04242023 BUSINESS

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PM’s Bermuda flight ‘reckless, negligent’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Prime Minister’s Bermuda trip has flown into a fresh storm of controversy as the airline responsible is battling a $200,000 fine over accusations it operated the flight in a “negligent and/or reckless” manner.

Western Air, which carried Philip Davis KC, ex-prime minister Perry Christie and multiple Cabinet ministers, Senators and PLP officials to the mid-Atlantic island on October 19, 2022, raced to the Supreme Court earlier this month to successfully obtain an injunction barring the Civil Aviation Authority from suspending three key employees over the affair and inflicting “real and irreparable damage” to its peak Easter travel business.

• Western Air battles $200k fine, 90-day suspensions

• Feared ‘real and irreparable damage’ over Easter

• Judge bars Civil Aviation from enforcement action

Justice Petra HannaAdderley, in her April 11, 2023, verdict that barred the Bahamian regulator from both enforcing the fine and suspensions, revealed that the flight at the centre of the aviation safety and regulatory dispute was the trip undertaken by the Prime Minister and his delegation. They were invited by Bermuda premier, David Burt, with Mr Davis addressing the ruling Progressive Labour Party conference.

The Civil Aviation Authority, in moving to initiate “enforcement action” against Western Air via the $200,000 fine, also sought 90-day suspensions for Captain Gregory Rolle, the airline’s senior pilot and flight instructor; Captain Caneil Cartwright, a senior pilot; and Jason Nairn, manager of its Flight Control Centre, over their roles in the Prime Minister’s Bermuda trip.

However, Justice Hanna-Adderley maintained “the status quo”

Tourism ‘doesn’t need any more’ air fare fees

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamas must work with the airline industry “to put a ceiling” on travel costs to the destination, a senior hotelier is asserting, as this nation “doesn’t need any more taxes” included in ticket prices.

and granted Western Air’s injunction while ordering that the airline must launch its Judicial Review challenge to the Civil Aviation Authority’s decision and its enforcement by May 1, 2023.

Rex Rolle, Western Air’s president, director and accountable manager, had received a letter from Alexander Ferguson, Civil Aviation’s

SEE PAGE B7

Air fares blamed for 20% Briland villa rentals drop

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A HARBOUR Island realtor has blamed “crazy” air fares that have more than doubled compared to pre-COVID for a 20 percent slowdown in high-end villa rentals during the 2023 peak winter season.

James Malcolm, of the Bahamas Property Group, told Tribune Business that while some clients were prepared to pay up to $20,000-$30,000 per week to rent prime properties they are very “sensitive” to costs they deem unreasonable

and are reluctant to “over pay for air fares”.

Noting that round-trip air fares into Eleuthera from the US have more than doubled since the pandemic,

SEE PAGE B4

Hotel union: ‘One item’ away on industrial deal

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE HOTEL union’s president says it is just “one item” away from concluding an industrial agreement with the main employer body, and believes once it is completed other “dominoes” will fall.

Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union’s (BHCAWU) chief, told Tribune Business that he hopes to close negotiations with the Bahamas Hotel and Restaurant Employers Association, which represents Atlantis in particular, “in short order” on a deal that will result in members

DARRIN WOODS

being paid in accordance with the sector’s status as the country’s “number one industry”.

And he forecast that successfully completing those talks will have a “cascading” effect that results in

SEE PAGE B8

But Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, while acknowledging frustration that taxes are now higher than the cost of airline tickets themselves nevertheless told Tribune Business the situation cannot be viewed in isolation or without understanding what they pay for.

Of the roughly $150 in taxes and fees built-into airline tickets, he explained that The Bahamas accounts for around two-thirds of this sum - some $90-$100. And, of the latter figure, the largest component is a passenger user fee which finances repayment of

the $409.5m debt funding for Lynden Pindling International’s (LPIA) transformation into a “world class facility” demanded by Bahamians and visitors alike. Without such a stopover visitor gateway to facilitate the growth in air arrivals, Mr Sands told this newspaper that The Bahamas and its largest industry would be “dead in the water”.

The BHTA chief, though, conceded that this nation’s status as a high-cost destination was pricing some potential visitors out of

PHILIP DAVIS KC

ROBERT SANDS

JAMES MALCOLM

WATER CORP TARGETS FURTHER 57% SYSTEM LOSS REDUCTION

THE Water & Sewerage Corporation has extended by four-and-a-half years a contract that has saved itself and its customers more than $153m over the past decade.

The state-owned utility, in a statement, confirmed it has now contracted MIYA Bahamas until December 31, 2026, to help further reduce non-revenue water (NRW) losses from its system by another 57 percent by that deadline.

Non-revenue water is water lost from the Water & Sewerage Corporation’s pipe network before it reaches the end-consumer.

It added that MIYA, which was originally hired on February 17, 2012, has over the past decade slashed such losses - which represent a major financial drain on the utility - by 49 percent through cutting them from 6.87m imperial gallons per day to 3.5m.

It is this reduction that has saved the Water & Sewerage Corporation and its consumers some $153.062m, and the MIYA extension is targeting a further drop from 3.5m imperial gallons per day to just 1.5m by the time the

contract ends at the close of 2026. Should this be achieved, the non-revenue water losses that will have been prevented will rise by a further 44 percent - from the current 13.68bn imperial gallons to 19.75bn.

The extension to the original contract, which expired last year on April 16, 2022, also provides for a structured transition of non-revenue water responsibilities from MIYA to the Water & Sewerage Corporation. A team from the latter, which will shadow its MIYA counterparts, will be in place by year-end 2023, and be ready to take over by end-2025.

“When project work began in January 2013, the non-revenue water was 6.87m imperial gallons per day, and Water & Sewerage Corporation was having difficulty supplying New Providence with water continuously for 24 hours a day,” the Water & Sewerage Corporation said in a statement.

“Instead, water supply was being rationed with many areas without water supply for several hours each today. Our sales were in the range of around 5.3m imperial gallons per day, and it was difficult for us to attract any new major customers given our very challenging circumstances.”

It added that, rather than continuing to expand fossil-fuel intensive reverse osmosis water production, in 2010 the utility “made the bold decision to implement a program to reduce non-revenue water based on performance, using world leading non-revenue water experts in collaboration with Bahamian field teams and contractors.

“According to the project’s performance targets, it is predicted that the

programme has already saved close to 13.68bn imperial gallons of water. By the end of 2026, these savings should reach 19.75bn imperial gallons. The amount saved on water purchases is around $153.062m. However, that figure excludes the cost of any new infrastructure put in place as part of the project nor other Water & Sewerage Corporation internal operational efficiency improvements,” the statement added.

“Most importantly, the non-revenue water programme has facilitated a marked increase in the reliability and continuity of Water & Sewerage Corporation’s New Providence water supply with 24/7 supply now in place for many years and, in parallel, the Water & Sewerage Corporation has been able to increase our water sales from approximately 5.3m imperial gallons per day in 2013 to over 7.5m

FROM L to R: Gregory Stubbs, Water & Sewerage Corporation general manager for the Family Islands; Patrice Munroe, Water & Sewerage Corporation general manager; Robert Deal, Water & Sewerage Corporation general manager; Alvin Sargent, Water & Sewerage Corporation Board member; Torez Hanna, Water & Sewerage Corporation deputy chairman; Alvaro Ramalho, MIYA Bahamas country manager; Cyprian Gibson, Water & Sewerage Corporation deputy general manager; Art Trogo, project manager, MIYA Bahamas; Preston Rahming, senior manager, Water & Sewerage Corporation; Selvin Basden, director of human resources, Water & Sewerage Corporation.

imperial gallons per day with no increase in water production.”

The Water & Sewerage Corporation added that the non-revenue water (NRW) initiative has “enabled a significant improvement in the consistency and reliability” of its New Providence water supply, which has been available “aroundthe-clock” for many years.

Photo:Digital Kafe

ROYAL CARIBBEAN: PI ‘100% RENEWABLE’ WITH ZERO WASTE

ROYAL Caribbean yesterday pledged that its $110m Paradise Island project will contribute “zero” waste to the New Providence landfill and employ “100 percent renewable energy by 2030”.

The cruise giant, in a statement responding to the concerns voiced by Atlantis and others, said the environmental plans for its Royal Beach Club are built on what it described as “six focuses” - zero waste-tolandfill, renewable energy, wastewater treatment, protecting and enhancing the surrounding habitats, and environmental monitoring.

However, the project’s website may revive concerns over whether the 17-acre site on Paradise Island’s western end in the vicinity of Colonial Beach can accommodate the targeted number of guests. Royal Caribbean executives have said the daily average will be 2,750 guests, but the project’s website still says it plans to offer “a world-class, family-beach experience for up to 3,800 visitors”.

Both Atlantis and Eric Carey, the former Bahamas National Trust (BNT) executive director who will be reviewing Royal Caribbean’s Environmental

Impact Assessment (EIA) on the mega resort’s behalf, have questioned whether the proposed location can withstand such numbers without any environmental impact. It is unclear whether Royal Caribbean has updated the project’s website in recent months.

However, in promising that the Royal Beach Club will contribute no extra waste to the landfill, the cruise line said: “The beach club will be free of single-use plastics and offer compostable service ware at food and beverage venues.

“In addition, it will be equipped with biodigesters to reduce food and other

organic waste, and process cooking oil into biodiesel for energy production. The cruise line will also develop partnerships with local Bahamian companies focused on recycling and innovative waste reduction programmes.

“Royal Caribbean is committed to a net-zero carbon footprint for the Royal Beach Club by 2030,” it added of its renewable goals. “The project will incorporate smart design considerations during construction, including natural shade, low flow filters and more. The line will also invest in renewable green energy production

DISNEY TEAMS WITH BTVI FOR ELEUTHERA EXPANSION

By FAY SIMMONS jsimmons@ tribunemedia.net

THE Bahamas Technical and Vocational Institute (BTVI) has partnered with Disney Cruise Line to construct a new campus in Eleuthera for the training of its residents.

Joey Gaskins, Disney’s regional public affairs director for The Bahamas and Caribbean, told the Eleuthera Business Outlook conference that the cruise line had partnered with BTVI’s interim president, Dr Linda Davis, and her team in a bid to ensure Eleuthera residents are equipped with the skills necessary to participate in its Lighthouse Point development and other investment projects in the pipeline for the island.

“In February of this year, Dr Linda and her team from BTVI, and a few ministers, found a site in Greencastle and they want to bring access to vocational and technical education to the people of Eleuthera,” he added. “We’re heard about the billions of dollars of investment in Eleuthera, [but] are Eleutherans trained to able to take advantage of those investments? That’s

the question that Dr Linda asked us.

“[We] worked internally to secure the necessary funding to ensure that we could move this project forward by refurbishing the building at Greencastle, so that we can house BTVI. And so I want to announce that to the people of Eleuthera, let them know that BTVI is coming with the support of Disney Cruise Line. And we are so happy to support this work.”

Dr Davis, speaking at the same conference, called for more public-privatepartnerships (PPPs) to solve the skilled labour shortage and expand BTVI’s reach in The Bahamas. She said:

“Eleuthera is clearly on the move and BTVI stands ready and excited to partner with each and every one of you here today to find new solutions to our skilled labour shortage.

“I would argue that it is at this juncture where need meets TVET, technical and vocational education and training, through BTVI. And BTVI’s mandate and our mission makes it very clear to provide applied education that transforms lives and communities, and enables individuals to be globally

competitive and economically independent.”

She added: “Eleuthera has an incredible opportunity here at its disposal, and BTVI is ready to partner. It is a vision that is recognised in terms of innovation, in terms of spirit, in terms of what we need to be doing on the ground here. We think it is that as a partnership that we will make that difference. BTVI and our partners, we believe that the expansion of the BTVI footprint is critical to addressing the technical skills gap throughout the country.”

Dr Davis argued that about 75 percent of schoolleaving students directly enter the workforce or a trade upon exitng high school. As a result, she said collaboration between BTVI and industry is pivotal to ensuring a skilled workforce.

She added: “The fact of the matter is that, at BTVI, we recognise that that fundamental to any nation’s economy are the skill sets of its people and the production which comes from them. However, our partnerships with the private sector through a PPP are critical.

“About 75 percent of our high school leavers don’t go to university. They’re going into the workforce or

they are going into a trade. That’s a fact. We’ve got to find a way to harness that to our advantage. Because the reality is we have an opportunity here in Eleuthera. There should be nobody in Eleuthera who is wanting a job. We have got to align that need now with the credibility and currency that we know that we can get by partnering with the industry.

“Industry tells us what we do in our training. We don’t do anything unless we involve industry. Industry tells us that what we are doing by way of the preparation of our students, who are coming from BTVI, is consistent with what they need. And so we find an opportunity to get them out into apprentice-type or attachment-type arrangements.”

Dr Davis also outlined programmes that students can take advantage of to earn BTVI credits, and again called for private firms to assist the Institute with its future ventures.

She said: “We find a way of getting our high school students involved is through what we call a ‘smart start’ apprentice opportunity. These are students who dropped out because of COVID because they were simply disengaged, have a

– solar, wind and hydro –both onsite and through innovative, new partnerships throughout New Providence.”

Royal Caribbean, in an effort to mitigate environmental fears, is also promising no dredging or overwater cabanas. “Royal Caribbean will conserve the ocean environment, including coral, and will not dredge the area in and around Paradise Island,” the cruise line added.

“In addition, the cruise line will not build overwater cabanas on the property, and it has no marine development plans for the northern shore where

second chance, an opportunity to get come back to BTVI and to earn a trade; to earn a way to earn a living.

“We have an opportunity for those students who are still in high school to do BTVI credits, so that when they finish high school they have a jump start. We are serious about what we’re doing at BTVI, and we are consistent with what our global context is saying to us.

“They’re talking about developing skills for

abundant coral is present. It also plans to minimise the impact on marine life through monitoring and adjusting the location of the limited structures, such as the floating pier, in place during construction on the southern shore of the island.

“The Beach Club will have a dedicated and best-in-class wastewater treatment plant that will process 100 percent of the wastewater generated onsite. More than 95 percent of the treated wastewater is intended for beneficial reuse, and the

individuals to learn, work and live. They’re talking about developing skills for inclusive and sustainable economies. We’re talking about developing skills for elusive and peaceful societies. But we need to do that with you; we cannot do that alone. There’s no way that we can do that alone. Governments cannot do it alone but, in partnership, we can do it together.”

AIR FARES BLAMED FOR 20% BRILAND VILLA RENTALS DROP

rising from around $750$800 to at least $1,800 via a 125 percent increase, he added: “It was slower this year than in previous years for high-end rentals and that reflects the higher air fares. Even though people pay top dollar to rent out these units, they are still sensitive to air fares.

“Pre-COVID, to get here on Delta or American Airlines was probably $800 per round trip, and this season it’s around $2,000 per person give or take. The folks that travel to Harbour Island to have the wherewithal, and find it really convenient to get to Eleuthera directly rather than fly to Nassau and connect on Pineapple Air like they used to. They’ll pay for that to fly here on a jet.

“But even though they are well-heeled travellers to Harbour Island, and they’re willing to pay $20,000 a week for villas, on the air fare they’re not going to pay. We were probably down 20 percent for villa rentals this year compared to last year. I don’t know where they went but

they didn’t come here,” Mr Malcolm continued. “The air fares make it uneconomic. There’s more value in villas on the beach than there is for air fare. People will forego renting those villas because of the air fare.

It’s cost prohibitive. We saw a 20 percent slowdown in rental activity at the higher end. That was affected by air fares and inflation. The two go hand-in-hand, but primarily air fares. “I flew from Harbour Island to Des Moines, Iowa, a few weeks ago and paid $2,100 for a round trip. There’s some craziness in airline pricing and it doesn’t help us.” Mr Malcolm voiced his concerns after a senior tourism official last week said The Bahamas has failed to convert its US proximity into affordability with airline ticket taxes now exceeding the actual cost of a flight.

Kerry Fountain, the Bahamas Out Island Promotion Board’s executive director, questioned “what’s on the drawing board” to reduce the high access/airlift costs into this nation as he revealed that ticket taxes for

his recent flight to Nassau from Fort Lauderdale were 13.4 percent higher than the actual ticket cost.

Taxes worth a combined $163.35 accounted for 53 percent of the total ticket price, and Mr Fountain told the Eleuthera Business Outlook conference: “I need to address this. I’ve heard it mentioned again yesterday on a sales call by some of the hotel partners, and that is the cost of getting to this island of Eleuthera. Some are paying $1,200 or whatever it is.

“The other day I was flying from Fort Lauderdale to Nassau. My ticket cost $144, but the taxes were $163.35. That’s more than the cost of the ticket. We always talk about, when we are writing a business plan for The Bahamas, about our proximity but what we have failed to do is translate or convert that proximity into affordability....

“The point of the matter is that because of the high cost of getting here the number one market for The Bahamas is Florida; Miami and Fort Lauderdale. You could

jump on a Carnival cruise from Miami, Fort Lauderdale for $400. That’s almost equal to the cost of an airline ticket. Florida is our home court. We’ve given up that advantage. What are we doing? What is on the drawing board to reduce the high cost of ticket taxes to The Bahamas.”

However, Benjamin Simmons, proprietor of The Other Side and Ocean View properties on Harbour Island and Eleuthera, told Tribune Business that he had received no complaints from guests about the cost of airline tickets into the destination. “The main complaint is the inconsistencies with some flights getting here and delays,” he said.

“I think the destination is one of the most elastic when it comes to pricing. I haven’t noticed any sensitivity to pricing. The biggest complaint is that flights are delayed and people have missed their connections or they have left their luggage behind.”

However, Mr Simmons said there will be “a breaking point” if air fares continue to increase to a point where it is cheaper and easier for visitors to reach rival destinations. And he agreed that current prices may make the

destination unaffordable for some members of groups such as weddings.

Carlton Russell, the former senior Atlantis executive who is now The Cove’s managing director, told last week’s Eleuthera Business Outlook that it was “very short-sighted” for The Bahamas to be at the mercy of high ticket taxes that raise costs to access the destination and potentially price some visitors out of the market.

“Sixty percent of that airline ticket is taxes,” he said.

“What would be the outcome if we reduced that tax by 50 percent? What would that do for our destination?”

Contrasting the impact from one dollar spent by a visitor to that taken in taxes, Mr Russell said: “The dollar that comes in circulates 11 times’ in the community before it goes back out.

“So does it make sense to get that dollar in taxes at the front end, which is one dollar, or that same dollar after it has circulated through the community 11 times? We need to look at tourism in a different state” of mind.

Dr Kenneth Romer, the Ministry of Tourism, Investments and Aviation’s deputy director-general, and acting

ROYAL CARIBBEAN: PI ‘100% RENEWABLE’ WITH ZERO WASTE

FROM PAGE B3

remaining byproduct will be composted for landscaping and vegetation.”

Noting that the western end of Paradise Island “has fallen into disrepair, with several former residential properties neglected or abandoned”, Royal Caribbean added: “The company will restore this area by adding native plants and vegetation, removing invasive, non-native species of plants and only constructing buildings on previously altered property or that contain significant invasive or non-native species of plants.

“In addition, Royal Caribbean plans to continuously study and protect wildlife during construction and eventual operation. When building and operating the beach club, a Bahamian company will conduct environmental monitoring and publicly report information through an environmental scorecard.

“As part of its commitment to an open and public process, Royal Caribbean will hold a supplemental public hearing in conjunction with The Bahamas’ Department of Environmental Planning and Protection. Details for the meeting are being finalised with the Government of The Bahamas and will be shared as soon as they are available, in line with notice

requirements. The cruise line will also share more about its environmental plans in the coming weeks.”

Royal Caribbean added that, with the Royal Beach Club having received the Government’s “conditional approval”, the information provided about its environmental pans will include answers to questions submitted by Atlantis and others during the initial public consultation in September 2021.

Mr Carey last week voiced concerns that Royal Caribbean’s Paradise Island project “cannot bear the environmental pressures of what is being proposed” and suggested the 17-acre site will struggle to cope with the daily average of 2,750 passengers it will host.

“We’re standing on a narrow strip of land that really cannot, it should not and it cannot bear the environmental pressures of what is being proposed. So we want to see how anybody is going to work environmental magic to make that possible and, more importantly, sustainable,” Mr Carey said. “And even if you propose a gold environmental standard, how are you going to make that work on this tiny little narrow strip of the last little piece of Crown land on Paradise Island?

Voicing concern over the volume of visitors that will frequent the site, he added:

director of aviation, told a panel discussion at the same conference that officials are “constantly advocating” for commercial airlines to reduce ticket prices and travel costs to The Bahamas.

However, he also pointed out that ticket prices are set by market forces of supply and demand, and The Bahamas remains a high-end destination that wealthy travellers are prepared to pay a premium to visit.

“Airlines are businesses, and businesses are always driven by profit. Businesses are driven by demand,” Dr Romer replied.

“The Bahamas is, first of all, an expensive destination. You cannot compare The Bahamas to Mexico and others. Those persons who come to The Bahamas generally have the means to pay for the tickets. Airlines view us as a high-end, luxury destination.

“We are constantly advocating for our airlines to reduce the cost of travel. You’re going to have a certain amount of seats that are going to be affordable, but the majority of our seats are going to attract higher rates because we are almost a luxury, high-end destination. Whether or not you buy a ticket somebody’s going to buy it because demand exists for the destination. They’re going to drive demand to drive their profits.”

“Their EIA says they’re building a facility that can take nearly 8,000 passengers. The deputy prime minister said that they’d negotiated down to 1,000. Last week, on one of the shows that they were on, they talked about 2,500 to 3,000.

“So they have the capacity to bring lots of people to the small space and, trust me, you go to any of the private islands they put as many people as they can on those islands and there’s no reason to suspect or to believe that if they build it for 8,000 that 8,000 will not come.”

And Vaughn Roberts, Atlantis’ senior vice-president of government affairs and special projects, said Royal Caribbean is “packing a lot of people” into its Beach Club, which the cruise line projects will generate $1bn in extra visitor spending, taxes and other expenditures during its first ten years.

“On any given day there’s never 3,000-4,000 persons on the Atlantis stretch and it’s a much larger beach. It’s a lot of people to pack into the space on that [Royal Caribbean] beach,” he added. “We need to see more details. They seemed to give some assurances they will provide more details. We continue to raise the concerns, and are going to stay very close to it and be very vigilant. It’s important to us, important to our future and important to the experience we deliver to our guests.”

Show Time

By CHRIS ILLING CCO @ ActivTrades Corp

POLITICIANS worldwide are fighting over carbon dioxide prices, domestic flights and kerosene taxes to slow down climate change. The goal is to limit the global rise in temperatures to two degrees. But most energy forecasts are of the opinion that we are losing this battle. With this in mind, it is no surprise that car manufacturers are trying to do their part to make the world a greener place. Battery powered and hybrid vehicles are experiencing a surge in demand all around the world. In 2019, only 2.6 percent of all cars sold globally were electric. In 2022, these vehicles accounted for around 13 percent of all autos sold. This increase in demand is good for business, and the leading car manufacturers are competing over which model has the longest range, best design and best price point.

The Auto Show in Shanghai, which began last Tuesday, is the most important event of its kind since before the COVID pandemic. E-vehicles are dominating this trade fair, and the once-leading manufacturers such as Volkswagen (VW), Ford, and General Motors (GM) are increasingly being left behind by Chinese competitors in this booming market. The sheer mass of Chinese vehicles is striking - 650 models from 60 Chinese brands, and almost all with electric drive. China’s politicians have strongly promoted electromobility in China, which has strengthened manufacturers over the past few years. A lot of these young, modern car companies have the advantage of extremely agile organisational structures and processes. They can produce faster and more affordably compared to traditional car companies. Influencers for local brands are flooding social media, creating a cool trend, and young Chinese are increasingly buying local products.

This development has already had an effect on Germany’s Volkswagen,

which sold 14 percent less vehicles in China in 2022 compared to 2021. The Japanese carmakers are trying to catch up, but have to accept they have missed the boat on the push for electrification. The new kids on the block, such as BYD or NIO, have already taken over from the established brands in regard to the number of cars sold in the first quarter of 2023.

Electric vehicles are forecast to be over 50 percent of global car sales by 2035, and around 73m by 2040. Experts predict that profitability for the car manufacturers will increase, while the cost for the consumer decreases.

Just as in the competition between the car manufacturers, we can see increasing competition between the countries that harvest the important raw materials to produce electric vehicle batteries. A large chunk of the cost of an electric vehicle is its battery, which can account for as much as 40 percent of the expense. For example, Chile has the largest lithium reserves in the world. President Gabriel Boric wants more control

over mineral resources, and plans to nationalise the lithium industry. This could have consequences for partnerships with Volkswagen, Mercedes and others. Chile is the world’s second largest producer of the metal after Australia, and the demand is increasing rapidly with the transition to a climatefriendly economy. Mining is currently in the hands of industry giants, and they have contracts with Tesla, LG Energy or Mercedes, for example. But, in the future, a state-owned company will have control over the extraction of the raw material using public-private partnerships (PPPs). Mexico nationalised its lithium deposits last year. The country is aiming for a lithium alliance with the governments of Argentina, Bolivia and Chile. Under the IRA (Inflation Reduction Act) in the US, which aims to promote domestic assembly of electric vehicles as well as the location of battery assembly and material production, companies will not be able to use the battery supply chain that has been built up in China to export to the US.

Tourism ‘doesn’t need any more’ air fare fees

the market, and the resort industry was eyeing ways to reduce access costs to the destination.

“There’s no question that the cost of airline tickets continues to escalate, and that may have an impact on some passengers’ ability to travel to a destination,”

Mr Sands said, adding that the Association and various tourism Promotion Boards “certainly support examining ways in which air tickets and air transport access costs can be reduced”.

However, he noted: “There are also some realities that we have to be prepared to address, and one of the issues that has surfaced is the value or amount of taxes that are included in the airline ticket prices. Some are saying they are very high, others are saying enough is enough.

“The reality is that taxes on tickets for people travelling to The Bahamas are not the highest in the region but maybe in the middle. There are a number of issues that contribute to that. Of the $150 that is maybe charged on a ticket, approximately $50-$60 are US-based levies for coming to The Bahamas from the US, and approximately $90$100 are Bahamas-based taxes.”

Suggesting that these are better defined as “user fees” than taxes, Mr Sands said the largest Bahamasbased levy is the user fee “that was introduced to contribute to the development costs of LPIA. Bahamians demanded a world-class facility, and our visitors require it.

“It was introduced when we were expanding LPIA, and at the time we were growing the rooms at Baha Mar and expanding the

passenger count by 400,000 a year. The point I’m making is not that LPIA was introduced for Baha Mar, but the trends in tourism numbers indicated that LPIA in its former state could not sustain growth in tourism in The Bahamas,” he added.

This made LPIA’s redevelopment imperative, and the only way to finance it the necessary infrastructure and capital improvements was to charge users a relatively modest fee built into their airline tickets so that lenders could be repaid. Mr Sands pointed out that another significant component of the ‘taxes’ built into airline tickets is the departure tax levied on visitors.

“While I agree that we don’t need any more taxes, and should find ways to reduce those costs, a lot of this is associated with strategic infrastructure and the expectations of

Bahamians and visitors,” he told Tribune Business. “A lot of worldwide security measures, some of these fees cover elements of those costs for the benefit of Bahamians and visitors transiting through.

“The whole debate has to be taken into context. Are airline tickets higher than we would like them to be? Absolutely yes. But a lot of airlines are yield-managing for higher demand destinations. The Bahamas is one of those high demand destinations. We need to continue to have open collaboration with the airlines to see if there are ways in which we can.... I want to say, put a ceiling on some of these costs.

“That’s for the future, but understand we have benefited from these infrastructure works and capital developments, and that we are proud of LPIA as a world-class airport.

There are so many elements one has to consider in looking at this issue. We should not pick on user fees without understanding the rationale and reason they were put there in the first place,” the BHTA chief continued.

“It is unfortunate The Bahamas is a high-priced destination where the costs are much higher than other places, and it is more costly to operate in the Family Islands, which manifests itself in the air fares to attract airlines to The Bahamas. The reality is we’re looking to do infrastructure and capital developments through multiple islands to grow tourism.

“The Government funds a significant part of the improvements, but some of it is going to come from user fees. Citizens depend on it, visitors require it, otherwise we’re dead in the water in terms of product offering and value in this destination.”

Mr Sands spoke after Kerry Fountain, the Bahamas Out Island Promotion Board’s executive director, last week questioned “what’s on the drawing board” to reduce the high access/airlift costs into this nation as he revealed that ticket taxes for his recent flight to Nassau from Fort Lauderdale were 13.4 percent higher than the actual ticket cost.

Taxes worth a combined $163.35 accounted for 53 percent of the total ticket price, and Mr Fountain told the Eleuthera Business Outlook conference: “I need to address this. I’ve heard it mentioned again yesterday on a sales call by some of the hotel partners, and that is the cost of getting to this island of Eleuthera. Some are paying $1,200 or whatever it is.

“The other day I was flying from Fort Lauderdale to Nassau. My ticket cost $144, but the taxes were $163.35. That’s more than the cost of the ticket. We always talk about, when we are writing a business plan for The Bahamas, about our proximity but what we have failed to do is translate or convert that proximity into affordability....

“The point of the matter is that because of the high cost of getting here the number one market for The Bahamas is Florida; Miami and Fort Lauderdale. You could jump on a Carnival cruise from Miami, Fort Lauderdale for $400. That’s almost equal to the cost of an airline ticket. Florida is our home court. We’ve given up that advantage. What are we doing? What is on the drawing board to reduce the high cost of ticket taxes to The Bahamas.”

director-general, on February 2, 2023, “inviting Western Air to show cause in writing within seven days as to why intended enforcement action relating to a flight operated by Western Air from the Lynden Pindling International Airport (LPIA) to the island of Bermuda on October 19, 2022, should not be proceeded with...

“On February 3, 2023, Sherreta Rolle, vice-president of operations and general counsel to Western Air, responded to the letter pointing out to the director-general that the threatened enforcement action was based on assertions made by him which were incorrect, and that the threatened enforcement would be unjust,” Justice Hanna-Adderley wrote.

Two months elapsed before, just two days prior to the start of the Easter holiday weekend, Mr Rolle on the afternoon of Tuesday, April 4, “received a penalty notice electronically from the defendant advising that it was satisfied that Western Air was responsible for the operation of flight WST 1700, which was operated ‘negligently and/or recklessly’ during the subject flight and that the defendant [Civil Aviation] was imposing a fine in the combined sum of $200,000”.

Mr Rolle was also warned that Civil Aviation planned to suspend the Air Transport and Flight Dispatcher certificates, respectively, for his three key personnel - in effect removing their licences to operate - for a period of 90 each. He added that he was informed by his attorney that Civil Aviation had “no authority” and “no power” to impose either the fine or certificate suspensions.

“Mr Rolle states that he is satisfied that it was within the director-general’s knowledge that the Easter weekend was the busiest period in the calendar year for Western Air in providing services throughout The Bahamas and, as usual, the [airline] had made arrangements for additional flights to meet anticipated increased demand from passengers wanting to travel to Bimini, Cat Island, Andros and other destinations during this Easter season,” Justice HannaAdderley wrote.

“That passengers had purchased tickets in large numbers, and to have to cancel flights because of

flight ‘reckless, negligent’

these unlawful decisions would have been disastrous for the business operations of Western Air. Hence the injunction application.

The ruling did not mention any of the passengers on the flight. However, the destination - Bermuda; the date - October 19, 2022; and flight number - 1700 - all match the details of the trip by the Prime Minister and his delegation. Moreover, Bermuda is not part of any Western Air regular route schedule, and aviation industry insiders yesterday confirmed it was indeed Mr Davis’ flight.

The Prime Minister’s press secretary declined to comment last night on the grounds that the matter was before the courts or “sub judice”. Besides Mr Christie, Mr Davis was accompanied by Fred Mitchell, minister of foreign affairs and the PLP chairman; JoBeth ColebyDavis, minister of transport and housing; Myles Laroda, minister of state in the Prime Minister’s Office; Leon Lundy, parliamentary secretary in the Prime Minister’s Office; and Senators Barry Griffin and Quinton Lightbourne.

Also present were Barbara Cartwright, the PLP’s general secretary, and other officials. Much of the controversy surrounding the Bermuda trip to-date has centred on whether the Government (Bahamian taxpayers) or the Progressive Liberal Party (PLP) covered the costs since it appeared to be more of a political visit rather than one related to government business.

However, aviation industry contacts, speaking on condition of anonymity, yesterday said the real focus should have been on whether the flight complied with international regulatory requirements.

Questions were flying around the Bahamian aviation industry just after the Prime Minister returned from Bermuda last year

over whether these standards had been met.

No one, though, was prepared to place their concerns on the record for fear of being caught up in a political controversy when contacted by Tribune Business. However, industry sources spoken to by this newspaper yesterday said the matter should not become caught up in party politics - even though it will likely reignite the controversy surrounding the Bermuda trip - because responsibility for the flight’s compliance rested with the airline.

One contact said the key questions, given that the flight had to cross a vast stretch of the Atlantic Ocean to reach Bermuda, were whether the plane was equipped with the necessary life rafts; if it possessed two high frequency (HF) radios and dual long-range navigation systems as demanded by the ‘Class Two’ air space it crossed; and if the pilots and dispatcher were fully trained to operate in that air space.

Tribune Business was told that planes undertaking flights such as the one that brought the Prime Minister to Bermuda need HF radios, rather than the shorter-range VHF variety, to remain in contact withand report their position to - the New York controllers who manage the Atlantic ocean space that was crossed. If planes drop out of radio contact, New York than has to undertake significant work to deviate all other aircraft in the vicinity to avoid a possible mid-air collision.

This newspaper was told that, for the return trip to New Providence, the Prime Minister’s flight had to “borrow a hand-held satellite phone from Jet Blue” to regularly report its position. And the flight’s status was changed from a Western Air flight to a “state flight” with the designation ‘VP’ - ‘Victor Papa’ - Oneotherwise, contacts said, the

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return may not have been allowed to take-off.

“If that had not been a government flight, the plane would have been sitting in Bermuda for a long time,” one source said. Another added: “The only way around it was to declare it a state flight, an official flight of The Bahamas,” a contact added. “They did that in order to get back. They had to change their call sign and become a state aircraft.”

Justice Hanna-Adderley’s verdict did not detail the basis of Civil Aviation’s findings and enforcement action. Harvey Tynes KC, representing Western Air, branded the penalties being levied against the airline as “excessive and unlawful” as he argued that the $200,000 vastly exceeded the sums provided for in the Civil Aviation Act. And he added that the licence suspensions were “illegal” because they could only last for a maximum of 21 days, not 90 days.

This was disputed by Ryan Sands, the Attorney General’s Office attorney

representing the Civil Aviation Authority. However, Mr Tynes argued that it was “a matter of tremendous urgency” that the injunction be granted given that two days before the long Easter weekend his clients were “slammed” with a $200,000 fine even though they “refute the allegations of wrongdoing or impropriety”.

Finding that there were serious issued to be tried, Justice Hanna-Adderley found for Western Air and granted the injunction blocking Civil Aviation’s enforcement of the fines and licence suspensions.

“The claimants, in my view, have demonstrated that they will suffer real and irreparable damage should the enforcement of the decisions not be restrained until the determination of the intended Judicial Review proceedings,” she ruled.

“A $200,000 penalty to any business would cause economic harm. There can be no doubt that the three employees (two pilots,

captains no less, one in charge of training pilots and a person responsible for the Flight Control Centre of the airline) are key employees in the operation of the airline.

“Just as their services were keenly required during a busy holiday weekend, they would be required in the day-to-day operation of the airline and, if derostered, would probably result in cancelled flights as would have occurred over the holiday weekend, loss of revenue, a reduction in efficiency and, most of all, the loss of goodwill by the Bahamian public and reputational damage to the said employees,” Justice HannaAdderley wrote.

“While some of these damages are calculable, I am of the view that in the circumstances of this case, due to the overall and various damages and inconvenience that would be suffered by the claimants that damages would not be an adequate remedy.”

Hotel union: ‘One item’ away on industrial deal

the union’s other industrial agreement negotiations with the likes of Restaurants Bahamas (KFC), Best Western, Graycliff and Harbourside also “wrapping up” relatively quickly.

“We’re still chugging at it,” Mr Woods told this newspaper of discussions with the Bahamas Hotel and Restaurant Employers Association. “We’re down to one item, and are trying to get through that. We’re almost there. The thing about it is I really do believe we will get there shortly.

“All [agreement negotiations] are pretty much at the same stage. There’s a domino effect and cascading also. I believe that when we get one completed the others will follow, too. We believe that we should be able to wrap it up in short order. It will be what I call ‘a red letter day’ and the members will be happy. They’re constantly asking how long, how soon. We have to wrap up this process, bring it to a close and move on.”

The union and its members have been without an industrial agreement since the last one expired

in January 2013, more than one decade ago. Atlantis and other resorts in the Association have operated as if the previous agreement’s terms and conditions are still in effect and, as a result, BHCAWU union members have not enjoyed any wage or benefit improvements for the past ten years other than those provided by their employers.

Mr Woods declined to detail what the outstanding issue is, although he indicated it was financialrelated, or what the union is seeking for its members or what they are likely

to receive. However, he added: “It gives them additional job security and tenure, and more benefits across the board, and the emoluments and wages.

“It all represents improvement, but they will have to wait until that day. They’ll be extremely happy. What I can say to them is that, while it might have been a long time coming, they will be relatively happy with what we’ve been able to do by the masses and.... they’ll be able to look at where they were and where they will be. They will be that much further ahead in terms of position.

“We always talk about the hotel industry being the number one industry. We believe this agreement puts us on the pace to be paid commensurate with being the number one industry. We kind of try to fit closely with what the Government has done. We salute them for the bold steps they’ve taken up to this point. People talk about the minimum wage being what it is, but it has been increased significantly, particularly for people in the service industry, so we are able to build on what they’ve done and take it to another level.”

Mr Woods said the hotel union’s outstanding industrial agreements have now all reached the stage of addressing financial terms. He added that there were “one or two anomalies”, which he did not specify, relating to Restaurant Bahamas but said that once these were addressed “everything will flow from it”.

The BHCAWU president said he remained concerned about the loss of potential tourism business for The Bahamas due to continuing room inventory shortages resulting from resort closures such as those of the British Colonial and Melia Nassau Beach. He added that while there had been “some movement” at the former, and suggestions it will re-open in time for the winter 2023-2024 season, no official confirmations had come from either property.

“We know there’s a scramble for rooms,” Mr Woods said. “I think it was the third week of March that I was trying to get a room for somebody and there were no rooms on the island. It was completely sold out. I only wanted it for one night. That tells you how strong the industry is

doing right now. It could also be the reduction in available rooms, but where we represent people we know the bookings are strong.

“If we don’t have rooms, clients will shift to other destinations, so that’s why it’s important for us to get rooms back into circulation. If they are booking for agencies or with hotels direct, and cannot find rooms, they will look for alternative destinations and that is something we don’t want. They can find restaurants, can find something to do, but if they have no place to stay they won’t come and we don’t want to miss out on any opportunities at all.”

Mr Woods said hotel union members, and employees generally, are continuing to benefit from the industry’s post-COVID recovery. “I said to one member that I wanted to invite them to meeting, and they couldn’t come because they are working six-day weeks,” he told this newspaper. “They’re reaping the financial benefits of what is happening now. It’s pretty much across the board.

“The industry has been very strong. The reason I can say that is because August, September and October last year, and the first part of November and the first part of December, have traditionally been relatively slow but last year was the complete opposite. They’ve been benefiting from it for quite a while.

“The bookings seem to be very strong based on all the accounts we’ve been getting. We’re hoping the trend continues all the way through the year. You can never make up for lost time, but kind of embrace the moment you have.”

SEPARATIONS HIT UTILITY EXPERTISE

By YOURI KEMP Tribune Business Reporter

BAHAMAS Power & Light (BPL) is facing “significant” workforce challenges after losing hundreds of years in combined expertise through a previous voluntary separation exercise, a Cabinet minister said yesterday.

Alfred Sears KC, minister of works and utilities, said it was critical that BPL attract and retain the “best of the best” to help address its long-standing financial and other woes as well as

assist with the transition to renewable energies.

BPL accepted 314 applications for its voluntary separation package (VSEP) in June 2018 under the former Minnis administration. It paid out a collective $56m tom departing workers, trimming the then-1,038 workforce by just over 30 percent or close to one-third. However, Pedro Rolle, BPL’s chairman, backed Mr Sears by agreeing this had stripped the utility of experienced staff and critical skills.

Mr Rolle said: “When this Board of Directors was appointed, we sought to identify along with

management our most critical human resource gaps, and to determine just how to address them not just in the short-term, but to create a plan for greater organisational security.

“While in the short-term we are able to draw on the resources and the talents of some retirees, and some persons who are on their way out, that is not a sustainable way to run an organisation.” As a result of these challenges, BPL is putting together an initiative that will lead to “long-term sustainability” with regard to its workforce.

BAHAMAS POWER & LIGHT (BPL) HEADQUARTERS

NOTICE is hereby given that NEVILLE LLOYD MCLISH of #55 Bernard Road, New Providence, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 17th day of April, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that DUROFARO CAJUSTE, of Palmetto Point, Eleuthera, Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 17th day of April 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that VICTOR PIERRE, of Guess Corner, New Providence, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 24th day of April 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas registered in the Register of Companies under the Registration Number 208505 B. (In Voluntary Liquidation)

Notice is hereby given that the liquidation and the winding up of the Company is complete and the Company has been struck off the Register of Companies maintained by the Registrar General on the 15th day of March, 2023.

Dated this 15th day of March, A.D. 2023

Marcelo Ruston LIQUIDATOR