The Government of The Bahamas has started the search for the partner to purchase a stake in Bahamasair, which is now being readied for privatization.
The Minister of Works and Utilities has announced that the government is inviting expressions of interest from entities and individuals wishing to participate in the ownership and operation of the national flag carrier.
The Ministry says submissions should include a profile of the entity or individual wishing to invest in Bahamasair, including financial and technical qualifications.
In making the announcement, the Ministry said, “The provision of reliable, efficient, low cost airline service is essential to the social and economic development of The Bahamas and the continued growth and development of our vital tourism industry.
“In pursuance of these national development goals, the Government of The Bahamas is committed to privatizing Bahamasair Holdings Limited, the operator of the national flag carrier of The Bahamas. Bahamasair is a government owned limited liability company that currently provides complete airline services throughout The Bahamas, Florida, the Turks and Caicos Islands and Santo Domingo.”
The Ministry indicated that Bahamasair has the potential to be profitable while providing reliable, efficient and competitive airline service once fundamental changes are made.
It also pointed out that the government wishes to facilitate the widest possible participation of Bahamians in a privatized national airline.
The Ministry said sealed expressions of interest submissions should be forwarded to the permanent secretary in the Ministry of Works and Utilities.
Meanwhile, the consultant the government hired to help prepare the airline for privatization is expected to make its final report by the end of July.
The Bahama Journal reported on Tuesday that the consultant, McKinsey and Co, who were hired at a “competitive” fee of $1 million, has already delivered a preliminary report.
McKinsey and Co. is advising Bahamasair to improve operational performance to reduce costs and capture more market share; improve revenue management to achieve higher yields; and minimize crew downtime.
In addition, Bahamasair is being advised to increase labour productivity and right size its present fleet by choosing appropriate aircraft better scaled to demand.
Source: The Bahama Journal
