generating more activity in their economies. Bahamasair will be critical to these regional aspirations.”

As for completing outstanding audits, and bringing the carrier’s financials up-to-date, Mr Cooper said: “When we came to office in 2021, Bahamasair was still working on their 2018 financial statements. Over the course of the last three years, they have completed the audits for 2019, 2020, 2021 and 2022, and when I arrived at my office at 7.02 this morning I had the pleasure, the pleasure of seeing the audited financial statements for 2023. This is phenomenal work, Madam Speaker.”

Mr Cooper added that Bahamasair increased its seat capacity with the addition of a fourth Boeing 737 jet in December 2023 - a move that will also aid further expansion of the airline’s route network. And the May 2024 restructuring of its aircraft loan with CIBC Caribbean (Bahamas) has reduced both interest and principal payments, “resulting in significant cost savings” although no sum was mentioned.

Noting that the national flag carrier has completed its International Air Transport Association (IATA) operational safety audit, the deputy prime minister said: “The airline’s new cargo services to Haiti and Cuba, as well as the reopening of mail services to the US, have expanded services and the ability to meet customer needs while driving revenue

“Bahamasair’s new interline agreements with Alaska Airlines and Virgin Atlantic, and the forthcoming agreement with Turkish Airlines, have expanded the airline’s reach and connectivity.” Mr Cooper added that an “extensive report” on Bahamasair has been provided by a team from Qatar Airways, which examined all technical issues at the national flag carrier.

He said one of the key findings is that the national flag carrier “needs more equipment in order to be an effective, profitable regional carrier that meets the national interest of creating connectivity and expanding tourism”.