Signs outsourcing agreement with Western Air Ltd for Andros routes

By MARTELLA MATTHEWS, Guardian Business Reporter, martella@nasguard.com

Bahamasair signed an outsourcing agreement with Western Air Ltd that could save the national flag carrier approximately $1.7 million.

In a press conference Tuesday formalising the new "code sharing" agreement which would allow Bahamasair to outsource its Andros flights to Western Air, Basil Sands, chairman of Bahamasair described the move as one that would allow the airline to reduce capital and operating costs while providing for more frequent air service into Andros.

The agreement is also expected to allow Bahamasair to increase return by freeing up resources that could then be used to capitalise in the carrier's stronger markets.

"By outsourcing the unprofitable routes, we are able to focus on expanding and improving frequency into markets where better returns on investment can realized," Mr. Sands said.

The code sharing arrangement will allow travelers to continue to access Andros flight schedules through Bahamasair's online Sabre Computerised Reservation System. Following on the heels of this agreement, the airline's chairman also revealed that the carrier is currently planning additional outsourcing arrangements for three additional family island destinations, Treasure Cay, North Eleuthera and Arthur's Town. The airline has already put together a committee to submit a report on this proposed development and has sent out tenders for the proposed outsourced areas.

According to Mr. Sands, the airlines new outsourcing agreement is in line with the new focus of expanding into the tourist market. "Bahamasair is now expanding on focusing on the tourism market and we're busily now looking at how we can achieve that," he said. "I can't at this point in time give you any details but in due course we'll let you know how we're going to achieve that area."

Eighty-eight per cent of Bahamasair's revenue is currently generated through local traffic.

At the signing, Rex Rolle, president of Western Air said he foresaw very few difficulties with the proposed agreement.

"This is something we've been doing now for the past three years and adding the reservation system will just help us to be more efficient." Headquartered in San Andros, Western Air has a fleet of five-19 seater metro 3 planes and staff compliment of 50. With the acquisition of the Andros routes from Bahamasair this number is expected to grow by an additional 20. The airline is expected to fly to San Andros, Andros Town, Mangrove Cay and Congo Town daily.

At the Grand Bahama Outlook held last week, Paul Major, managing director of Bahamasair also cited the need for the national flag carrier to look more towards developing its tourist market. He said that major destinations such as Barbados, Dominican Republic, Cuba and Aruba were all outperforming The Bahamas in the area of costs, with airfare constituting a major component of this cost.