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View Full Version : Should the government continue to fund BahamasAir?


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RockWell
10-16-04, - 12:00 AM
After all Bahamas Air is definately not enhancing the lives of Bahamians, its just making us poorer!
Hmmmmmmmm I wonder if U would still think so if U lived in lets say the Southern Bahamas.

Rory
10-16-04, - 12:12 AM
why, dont they have other airlplanes that go down there??

If they are going in debt to transfer people to and fro Nassau and the outislands, that dept should go to those outislands not to us that never use the airline and have no need for it.. if you want to live in an outisland then you have to pay the price, if you arent already. I cant afford to live in an outisland myself, no jobs and more money for importing products.

In fact I havent been on an airline since '96.

Alien
10-16-04, - 01:41 PM
charter planes work just as fine as big jet liners!
people should look more into it...and make it a lucrative bussiness!

the bahamian market is so wide open for the most obvious advances, yet we want to complain!
there are hundred of trained pilots who live here...some who do it as a hobby, other who do it becasue they just want to do it!

but we will get angry with a poor white guy from anywhere else, if he decides to make money off of it!

casualobserver
10-17-04, - 05:32 PM
charter planes work just as fine as big jet liners!
people should look more into it...and make it a lucrative bussiness!

the bahamian market is so wide open for the most obvious advances, yet we want to complain!
there are hundred of trained pilots who live here...some who do it as a hobby, other who do it becasue they just want to do it!

but we will get angry with a poor white guy from anywhere else, if he decides to make money off of it!


Doesn't the government subsidize the mail boat system? Aren't these vessels under a special class of boat that can carry passengers and cargo? The Bahamas is a SEAFARING nation isn't it? The last time I looked, there were many a new vessel laying at Potter's Cay. Money is being made there, obviously.

Alien
10-17-04, - 10:15 PM
Doesn't the government subsidize the mail boat system? Aren't these vessels under a special class of boat that can carry passengers and cargo? The Bahamas is a SEAFARING nation isn't it? The last time I looked, there were many a new vessel laying at Potter's Cay. Money is being made there, obviously.


thank you for saying that../
we used to make money on shipping easily...in fact bimini was supposed to have plans on the table for becoming a shipping mecca...
a stop gap between the u.s britain and the carribean!
:sailing:

casualobserver
10-18-04, - 12:46 PM
thank you for saying that../
we used to make money on shipping easily...in fact bimini was supposed to have plans on the table for becoming a shipping mecca...
a stop gap between the u.s britain and the carribean!
:sailing:


Obviously, that idea moved to Freeport! What about a ferry service into/out of Nassau? I know a number of people tried it, but what became of them and why? It seems to me that the easiest way to move people and products is by ship, so if a fast ship can do in 1 trip what a plane can do in 3 or 4, it makes more sense.

Nice boat icon, y2kbad!

Alien
10-18-04, - 02:49 PM
Obviously, that idea moved to Freeport! What about a ferry service into/out of Nassau? I know a number of people tried it, but what became of them and why? It seems to me that the easiest way to move people and products is by ship, so if a fast ship can do in 1 trip what a plane can do in 3 or 4, it makes more sense.

Nice boat icon, y2kbad!


maybe they should have a mail boat system or something going to and from nassau and the outislands!
:screw:

casualobserver
10-18-04, - 03:30 PM
maybe they should have a mail boat system or something going to and from nassau and the outislands!


Sarcasm noted!
What we need is a true ferry SYSTEM like they have in other archipelagoes like Greece, Canary Islands, etc. Big, fast, on time vessels that can move a lot at one time. Using real PASSENGER TEMINALS to move both locals and tourists between the islands. Entire outislands could become bedroom communities for the capital. Look what benefit is seen in Harbour Island by having the Bo Hengy make numerous, routine trips there. Imaging that spreading throughout all the islands!

Take a deep breath, calm down, and imagine this: Instead of driving for 40+ minutes to get home in traffic, you could sleep on a ferry for an hour to go home to a residential island! Gov't could move a lot of its overburdened infrastructure to other areas like Andros, thereby alleviating more traffic congestion.
OK! get back to reality and get back to work!

When does CG chime in on this subject? Delroy, should this be a new thread?

CG
10-18-04, - 04:27 PM
Sarcasm noted!
What we need is a true ferry SYSTEM like they have in other archipelagoes like Greece, Canary Islands, etc. Big, fast, on time vessels that can move a lot at one time. Using real PASSENGER TEMINALS to move both locals and tourists between the islands. Entire outislands could become bedroom communities for the capital. Look what benefit is seen in Harbour Island by having the Bo Hengy make numerous, routine trips there. Imaging that spreading throughout all the islands!

Take a deep breath, calm down, and imagine this: Instead of driving for 40+ minutes to get home in traffic, you could sleep on a ferry for an hour to go home to a residential island! Gov't could move a lot of its overburdened infrastructure to other areas like Andros, thereby alleviating more traffic congestion.
OK! get back to reality and get back to work!

When does CG chime in on this subject? Delroy, should this be a new thread?


OK. I'll chime in!

What you picture would be wonderful, drive on to a ferry and glide home to Andros, Abaco or another island. Wonderful!

I have often said that to much goes on in Nassau. We should spread things out to the other islands. But I doubt it will happen - it should happen but it will not. Moving people out of Nassau means moving voters out of Nassau. No party, particularly the PLP, would want to dilute their base. Until we change our political ways, other ways cannot happen. There is much in this country that needs "fixing." It cannot be fixed until we change our way of voting. Everything our political parties do is based on votes! Their eyes are only on the next election. That is what is holding us back!!! :realmad:

casualobserver
10-19-04, - 10:52 AM
Everything our political parties do is based on votes! Their eyes are only on the next election. That is what is holding us back!!!


I heard that the ferry isnt allowed to have a boat to Nassau/US. You would think that a business like that (employing many people) would get more attention and thus votes! :confused:

Ashari
11-15-04, - 03:38 PM
I think that the BahamasAir should be partially privatized. By that I mean that most of it should be sold to a private entity, yet the government should retain some sort of ownership. As long as it is fully supported by the government I feel that there will not be an incentive to change the work culture, the managerial culture and the profitability will be minimal. Just like any business, if there is no threat of someone taking away your business, if you get paid regardless of whether or not you show up to work on time, do your job properly or not or decide to fly from Nassau to Grand Bahama on time after the first two schedule flights, then you will have NO incentive to change your attitude.
Now I think that government should retain some ownership for the mere fact that it is the national flag carrier if nothing else.

NASBWI
11-17-04, - 03:34 PM
I, too, believe that Bahamasair should at least be partially privatized (if not wholly privatized). However, for investors to take interest, there has to be some kind of incentive. After all, I wouldn't want to sink my hard-earned money into a doomed project.

Firstly, Bahamasair (as someone mentioned) competes fiercely with mailboats/ferries, especially to the further family islands (where many of the peoples' needs are met by the mailboat). Second, I feel that Bahamasair is operating too many of the wrong types of aircraft. Don't get me wrong; I love the Dash 8s (I'm a huge turboprop fan), but considering the fact that the majority of the country's population resides in either Nassau or Freeport, I don't believe that there is market strong enough in other islands to warrant the service of a 50+ seat aircraft. My idea for a "fleet renewal" would be to reduce the amount of Dash 8s in the fleet, and dispatch the remaining aircraft on the most lucrative inter-island/south Florida routes (Freeport, Marsh Harbour, North Eleuthera, Rock Sound, Miami, Ft Lauderdale) as a sort of shuttle. That way, we don't have airplanes sitting on the tarmac not making money.

As for the less populated islands or weaker markets, outsource the business to a charter company (I believe Bair does this already). By doing this, the charter companies can earn much-needed revenue, and Bahamasair gets a cut out of the deal.

Another reason to privatize (completely rather than partially) would indeed be to 'weed out' the bad apples in the bunch. Across the globe (not just at home) one would find that it's easy to pilfer and take advantage of a government job. Why? Because the government job is like a 'sure thing'. Unless something drastic happens, it's unlikely that you'll be let go. That said, where is the incentive to actually perform as though you care about your job? I say get rid of that 'security', and have everyone trained in a manner that will boost productivity and perhaps even guide the airline to profitability. Perhaps providing a serious incentive (like profit-sharing) for employees would strengthen the morale of the employees and thus create a brighter and more positive attitude in which they can work. With something to lose (and perhaps something to gain), employees realize that their demands results, and they will be eager to deliver them.

Perhaps I'm ridiculously optimistic, but that's just my two cents.

George

Lindbergh Smith
12-16-04, - 03:24 PM
Its very interesting to hear the Minister continuously announce the Governments intention of privatizing Bahamas -Air since coming to office.
The action of privatization is not an easy one for many governments within the westminster system of governance. The sale of Bahamas -Air being considered a national Asset, (" And yes it is considered a national Asset despite it's present circumstances and financial burden", strange but true")is not an easy task for any Government under this system to easily rid it self of.
The thoughts are due to the Politically ramification and or fallout. The Government would have to withstand extreme attacks by the opposing political party once it is done. Whether this is the Telecommunications Company , Electricity or any Government managed entity it remains an item that they would have to bear during the electorial process particulary if the new owners are failing with its operations yet still after having acquired the entity.

No Government wants to be left with the fallout of failure over the sale of a National Asset. The continuous operation of the business must carry on, however we all know this would not happen in the private business sector world.

Much like what's happening in Jamaica with respect to Air Jamaica. The company did well before (9/11) However after the terriost attack, the global fall out for the tourism industry wrecked many airlines including Air Jamaica.

The Government of Jamaica is now having to buy back additonal shares ( At an agreed reduced price below market value) before the sale was completed to the new Operator Butch Stewart, which now gives it a share participation of 45% from its initial share position after the sale of owning only25%.

If we were to use this model for Bahamas Air to identify the success of this Airline i would have to say a resounding "YES" its high time Bahamas -Air was sold. The Local domestic route could be outsourced to smaller privately owned
charter companies with stringent guidlines for the operation of their business meeting regulatory standards, however not administerd by any Bahamain entity but by the very one Bahamas -Air adhere's too; when, and if, it wants to fly into the United States. The FAA with their personnel on the ground here locally, would administer and work parrell with the Ministry of Transport to regulate just as we do in our waters along with the US DEA and US Coast Guard and all other US law enforcxement agencies. After all Americans fly to the family Islands as well and 87% of our visitors comes from the US.

When Air Jamaica was sold, it was poorly managed by the Government as is Bahamas-Air with little or no equipment and extremely overly staffed.
When it was sold, it was sold without its debt as this as written off by the Government before it's sale. The new management team immediately began the process of upgrading its fleet with brand new aircrafts. The established extensive routes to Europe, Asia Pacific, The Caribbean and 75 % of the main Air-ports of the United States. This was very successful indeed, the Airline began to see its revenue increase tremdously; money was every where for Air Jamaica.

The company increased its work force and was one of the best managed airlines within this entire region inclusive of the United Sates and Canada. They were the envy of many other airlines in the Industry, up until 9/11. They created an ESOP (Employee Stock Option) as well for its employees and raised millions through private equity Financing in Europe to fund the airline future goals.

After 9/11 the entire airline Industry worldwide went belly up and Air Jamaica was no exception. The interesting methodology here is though, that since having to sell the Government back some of its shares because of its inability to pay the government its outstanding debt the value of the shares of Air Jamaica has increase by almost 20 times its value initially when the government owned it. SO what the government is now getting a piece of, is an Airline that was worth 10Million and now worth well over $1.7 Billion dollars.

The value of the Governments shares has increase tremendously much to the delight of the Jamaican Government.They can now offer these shares on the open global market and command an attractive price for their shares again. Its like being paid twice for the same asset simply because the operator could not maintain his market share because of a little down time in the market place so they sold a little back to the entity ( the government of Jamaica ) whom had first option to acquire shares from the company they originally sold too in order to protect their national Asset and their Tourism Industry to ensure that they would always have some particpation in the market place.

This is what needs to be done with a Bahamas -Air. The problem here though, is there may be some mis-alignment of Interest as to whom the players would be locally to get this done, and whom has the global financing relationship to raise the type of funding needed to push Bahamas Air to where it needs to be. The usually suspects our all lined up, but do they have the real interest to get this done right. And how would it play out politically is still yet the big question.

Iupdate
01-25-05, - 04:52 PM
I’ll agree also to a certain point that “this here” issue is more a local political resolving problem (as is with most issues in this country if not others) more than it is a Bahamas air team problem. It is difficult to dwell on all the facts that plagues Bahamas air situation, but if we ought to bring Bahamas air out of a stall and save it from a crash, if our government is serious, then, there are many points to be considered.

First of all and at this time, setting up the players who know what to do or how to do is overwhelmed by the war on terror the international crises that is plaguing the international community, as it is, almost everything is trapped in this cocoon. The world is in a gambling game on the war on terror and the bets are on the Bush administration to fix this problem (but their guess is just as good or bad as mine and I see that their efforts have made and are making it worst, but that is another subject). I do not at all blame everything on the war on terror or 9/11, we all can agree that before everything got stuck in a cocoon Bahamas air was already in a critical stall.

At the moment no one in their right mind should be willing to put huge sums of money into airline or airline stocks more less an ailing airline such as Bahamas air. If one buys Bahamas air, what will he get for the big price tag anyway? Well, he will get the rights to a few routs, possibly Bahamas air license, a few old jets, a huge debt and over staffed bundle of unprofessional angry and under motivated employees. What to do with all this is another story.

Well, as for now fortunately or unfortunately, we are all the owners (because we pay for UP and I am glad to pay to fly UP) and our manager and operator is our government and they are stuck with it, so it seems. The time is passed politically or otherwise. As whether to sell Bahamas air or not and how much of it to keep or sell? I think this is besides the question at the moment. Since the government is stuck with it, the question is what to do with it? What should the government do with it? Should Bahamas air be sold to a private entity or should the Bahamas government continue to invest in it?

I don’t thing that Bahamas air is an attractive bargain and is far from being in an impressive bargaining position at the moment so that leave the holders of this airline with very limited options and one is to hold on to it at least for the time being and hope for the change in this industry to come soon (there is no light in the tunnel for this happening anytime soon).

So, holding on to Bahamas air as it is, makes very little sense, so then shuffling the cards including the players make a whole lot more sense at least much more than it is making now. Bahamas air continues into a stall, smart decisions must be implemented, the right buttons must be push to bring it out of a stall otherwise Bahamas air will most inevitable suffer its fatality.

1. Do the opposite what it is doing now, fly/purchase more props Saabs, DH8, ATRs, etc, Props are much slower but props such as Saabs are picking up speed, increasing capacity and is more efficient.

2. To keep jets mean international flights, that’s ok as long as the engines are fuel efficient as they can make it, as long as the routs are restricted to the South Florida routs only, I suggest that all other routs be cut. US carriers are stronger and are in better position to handle other US cities and states. Think on the dollars this might save on the high cost of fuel, promotion and advertising dollars. Why go to other US cities especially when going into other US cities will yield nothing more than a tiny pinch out of a slice of the pie. Why settle for cities that return perhaps far less then the government is collecting from the airport taxes for each passenger.

3. Spread-out, go inter-Island, create programs and encourage foreign and local investments, and spread the investments to our family islands from the distant south, center and to the north Bahamas. For the cost of promoting routs into Washington and other US cities, why do these whereas US carries handle further distant cities very well. It makes far more sense to allocate funds that promote these cities to local inter island events or programs, promotions and investments so that not only more residents are attracted to these islands but also our lucrative tourist market is spread out among our family of islands as well.

Spreading out will be a triple score, many residents of these islands will be encourage to seek employment in their home island thus alleviating some of the local traffic here in Nassau and NP. Two it will eliminate the spending on road construction (especially where improving the roads for automobile traffic flow will only work for about 5 to 10 years before we have the same problem again). By doing so traffic will be diverted to many islands and increasing revenues in and out of Nassau for air carries especially Bair.

So then we come to a political statue in the middle of the road. This move is an advantage for politicians also, if they are real politicians they will know how to capitalize on this as an advantage. Determining who goes where and who stays here (Nas) is a design for any or all political party to handle an encouragement for all voters to saturate the job market in these islands just as did the people of Eleuthera once dominated the positions at UP and NFS (Nassau Flight Service) operations at the NIA here in Nassau during the 80s and early 90s a strong hold for the MP Mr Philip Bethel (I think that’s who it was at the time) and PLParty at the time. Spreading out is a no minus to any interest it is a plus for all.

Spreading out is a bigger advantage to the economy (if only we set the efforts behind this more than wars we will gain much more) a plus to gain the monopoly for this country, its citizens, resources and assets like Bahamas air including all vessels? Bahamas air will not be sold anytime soon especially now that all airlines are losing money and are forced to fly at 50% discounted fares in order to survive the deliverance promised by the Bush administration. So then, if Bahamas-air is to survive to this point so that it can be sold, then it must build momentum so that when the time comes it can at least twist and shake it self out of this cocoon.

Iupdate
01-26-05, - 08:00 PM
At the time I wrote the previous article I was unaware of the article in the Punch on the front page “BROKE B-AIR TO PAY $1mil FOR SELL-OFF ADVICE”. I can not believe that this article is true, I can not believe that the government is paying 1mil for advice on how to sell Bair at this time, I wonder if this is a “buddy” deal! :dgi:. Well there is a lot of advice here and they can download it for free. If the government try the advice that are here and fail at least they do not waist 1 million dollars, but the advice they are paying one million dollars now will join the rest of the other failed papers stacked in boxes that have cost millions of dollars. If they are sure of what they are doing they should put up their own money for these advice, but they know better because the advice will fail particularly now because this is certainly not the time to be wasting the kind of money they are doing now.