U.S. Airlines May Consider Altering Level Of Service To The Island Nation

Airlines, particularly those based in the U.S., are taking a hard look at their level of service to the Bahamas in the wake of new taxes recently imposed by that government, and at least one Bahamian Senator has said the taxes represent a serious threat to tourism in the island nation.

Airlines for America (A4A) warned recently that its members could take a hard look at the level of service provided to the Bahamas in light of the taxes, which include a $50 refueling stop and Customs Processing fee, along with an increase in departure taxes to include aircraft crewmembers. The Bahamian newspaper Tribune 242 reports that in a response, Senator John Bostwick, who is a member of the Opposition Free National Movement party, called on the government to "urgently" revisit the new taxes.

A4A wrote a letter to Bahamian Customs Comptroller Charles Turner June 28 saying that the new taxes and fees would cut into its members "exceedingly slim profit margins," and that it could have an adverse impact on the overall Bahamian economy. Bostwick told the paper that it appears that Michael Halkitis, minister for state finance, has apparently dismissed the concerns of the private aviation industry. Bostwick is the FMN's "Shadow Minister for Tourism."

Bostwick said that the policy cannot be intended to "push away the airline industry at a time when we're trying to fill this big hotel,” referring to the planned 2015 opening of a new resort hotel in Baha Mar. "That is absolute insanity," he said.

The airlines had been looking at increasing the number of seats available to destinations in the Bahamas by 400,000 based on the expected increase in demand. That is now in question, Bostwick said.

FMI: www.bahamas.gov.bs