THE world’s largest private pilot body has warned the Prime Minister “there is no question The Bahamas will lose its competitive advantage” unless it tackles “egregious fees” and other obstacles to general aviation.
Mark Baker, president and chief executive of the Aircraft Owners and Pilots Association (AOPA), which represents between 300,000 and 400,00 plane owners and pilots, told Philip Davis KC in a July 17, 2024, letter that the combination of increased Customs and airport fees, together with the prospect of a more complex entry process, threatens to undermine this key tourism industry segment.
AOPA, whose 2022 intervention helped to halt the imposition of Customs’
• ‘No question Bahamas will lose competitive advantage’
• Mix of higher Customs, airport charges ‘perfect storm’
doesn’t cost The Bahamas any more than a 172 in services. Especially when four seats are empty. I’ll go place where we are welcomed. Signature at Key West just became reasonable.”
IT meltdown won’t halt digital payments drive
• Pilots pushed ‘over the edge’; Key West looks better • Businessman: Shows ‘folly of
Click2Clear border control system on general aviation, issued its warning as the backlash against the newly-introduced higher Customs fees and Bimini airport fees gained escalating momentum on private pilot social media forums with even Bahamas flying ambassadors voicing reservations.
The general consensus among pilots posting in the Bahamas Flying Forum page on Facebook is that the fee hikes have made Key West a far more attractive destination, while
challenging why from July 1, 2024, they now have to pay more in “inbound” and “outbound” fees to Customs than a Boeing commercial jet airliner.
The mix of higher Customs and new airport fees has been branded “the perfect storm”.
Charlie Beliveau wrote:
“We went to Staniel Cay last two years. Probably pumped $5,000 each year into the local economy. The new fees are a small part of that, but I don’t think I should be punished for visiting. An A36
In one thread, a pilot brands one aircraft model having “to pay double” in Customs fees what another has to, even with two extra empty seats, as “what a BS”. They added: “I know $300 is not a crazy amount but a weekend trip makes less sense. I’m sure that there are still other fees and roadblocks. Looks like The Bahamas want to turn into Haiti. They are on good way.”
After being informed that departure taxes and other fees will also be levied, the same pilot, Marcin Drygala, replies: “So now my trip just for fees is $450 before parking
IT meltdown ‘wake up call’ for local business
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
BAHAMIAN businesses and information technology (IT) providers yesterday branded Friday’s global meltdown “a wake-up call” in exposing this nation’s vulnerability to events over which it has no control.
Debra Symonette, Super Value’s president, told Tribune Business that the impact from CrowdStrike’s faulty cyber security upgrade knocking all its clients’ Microsoft Windows’ systems offline could have been much worse for the supermarket chain, other
businesses and the wider Bahamian economy. The only difficulties encountered were in processing card transactions for the customers of one bank she declined to name.
“Fortunately, by the time we got around to it, it was only that particular bank,” Ms Symonette said. “All the other banks seemed to be straightened out. I understand that it was all around. Our point-of-sale (POS) was up but the credit and debit card machine was the thing we had problems with. It was just one bank.
‘Unfriendly’ society found illegally selling insurance
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
INSURANCE regulators found an entity registered under the Friendly Societies Act was breaching multiple laws by selling insurance products to persons who were non-members.
The Insurance Commission of The Bahamas (ICB), in its just-released 2023 annual report, revealed that the unnamed entity was operating in breach of both the Insurance Act and Friendly Societies Act and committing what it branded “a significant breach of regulatory protocols”.
“An extensive investigation uncovered that an entity registered under the Friendly Societies Act had
been illicitly disseminating insurance products to individuals who were not members of said entity, contravening the provisions stipulated in both the Insurance Act and the Friendly Societies Act,” the regulator wrote.
“Further examination revealed that the entity was operating without the requisite registration and licensing from the Commission, signalling a significant breach of regulatory protocols. In response to these findings, a public warning was promptly issued, cautioning individuals against conducting any form of insurance transaction with this entity.”
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Bahamas’ digital payments drive will not be stalled by Friday’s global IT outage, a prominent banker argued yesterday, as the benefits “far outstrip” the impacts from this event.
Gowon Bowe, the Clearing Banks Association’s chairman, estimated to Tribune Business that “60 percent of commerce” in The Bahamas was not impacted by CrowdStrike, the cyber security firm, implementing a faulty upgrade that rendered clients’ Microsoft Windows systems largely inoperable.
Arguing that the incident must be placed in context, he asserted that the advantages created by digital payment mechanismsgreater speed and efficiency in closing transactions,
improved security and reduced loss and fraud - “far outweigh” the temporary “inconvenience” caused by the CrowdStrike fiasco that is thought to have knocked eight million computers offline globally. However, Bahamian businessman Ethric Bowe yesterday argued that the global IT meltdown - and the disruption caused to
NEW $10M PI RESTAURANT’S CONSTRUCTION 75% COMPLETE
A CHICAGO-based
restaurant’s $10m Paradise Island expansion is targeting a September 2024 completion with construction work now about 75 percent complete.
Carnivale Bahamas, in a statement detailing progress on its first-ever sister location, said local construction company, CGT Contractor & Developers, is employing around 100 Bahamians on the project.
Jerard Nixon, the restaurant chain’s project manager, said: “It is clear that this will be a unique experience on Paradise Island, maybe one-of-akind in the whole country. The plans called for extensive indoor and outdoor dining areas that flow into each other seamlessly, and are both designed to showcase live local music. There is going to be a centre of excitement, life and energy like nothing else in Nassau Harbour.”
The Carnivale restaurant is the focal point for a larger expansion and redevelopment of the Hurricane Hole Super Yacht Marina, which involves the addition of a commercial complex and high-end residential neighbourhood.
“This is such an historic and recognised part of Paradise Island,” Mr Nixon added. “The redevelopment has really brought the area back to life and I think Carnivale Bahamas will be the crowning jewel of this achievement.”
Carnivale’s owner’s representative, Arnold Villar,
said construction work is about 75 percent complete, with the final phase to focus on signature details that will make the restaurant experience unique.
“We have been aiming for a September completion date, and CGT is working hard towards realising that aim,” he said. “We just need a final push to get the finishing touches in place now.”
Praising Mr Nixon’s work as project manager, Mr Villar added: “He is a great example of the hard work and no-nonsense attitude that we have come to appreciate in the Bahamians that are working on the site. We are very happy to be working with Jerard and his team.
Bill Marovitz, co-owner of Carnivale, said: “There will be nothing like this experience anywhere in The Bahamas. We will showcase local culture and cuisine, but with a vibrant ambiance punctuated by hottest local music, including live concerts. Energy, excitement, fun – these will
be the hallmarks of Carnivale Bahamas.”
“We are incorporating elements that are native and beloved by Bahamians,” said co-owner Jerry Cataldo. He said patrons can expect a ‘wow factor’ with every visit, plus food that will span cultures and include everything from twists on Latin and Bahamian flavours to fresh Bahamian seafood.
Operating under the mottos: “live a colorful life” and “love always wins”, Carnivale’s Chicago restaurant, which opened in 2005, has become renowned over the past 18 years for its signature colour, life and fun, as well as top-shelf food and service. The same approach will shape the culture and atmosphere of Carnivale Bahamas.
Once fully operational, Carnivale Bahamas will have a combination of indoor and outdoor seating for more than 350 patrons, as well as a cocktail bar. The restaurant anticipates hiring as many as 120 Bahamian employees.
PLANS FOR FREEPORT HARBOUR TO BE REVEALED ‘REALLY SOON’
By FAY SIMMONS
PLANS for Freeport Harbour are to be announced “really soon”, according to Acting Prime Minister Chester Cooper.
Speaking at Royal Caribbean International’s Utopia of the Seas inaugural stop to Nassau yesterday, Mr Cooper said plans for the redevelopment of Freeport’s Harbour are forthcoming and once completed he “anticipates” a deal will be struck with cruise lines, including RCI and MSC to incorporate the stop into their routes.
He said: “There are significant developments underway as it relates to Grand Bahama. There needs to be some new investments, we expect there to be some announcements really soon for the
redevelopment of the Freeport Harbour, which will facilitate ships this size to be able to arrive in Grand Bahama safely.
“So, we anticipate a deal between Royal Caribbean and an ITM and MSC to ensure that the facilities there become capable to welcome this ship and then we will have three stops for the Utopia of the Seas, and I look forward to be able to welcome them for that voyage as well.”
The Utopia of the Seas, RCI’s latest addition to its fleet, currently has an allBahamas itinerary, with three- or four-day sailings featuring stops to Nassau and Coco Cay. Phil Simon, president of the Royal Beach Club, said adding a stop to Freeport is “wishful thinking” but RCI will explore “whatever works best”.
He said: “I heard the acting Prime Minister mentioned that possibility, but
COOPER: TALK OVER $35M WATER PARK ‘PREMATURE’
By FAY SIMMONS
DISCUSSIONS around the Nassau Cruise Port’s plans to develop a $35m water park are “premature”, according to Acting Prime Minister Chester Cooper.
Speaking to reporters, Mr Cooper - standing in as prime minister with Philip Davis out of the country - said the Nassau Cruise Port has not yet applied to construct a water park and the government has made no “determination” on whether it will be permitted so conversations around how the development would impact the flow of tourist into downtown Nassau are “premature”.
He said: “Let me say that discussion as it relates to a water park here at Nasau Cruise Park is premature. The government has not made a determination. In fact, there has been no application as at this point before the NEC and therefore all conversations as it relates thereto is rather premature at this stage.”
In Parliament last week, Glenys Hanna-Martin, speaking in her capacity
as Englerston’s MP, indicated her concerns that the new amenity will further distract cruise passengers from venturing beyond Prince George Wharf when in Nassau and thus deprive Bahamian retailers, restaurants, tour operators and straw vendors of muchneeded business.
In an address that may not reflect Cabinet thinking or government policy, Mrs Hanna-Martin told the House of Assembly that tourists visited a nation to enjoy its culture and unique, authentic experiences rather than a port or dock.
“The cruise port is a dock. It’s a docking facility. The port is Nassau. The port is Nassau,” she urged. “I wish to say no more. The port is Nassau. In Nassau we have our straw vendors, our taxi drivers, our entrepreneurs. We have this huge rich cultural dynamic, this expression of who we are in the port of Nassau.
“I heard some talk about some water theme park. Please, please, give it a rest. Give it a rest. Let our people come through your dock. Make your dock nice; I have no problem with that. Come into Nassau, come into Nassau. I hope they heard me on that.”
obviously that’s, that’s obviously wishful thinking. The company will explore, you know, whatever works best. But for now, it’s sailing to Coco Cay and Nassau.”
Mr Simon said work on RCI’s Paradise Island Beach Club is “progressing” with about 90 percent of the structures removed from the site in preparation for construction.
He said: “The Royal Beach Club on Paradise Island is progressing through the site preparation and the demolition phase. We are probably about 90 percent complete with the removal of all the structures that have been there. We’ve been working in close collaboration with the DPP as well as our Environmental Consultants, as well as
the construction company for the removal of those structures.
“Quite a few underground equipment and tanks, etc. that we’ve been working through. The next phase will obviously be the relocation of the protected species. And so that’s a very delicate phase and so we’re taking our time with that one.”
He confirmed the crown land has been appraised in preparation for the IPO offering which is expected to commence in the third quarter.
He said: “There is a valuation on the books we are working through to get to that raise process. We would have executed the heads of agreement in April of this year, and there are still some i’s that we are dotting and t’s that we’re crossing relative to getting to the ideal process. We’ve identified the company and the fund manager that will
do that raise for us and so again, q3 of this year, is the estimated time timeline for that.”
Mr Simon said RCI has appointed a harbourmaster and a director of environmental sustainability as they compile the management team for the project, which is still slated to open during the third quarter of 2025.
He said: “We’ve hired our harbourmaster, Captain Cameron Gibson. We have also hired a director of environmental sustainability. Slowly but surely. And it’s not just a Royal Beach Club team, it’s really building out a team for The Bahamas.
“Third quarter of 2025, that’s what we’re pushing for. Obviously, if we a get ahead of schedule, that would be a win- win for all concerned.”
Airport, banks and stores are hit by global internet outage
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
A GLOBAL technology shortage affected services at Lynden Pindling International Airport on Friday.
The global outage created a massive disruption as flights were grounded and banks were knocked offline for hours.
Nassau Airport Development (NAD) confirmed the issues affected their operations with several flights being delayed and some vendors experiencing challenges processing credit card transactions.
“Due to global internet issues, we are currently experiencing some disruptions that are impacting certain operations at Lynden Pindling International Airport (LPIA).
“At present, passengers are being processed in the check-in areas at all terminals (US Departures and International/Domestic Departures). Bahamas Customs and Immigration
are also able to process arriving passengers. US Customs and Border Protection (USCBP) officers are currently operating on a backup system to process US-bound travellers,” said NAD’s statement.
“There have also been reports of flight delays by some airlines.
“Commercial operations are also being impacted by the global issues with some vendors having challenges processing credit card transactions.”
The issues continued throughout the day with a 5pm update revealing that flights were delayed at LPIA by up to five hours.
NAD encouraged passengers to check for updates with their airlines and noted that vendors were still experiencing difficulties with credit card payments.
“Operations at Lynden Pindling International Airport (LPIA) continue to be impacted by the global internet outage, said NAD’s update.
“Currently, airline operators are experiencing significant delays for arriving and departing flights particularly those operating from the US Departures terminal. Some airlines are estimating delays of 2-5 hours for both inbound and outbound flights.
“Passengers are being processed through checkpoints in all terminals. US Customs and Border Protection (USCBP) have returned to their main operating system and, as of this update, continue to process passengers.
“Retail and food and beverage operators are reporting challenges with payment processing and ATMs in terminal are working intermittently.
“We ask the traveling public for continued patience as LPIA stakeholders work to mitigate the fallout from this global issue.”
Cybersecurity firm CrowdStrike maintained the outage was not a security incident or cyberattack but they encountered a
problem when it deployed a faulty update to computers running Microsoft Windows.
Local businesses including supermarkets also reported that credit card machines were not operational on Friday morning.
RBC in a statement on social media announced its services were been affected by the outage and they were “actively investigating and solutions are being deployed”.
“Clients may have difficulty accessing their account information and may experience delays in their transactions. Our teams are working diligently to restore access as soon as possible. Thank you for your patience and we apologise for the inconvenience”, said RBC. John Rolle, the governor of the Central Bank of The Bahamas posted to social media to say that the “international banking disruption is also having its impact on The Bahamas”.
He said: “Some card payment services were offline and may still be. The Central Bank is monitoring the impact on local commercial banks.”
CHESTER COOPER
NASSAU CRUISE PORT
LYNDEN PINDLING INTERNATIONAL AIRPORT (LPIA)
Top pilot body warns PM on ‘egregious’ fee hikes
into Haiti. They are on good way.”
After being informed that departure taxes and other fees will also be levied, the same pilot, Marcin Drygala, replies: “So now my trip just for fees is $450 before parking and fuel. They should realise that we pilots will just give it up for now. I think that pushed the short flying over the edge. I’m sorry for guys that owned properties in there and fly for weekend couple of times a month. That’s gonna hurt.”
Pat O’Brien replied:
“Over $200 in Customs fees only for a weekend visit for two people in a four-place plane will certainly impact the number of visits. To bad, because the people of The Bahamas need more, not fewer, visitors.”
And Greg Piehl added: “I certainly hope that AOPA and others will help reduce or rescind these new fees. As a new Flying Ambassador, it’s gonna be tough to bring visitors for long weekends.
I’m doing my part by promoting, but we need help from The Bahamas’ Ministry of Tourism, too.”
Other pilots were more blunt. “Now.... boycotting The Bahamas,” Mark LaFlemme wrote. Another asserted: “We did about ten Dorian help flights. No more Bahamas flights. For now, ramp fees at Key West begin to look reasonable.” Some even sought to contact the Prime Minister personally.
“I fly a Grumman Tiger four-seat aircraft. Last year I flew to Georgetown, Exuma, for a week-long vacation at Sandy Bum. My new wife and I had planned a honeymoon trip to The Bahamas in October 2024. However, the imposition of the new
$150 arrival and departure fees is excessive,” Robert Reed wrote in a letter to Mr Davis.
“I can spend that $150 as a Bahamian tourist or I can spend it in Florida. I will not be spending it on fees. I request you rescind the excessive fees if you want American general aviation tourists supporting the local economy.”
AOPA’s top executive summed up pilot sentiments in his letter to the Prime Minister. While acknowledging that the imposition of some new fees will be necessary to finance planned upgrades to Family Island airports, Mr Baker argued that those levied on private plane owners and pilots should be “twice as much” as those faced by commercial airlines who will be the main beneficiaries of any improvements.
“I write today to urge you to intervene and rescind the imposition of new and egregious fees being imposed by the Bahamian government on private pilots flying to and from The Bahamas,” he wrote to Mr Davis. “We believe recent actions by Bahamian authorities with respect to these fees will have a negative impact on a sector of the tourism industry that has contributed heavily to the economy of The Bahamas.
“We remain hopeful that the appreciation for the value of general aviation tourism is not in question. General aviation tourism doesn’t need massive airport improvements similar to those that the airlines request or require. While we understand some fees are necessary, we also believe private pilots shouldn’t have fees imposed on them that are twice as much as those
imposed on commercial aircraft.”
Asserting that tourists arriving by private plane spend “more than double those arriving by private boats and cruise ships”, Mr Baker also voiced concern that “Customs’ Click2Clear programme that was put on hold a few years ago remains confusing and cumbersome, and will needlessly complicate the process for travelling to your country if implemented in its current form”.
He told Mr Davis: “With these new aviation fees, along with a complicated entry and departure Customs process and the impending privatisation of airports, there is no question that The Bahamas will lose its competitive advantage as a key destination for private pilots flying to the Caribbean.....
“The Aircraft Owners and Pilots Association (AOPA), representing hundreds of thousands of private pilots, has for many years promoted The Bahamas as a destination and has worked closely and effectively with your tourism department led by Greg Rolle. AOPA also stepped up recently and supported travel to The Bahamas when the US government issued a travel advisory.
“I look forward to working with you to resolve these matters, and to help ensure our relationship with The Bahamas and mutual support for general aviation remains strong and robust.” The private pilot backlash comes amid complaints that the sector was blindsided, and never consulted over, the extent and timing of the Customs fee increases which took effect when the new fiscal year began on July 1.
The Customs Management (Amendment) Regulations 2024 changed the aircraft inbound and outbound fee structure such that it appears a private plane with more than four seats now pays three times’ what a regularly scheduled commercial jet does.
Under the new fee structure, commercial jets have to pay a $50 “inbound” and $50 “outbound” fee for a total of $100. However, a private plane with four seats or less “including all seats in the cabin” is now faced with paying $75 each way for a total of $150.
That is slightly more than the $100 fee for a commercial jet, but private aircraft with more than four seats “including all seats in the cabin” now face having to pay $150 “inbound” and “outbound” fees to Customs for a total $300. So-called “recreational” flights will only pay $150 “inbound”, but cargo flights will see a $150 fee levied on both “inbound” and “outbound” trips involving The Bahamas.
For private planes and private aviation, the fee increases represent a threefold and six-fold increase, respectively, on the previous Customs fee structure which was $50 “inbound” and zero “outbound”. Meanwhile, the Customs fee increases have coincided with the new and higher charges levied by Bimini’s new private airport operator, which also took effect on July 1.
These have imposed a range of landing and parking fees on private aviation operators, as well as commercial airlines, along with new passenger facility and processing fees. These are being viewed as setting a precedent, and a foretaste of further fees to come at other Family Island airports when the Government outsources their redevelopment to other private operators and investors.
Bimini Airport Development Partners (BAPF), in an updated May 3, 2024, notice to commercial, charter and private aviation customers, served warning of its intent to impose a passenger facility fee on travellers from July 1, 2024, this year. These fees were set at $20 for domestic travellers, and doubled to $40 for international passengers.
Meanwhile, the passenger processing fee was pegged at $5 for domestic, and $10 for international, travellers with both categories also having to pay a $1 “passenger levy”. In total, these additional fees come to $26 for domestic passengers and $51 for their international counterparts, and are on top of the $29 per head departure tax.
The BADP fee schedule then reveals that the passenger facility fee is being increased to $25 for domestic travellers, and $45 for international passengers, with effect from January 1, 2025. And the passenger processing fee will rise to $6 for domestic, and $12 for international, travellers with effect from that same date.
Thus persons leaving Bimini to travel outside The Bahamas will have to pay an extra $58.
Kerry Fountain, the Bahama Out Island Promotions Board executive director, yesterday expressed hope that AOPA’s intervention may cause a rethink on the scale of the fee increases facing private aviation. “I just hope it’s not too late to pull on to the side of the road, recalibrate and get it right,” he told Tribune Business
Mr Fountain previously told Tribune Business that private planes brought 323,000 air arrivals, or one out of every six higherspending stopover visitors, to this nation in 2023. Some 95,000 of that number came from Florida alone and, giving an insight into what is at stake, he added that the total was more than combined visitor numbers from Canada, Europe and Latin America.
Private aviation visitors also tend to visit the Family Islands less frequented by commercial jets and their passengers, thus helping to spread tourism’s impact across The Bahamas through spending on resorts, transportation, restaurants, tour operators and other sector players.
The Customs fee increases associated with aircraft declarations tie-in with the Government’s Budget position that certain fees were to be increased to cover the costs associated with providing public services. They also align with the Davis administration’s policy, unveiled in the prior 2023-2024 Budget, of seeking to increase fees on foreign visitors to The Bahamas while minimising those on Bahamians.
The Government likely perceives the general aviation industry as having deep pockets, viewing private plane ownership and use as a sign of wealth, and able to easily absorb the fee increases laid out in the Customs Management (Amendment) Regulations 2024. These also include a $2,500 fee that will be levied if an aircraft declaration is submitted less than one hour before the plane arrives in The Bahamas.
Bimini’s private airport consortium has also defended its fees schedule,
arguing that both private and commercial aviation as as well as their passengers have been under-charged for its use and services for many years, which is why the facility has deteriorated. The new fees are thus required to finance the airport’s $80 redevelopment.
But the concern, as highlighted by the postings in the pilot social media forums, is that general aviation is a “fickle” sector where principle matters more than cost. While being able to afford the new fees is not an issue, if pilots and their clients believe they are being exploited or taken advantage of they will seek out new destinations because, as plane owners, they simply can. There is also the feeling that the Government is focusing solely on reviving Family Island airports, and is not looking at the bigger picture beyond the airport fence and the spending impact private pilots, plane owners and their guests have in the communities they visit.
Rick Gardner, a Bahamas Flying Ambassador and director of CST Flight Services, in an e-mail to other pilots wrote: “As I am sure that you are all aware, there are a number of issues facing general aviation tourism to The Bahamas that have presented themselves over the last several months.
“These issues include the privatisation of airports and their new fee structures, as well as the introduction of increased fees by Bahamas Customs. Many of us have heard stories of pilots being caught by surprise by the new fees and the negative perception that this is causing. Also, Click2Clear is raising its ugly head again which would just make for the ‘perfect storm’ to drive away general aviation pilots.
“Unfortunately, those with the most to lose are those hard-working Bahamian families that depend on tourism. As we well know, general aviation tourism is an important market for The Bahamas and, given our flexibility, we can take tourism dollars to places in the archipelago that airline passengers can seldom get to,” he added.
“However, with increased fees and complexity, it will make it progressively harder as Bahamas Flying Ambassadors to look our fellow pilots in the eye and convince them to come..... I fear that all of us who have put our credibility on the line and gone out of our way to promote The Bahamas to pilots will start to catch some blowback.”
OFF TO A ROUGH START
By CHRIS ILLING
The final trading day of last week started with a huge information (IT) problem that began in Australia and spread worldwide. The disruption affected Windows PCs in several industries, and appears related to the security software supplied by CrowdStrike. The company’s share price fell by around 12 percent as a result.
The global IT outages were also felt in the financial markets. Oil and energy traders were just as affected as stock, currency and bond traders from London to Frankfurt, and Munich to Singapore.
After the first turmoil of the day, Netflix started off the next quarterly earnings report and was able to increase the number of paying clients. Revenue
rose by around 17 percent year-on-year to $9.6bn in the past quarter, Netflix announced after the close of the US stock market. The bottom line is that profits rose from $1.49bn to just under $2.15bn. Only in the revenue forecast for the current quarter does Netflix slightly miss analyst expectations. At the same time, the streaming leader is predicting that the growth in the number of customers would be lower than in the same quarter last year, as the action against the free riders had been strongly reflected at that time. This bit of bad news was enough to drive the share price down by
around 2 percent to $632 per share. Netflix now has around 277.7m customer households worldwide. Since last year, the service has been taking action against password sharing. This is also driving the growth of user numbers. This is because many previous freeloaders got their own subscription instead of turning their backs on Netflix.
Netflix continues to grow unchecked and wants to snatch more viewers away from classic television. In the past quarter, the video streaming market leader gained a good eight million customer households. There were also significant
increases in revenue and profit, and the company will have more money to invest in new films and series. Netflix faces the unique challenge of designing a program for more than 600m people who use the service for an average of
IT meltdown won’t halt digital payments drive
digital and card payments for much of the day showed that “cash is still king”. He wrote in a social media post seen by Tribune Business:
“The current global situation is but another reason to avoid the folly of a cashless society.
“We should be creating more ways to facilitate transactions; not less. Money is property and people need secure, easy, reliable, inexpensive and secure access to their money. You pay VAT when you pay for items and then you pay VAT again when the bank charges you to process the charge. All of this is part of the cost of using digital currency. Digitising the money should make it less expensive, not more.”
Speaking subsequently to this newspaper, Ethric Bowe asserted that Friday’s events should at the very least slow The Bahamas’ digital payments transition.
“We will probably pretend we didn’t see it, didn’t notice it and go full steam ahead,” of the CrowdStrike meltdown. “That’s what we do. We see the cliffs and press the gas.
“The thing to do would be to make as many options available as possible. When you look at it, cashless is very expensive. You have to pay between 3.75 percent up to a 5 percent fee every time something gets processed. In addition to that, you pay VAT on the transaction and additional fees as well. You don’t get that with cash. I pay my friends in cash, people I don’t know I pay with cards.
“In terms of democracy, we should give people more choices. If you want to use cash, use cash. If you want to use digital, use digital. I use digital a lot when it
works, but in our situation it’s too unreliable, meaning it doesn’t work all the time,” Ethric Bowe added. “The magic thing we have in The Bahamas is called system failure. You could have power, you could have Internet; it just doesn’t work. That’s not irregular. That could happen in any given week.”
Confirming that the inability to process debit and credit card transactions was Friday’s biggest impact, Gowon Bowe told this newspaper this was due to CrowdStrike’s impact on the processing firms rather than Bahamian commercial banks. He added that the Association’s members were impacted to “varying degrees”, but the ability to process customer card transactions for all was restored by the day’s end.
Speaking to concerns that Friday’s events will strengthen arguments against moving towards a so-called ‘cashless society’, the Fidelity Bank (Bahamas) chief executive replied: “I know I would be considered a biased party, but I would say no. Never get too high on the highs or too low on the lows.”
He pointed out that the provision of devices enabling tourism industry operators to accept debit and credit card payments from visitors had led to “greater spend, greater transactions, greater productivity and greater GDP” compared to when they could only accept cash. And, while cash typically disappears or is misappropriated when lost or stolen, Gowon Bowe said digital transactions create an “audit trail” that allows for tracing and recovery. “The cost of cash and the cost of loss of cash are far greater than those associated with
digital payments mechanisms,” he added.
“It [Friday’s outage] was a major inconvenience and one that speaks to the reliance on digital payments and what happens if they fail. But we have to look at it in the broader context. Critics will say this is why we need cash, but the reality is it was a global phenomenon.
“The reality is how often does this transpire, and is it going to create super critical problems? If I can’t pay for my groceries at 9am, but pay for them at 9pm, is that life threatening?”
The Clearing Banks chief confirmed he was among those impacted by the IT meltdown as he was unable to pay for gasoline with his car due to having no cash and being reliant solely on a debit card that could not be processed.
Acknowledging that the CrowdStrike failure exposed the need for Bahamian companies to have business continuity and other fall-back plans, Gowon Bowe added: “The protection that comes from card payment transactions far outweighs the inconvenience of these one-off events that happen every few years....
“Digital banking is certainly safer. Sometimes you run into these anomalies, and you have to ask if these anomalies are outweighed by digital banking services’ reduction in fraud, reduction in loss, and ease of payment and efficiency. They far outweigh this type of event. Being interrupted for a day doesn’t outweigh the benefits of being able
to take more of a visitor’s wallet every other day.”
Gowon Bowe, adding that he could only speak for the impact on Fidelity Bank (Bahamas), said Friday’s IT meltdown only affected its merchant terminal services.
“Those are the merchant terminal devices within the retail industry,” he added, “as it relates to the pointof-sale devices’ ability to use credit and debit cards.
“We were back up and running by 1.30pm-2pm on Friday. We don’t use CrowdStrike for our products so we didn’t have any issues with our systems directly but our processor; our service provider, did so. We had the consequence of their outage for that period of time. Our ATMs were not impacted, the online banking platform was still functioning and branch activity was still functioning.”
The Clearing Banks Association chief added that both the industry’s Automated Clearing House (ACH), which processes transactions between
several hours a day, as co-chief executive Ted Sarandos emphasised. The streaming giant therefore spends around $17bn per year on series, films and live broadcasts. And the amount will increase with sales growth. Netflix has recently experimented more with live events, and is also venturing into the expensive sports broadcast business with two games of the American National Football League (NFL) at Christmas.
customers of different Bahamian banks, was still operating on Friday as was the Real Time Gross Settlement (RTGS) system that handles the larger payments between banking institutions.
“I would venture to say 60 percent of commerce was not impacted,” Gowon Bowe told Tribune Business. “If you were doing a wire transfer, sending something in cash, it was not an issue. As it relates to the ACH and the exchange of information between banks, that was happening as normal. It was contained in the merchant POS category.”
A TECHNICIAN works on an information display near United Airlines gates at Chicago O’Hare International Airport in Chicago, Friday, July 19, 2024, after a faulty CrowdStrike update caused a major internet outage for computers running Microsoft Windows. Photo:Carolyn Kaster/AP
IT meltdown ‘wake up call’ for local business
“I felt sorry for all the people at the airport. They had a hard time. That tells you what could possibly have happened. I think you always have to have a back-up plan because if something like this happens on a major scale we cannot close the doors completely. At least we wouldn’t want to. We’d have to process manually even if it means writing customers up manually and putting them in the system later.
“We cannot stop business completely.” Ms Symonette added that credit and debit cards are the “most popular form of payment” behind cash, with the latter accounting for 50 percent of transactions and the cards around 40 percent.
“Definitely it’s a wakeup call,” the Super Value
chief said. “It’s not until it happens that you think you have to do something about it. Everything is now back to normal. Everybody was able to work with us and find some other way to pay.”
Mark S Turnquest, the 242 Small Business Association and Resource Centre’s (SBARC) founder, told Tribune Business that several of his members and clients reported losing sales because credit and debit card transactions could not be processed although the actual amounts are unknown.
“All the card machines were down. It was very rough,” he said. “They lost some sales because of that. There was nothing they could do. People couldn’t pay by card and had to leave. A lot of people came
N O T I C E
BASE 8 HOLDINGS LTD.
NOTICE IS HEREBY GIVEN as follows:
(a) BASE 8 HOLDINGS LTD. is in dissolution under the provisions of the International Business Companies Act 2000.
(b) The dissolution of the said Company commenced on the 5th day of July 2024 when its Articles of Dissolution were submitted to and registered by the Registrar General.
(c) The Liquidator of the said Company is Peter D. Cartwright, of 204 Saffrey Square, East & Bay Street, Nassau, Bahamas
Dated the 22nd day of July, 2024
PDC CORPORATE SERVICES LTD.
Registered Agent for the above-named Company
in and said they wanted to pay by credit and debut car but it couldn’t be done. People couldn’t do anything. They lost sales, one or two of them, who said it was disruptive.”
Vasco Bastian, the Bahamas Petroleum Retailers Association’s vice-president, told Tribune Business that the outage had a minor impact on his gas station where some customers had to be “turned away” because Royal Bank of Canada’s (RBC) platform was down.
“It’s just part of business. You have to take the good with the bad,” Mr Bastian said. “The whole world is embracing technology and this is just one of the glitches in the global advance of technology. The guys in technology will figure this out, correct it and resolve it. Embrace technology or get left behind. If you’re going to survive in this world you have to embrace technology. You have to take the good with the bad.”
Keith Roye II, Plato Alpha Design’s chief operating officer, told Tribune Business: “I think most
definitely it’s a great wake-up cal not only for businesses globally but businesses in The Bahamas. I believe companies, first of all, need to look at the level of access and level of control vendors have, and what is done in terms of giving persons access to their systems.”
Calling for companies to maintain a “zero trust” stance when it comes to access to their data and systems, he added that the private sector may also need to consider outsourcing IT functions if they lack the necessary in-house expertise and resources.
“It is always important, and gets even more important as your company grows and you start to service more and more customers,” Mr Roye said. “When a company starts out, you may not have the resources to hire an internal IT team.
“But as time goes on and your revenue increases, company heads must put serious thought into hiring full time competent IT staff. It is also prudent to know where your team is strong and where you may have
to continue outsourcing to external service providers.
“Data security is very important,” he added “Not only that but data ownership and system control. By doing this you then limit the damage an issue like this would cause. You wouldn’t allow auto updates to all of your systems, like what happened to many companies in this case, even if they are a trusted vendor without first persons on your internal staff reviewing and verifying the update.”
Duran Humes, Plato Alpha Design’s chief executive, added: “I look at it from the perspective of how fragile the world is due to our reliance on technology. All it took was one company making a mistake that caused a lot of havoc. All companies must reassess the level of access and control their vendors have to their internal systems, especially vendors that have software with access to multiple systems.
“Ideally, what comes out of this is a better understanding of what’s called zero trust in the cyber security world where you, by
‘Unfriendly’ society found illegally selling insurance
FROM PAGE B1
Friendly societies are collectives formed by groups for their mutual benefit. The Insurance Commission’s annual report did not mention whether any further legal action was taken against this entity such as the imposition of fines or other sanctions against its principals.
Elsewhere, the Insurance Commission said the process of combining the domestic Insurance Act with the External Insurance Act has begun. “The process of amalgamating both pieces of legislation has begun and involves not only the amalgamation but also amendments to the legislation,” the regulator said.
“The Insurance Act, External Insurance Act and accompanying regulations are being amalgamated into a single Insurance Act and regulations. The primary objective of the amalgamation is to eliminate the preferential treatment of external insurance companies over domestic insurance companies.
“Additionally, the amalgamation aims to ensure that the legislation is progressive, innovative and positions the insurance industry to enhance the jurisdiction’s attractiveness for those interested in conducting business in The Bahamas.”
Dana L. Munnings-Gray, the Insurance Commission’s superintendent, said the regulator is “unwavering” in its drive to upgrade the industry’s legislative regime. “The Commission is unwavering in its commitment to harmonise and modernise Bahamian insurance legislation,” he wrote.
“A significant achievement in 2023 was the ongoing amalgamation
process of the Insurance Act 2005, the Insurance (General) Regulations 2010 and the External Insurance Act 2009. This strategic initiative aims to streamline the legislative and regulatory framework of the Commission, fostering clarity and operational efficiency for our key stakeholders.”
Mrs Munnings-Gray said this had already led to a governance amendment where the Insurance Commission’s chairman is no longer the superintendent of insurance who, in effect, is the regulator’s chief executive, but a non-executive director.
Keith Major, who is now the Insurance Commission’s chairman, added: “Significant progress has been made in amalgamating the Insurance Act 2005 and the External Insurance Act 2009. This process has highlighted the need for even deeper, far-reaching amendments to address emerging issues within the Bahamian insurance sector.”
He added that the regulator plans “a comprehensive review” to ensure the insurance supervisory regime protects policyholder interests; safeguards against insurance company insolvencies; and maintains “a fair and competitive market” while also accounting for new and emerging risks such as climate change.
The Insurance Commission, in its analysis of property and casualty
default, do not trust anyone inside or outside of your company without some sort of verification first.
“This highlights the importance of having a rock-solid testing and release plan that has multiple people involved with verification, so whatever the update is doesn’t damage mission critical systems,” Mr Humes added. “Along with that, having and thinking through failover systems or processes is important.
“What happens if my credit/debit card machine goes down? What happens when my staff are unable to access our point-of-sale or customer information system? These are critical things to think about and if you don’t have a continuity plan in place your business will suffer loses in situations like this.
“Having processes in place in the event something happens with your mission critical software could determine if you lose two percent of your revenue or up to 20 percent of your overall annual revenue due to a single incident like this.”
sector, said: “Gross premiums in the property and casualty sector totalled $535.4 [compared to] $479.1m in 2022, an increase of $56.3m representing 12 percent over the prior year. The increase in gross premiums is largely attributed to the increase in rates in the reinsurance market, particularly on catastrophic risks impacting property insurance.
“As the economy continued to expand, and construction activity was on the rise, the volume of insurance underwritten in the general market also increased at a moderate pace. However, given the continued challenges obtaining reinsurance, the local market was constrained with regards to its capacity to underwrite new business.”
Bahamian property and casualty insurers have no choice but to purchase significant amounts of reinsurance on an annual basis because their relatively thin capital bases mean they cannot underwrite all risks in this nation.
As a result, premium prices paid by local homeowners and businesses are dictated by the reinsurance market. Those with mortgages, though, are mandated by the loan contract to insure or their lenders take out coverage on their behalf.
Bahamian property and casualty underwriters last year revealed that insurance costs had hit a record 26-year high, and acknowledged that the affordability of insurance is becoming an increasing concern with reinsurance costs at their highest-ever level.
ON A SUMMER SUNDAY, BIDEN WITHDREW WITH A TEXT STATEMENT. NEWS OUTLETS STRUGGLED FOR VISUALS
By DAVID BAUDER AP Media Writer
IN AN intensely visual news world, a seismic week of politics was transformed again in an instant on Sunday by something almost old-fashioned: a printed statement.
President Joe Biden’s announcement that he would not run for a second term was dropped into his social media feed at 1:46 p.m. Eastern, followed 33 minutes later by an endorsement of his vice president, Kamala Harris. Still recovering from COVID, the president did not appear on camera. Which meant, for news outlets, scant to no visuals. There was also virtually no warning, leading to initial concerns that the president’s X feed had been hacked. The Associated Press filed a “flash” alert at 1:54 p.m. Eastern. Television networks broke into programming between 1:50 (Fox News Channel) and 2:04 p.m. (ABC).
It was, the Associated Press wrote, “a late-season campaign thunderstrike unlike any in American history.” CBS News analyst Ashley Etienne called it “an incredible day in American history.” Hungry for visuals, and not finding them
After a week saturated with the endlessly repeated and parsed video of former President Donald Trump being shot at a Pennsylvania campaign rally, and the carefully choreographed four-day television show of the Republican National
Convention that followed it, here was a dramatic news story that lacked the visual element in almost every way. News shows on cable, particularly when covering live events or breaking news, rely on video from a scene and its aftermath to provide the all-important connecting thread between talking heads and anchor updates. With no video Sunday other than “b-roll,” or old footage of Biden, news channels had to turn elsewhere.
But they even had to scramble to find people who could talk about it at all. CBS’ White House correspondent, Ed Keefe,
sounded out of breath when he was reached on the phone. Because it was a summer Sunday afternoon, TV news’ first string wasn’t immediately available, giving opportunities to ABC’s Rachel Scott, CBS’ Kristine Johnson and NBC’s Hallie Jackson to anchor the initial reports. As the news sunk in, others interrupted their weekends to rush into an office — Wolf Blitzer on CNN, John Roberts on Fox News Channel, Rachel Maddow on MSNBC. ABC and CBS spent more time on the story than NBC, which switched after a half hour for NASCAR coverage.
N O T I C E
BASE 8 HOLDINGS LTD.
Creditors having debts or claims against the abovenamed Company are required to send particulars thereof to the undersigned c/o P.O. Box SP60326, Nassau, Bahamas on or before 21st day of August, A.D., 2024. In default thereof they will be excluded from the benefit of any distribution made by the Liquidator.
Dated the 22nd day of July, A.D., 2024.
Peter D. Cartwright Liquidator 204 Saffrey Square East & Bay Street, Nassau Bahamas
Disneyland workers authorize potential strike ahead of ongoing contract negotiations
ANAHEIM, Calif. Associated Press
THOUSANDS of workers at Disney's theme park and resort properties in California voted late Friday to authorize a potential strike, as contract negotiations drag on over wages, sick leave and other benefits.
The strike authorization was approved by an overwhelming margin, nearly 99% of the members who cast votes, according to a union statement. The election was held by a coalition of four unions, which represents 14,000 Disney ride operators, store clerks, custodians, candy makers, ticket takers,
Delta
parking attendants and other employees.
The vote does not mean a strike will happen, only that union leaders now have the option to call a strike in the event that they are unable to negotiate a new contract deal with Disney. Leaders from both sides return to the bargaining table starting Monday.
"We greatly appreciate the important roles our cast members play in creating memorable experiences for our guests, and we remain committed to reaching an agreement that focuses on what matters most to them while positioning Disneyland Resort for growth and job creation," the company said in a statement.
Elizabeth Gonzalez, a day custodial cast member at Disney California Adventure, said in the union statement that she knows colleagues who work two and even three jobs or live in a car to make ends meet.
"I am worried as a future mom for the family I'm creating right now," she said. "Disney can't call themselves a family friendly company while so many cast members and their families are struggling."
Union members have been in talks with Disney over wage increases, safety measures, attendance policies and other benefits since April.
Air Lines says cancellations continue as it tries to
restore operations after tech outage
By The Associated Press
AIRLINES, including Delta Air Lines, continued to struggle to restore operations two days after a faulty software update caused technological havoc worldwide and resulted in several carriers grounding flights. Total cancellations within, into or out of the U.S. on Sunday clocked in at 1,461, according to the latest data from FlightAware. Delta and United Airlines topped the cancellations.
Delta Chief Executive Ed Bastian said in a message to customers Sunday that flight cancellations continued as the airline tried to recover its systems and restore operations. He noted that the pause in Delta's operations resulted in more than 3,500 Delta and Delta Connection scrubbed flights. Delta has been offering waivers to affected customers.
Bastian noted that that one of their crew trackingrelated tools was affected
and unable to effectively process the unprecedented number of changes triggered by the system outage.
"The technology issue occurred on the busiest travel weekend of the summer, with our booked loads exceeding 90%, limiting our re-accommodation capabilities," Bastian wrote. "I want to apologize to every one of you who have been impacted by these events."
RESTAURANT CRITIC’S DEPARTURE REVEALS POTENTIAL HAZARDS OF THE JOB
By DEE-ANN DURBIN AP Business Writer
RESTAURANT critics appear to have the best job in journalism, enjoying meals a few nights a week on someone else's dime.
But New York Times restaurant critic Pete Wells had painted a more complicated picture. In a recent column, Wells announced he's leaving the beat because the constant eating has led to obesity and other health problems.
"Intellectually, it was still really stimulating, but my body started to rebel and say, 'Enough is enough,'" Wells told The Associated Press. "I just had to come face to face with the reality that I can't metabolize food the way I used to, I can't metabolize alcohol the way I used to and I just don't
need to eat as much as I did even 10 years ago."
To write a review, food critics usually make two or three visits to a restaurant and bring a handful of dining companions so they can taste as many dishes as possible. If the restaurant has a special focus on wine or cocktails or desserts, they try those, too.
"You have to sample the full range of the menu," said Ligaya Figueras, the senior food editor and lead dining critic for the Atlanta Journal-Constitution. "If I really felt like a salad today, I can't just have the salad." Special features, like lists of the best places to get pizzas or hamburgers, may have critics eating the same fare for weeks. MacKenzie Chung Fegan, a restaurant critic for the San Francisco Chronicle, sampled Peking
NOTICE is hereby given that GIFTON ALPHONSO LEWIS of Yamacraw Hill Road, Yamacraw Estates, P.O. Box CB-12739, New Providence, The 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 whyregistration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
duck all over the city for a story about a restaurant that specialized in the dish.
"There was a two-week period where I was eating more duck than anyone's doctor would advise," Fegan said.
All that restaurant eating can take a toll. In a 2020 study published in the Journal of Nutrition, researchers at the Friedman School of Nutrition Science and Policy at Tufts University found that 50% of meals at full-service U.S. restaurants – and 70% of those at fastfood restaurants -- were of poor nutritional quality, according to American Heart Association guidelines. Less than 1% were of ideal quality.
Dariush Mozaffarian, a cardiologist and Tufts professor who was one of the study's authors, said
restaurant meals tend to be lower than ideal in whole grains and legumes, modestly lower in fruits and vegetables, and modestly higher in salt and saturated fat.
For the period the study examined, between 2003 and 2016, the nutritional quality of food in grocery stores improved, Mozaffarian said. But restaurants didn't make similar changes, he said.
"I can't tell you how many restaurants I go to and on every person's plate there are French fries," Mozaffarian said. "There are not an equal and diverse array of healthy and unhealthy menu choices."
To be fair, Fegan said, diners are looking for something delicious when they go out to eat, "and a lot of
NOTICE is hereby given that KEMILA KENYA EDMOND of Woods Alley, New Providence, The 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 whyregistration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
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 whyregistration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
times that means something with fat and sodium."
"If I'm looking at the menu thinking, 'What is the most exciting thing on this menu?,' it's probably not a side of broccoli rabe," she said.
Figueras deals with the challenge in several ways.
On the nights she's not
dining out, she says she is "hypervigilant" and eats mostly vegetables. She plays tennis and walks her dog to stay in shape. And when she's heading to a restaurant, she eats fruit or another healthy snack so she won't arrive hungry.
NOTICE is hereby given that PERRY FRANCOIS of Baillou Hill Road, New Providence, The 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 whyregistration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE is hereby given that MARILIA ARIS CHARLES of Cowpen Road, New Providence, The 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 22nd day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE is hereby given that CAMELIN NOTERA PALMER-ROX of P. O. Box FH-14104, #16 Barbara Street, New Providence, The 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 whyregistration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE is hereby given that DAPHENIE DORLEANS of Croton Road, Flamingo Gardens, Nassau 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 22nd day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that ROBANSON DESHOMME of Fox Hill Road, Nassau, 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 22nd day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that SHAVINE ANNA-LEE MURRAY-HALL of Bailou Hill South, Mars Road, New Providence, The 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 whyregistration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
Small businesses grapple with global tech outages created by CrowdStrike
By ANNE D'INNOCENZIO and HALELUYA HADERO AP Business Writers
AN OWNER of a consumer insights research firm couldn't pay her employees, make Friday's deadline to sign a contract for a new business or send key research to a key client.
A psychiatrist, who runs a virtual mental health practice in Maryland, saw his business hobbled as some of his virtual assistants and therapists couldn't either make phone calls or log on to their computers. And a restaurant owner in New York City was worried about how he was going to pay his vendors and his workers.
Businesses from airlines to hospitals have been grappling with a faulty software update that caused technological havoc worldwide on Friday, and its repercussions continued through the weekend. The breadth of the outages highlighted the fragility of a digitized world dependent on a few providers for key computing services.
But the problem appeared to divide those affected into haves and have-nots. Major customers of Microsoft and CrowdStrike are getting IT support to resolve the issues, but many smaller businesses whose Windows PCs may have received the problematic update are still struggling.
Take Tsvetta Kaleynska, owner and founder of the Manhattan-based consumer insights company RILA Global Consulting, which has Fortune 500 clients. As of Saturday, she resolved the payroll issue and she got an
extension until Monday on the research project. But the prospective client will not move forward with the new contract, cutting her annual earnings by nearly 25%, she estimated. The problem: she couldn't sign the contract because Docusign, which runs on Microsoft software affected by the faulty update, was down.
"If I were part of a big company, then I would be able to delegate and get support from computer science or security services," Kaleynska said. "But as a small business owner, I am
THE LOGO for CrowdStrike and a Spirit Airlines webpage are shown on a computer screen and mobile phone screen, in New York, Friday, July 19, 2024. A global technology outage grounded flights, knocked banks offline and media outlets off air after a faulty software update disrupted companies and services around the world and highlighted their dependence on just a handful of providers.
depending only on myself. It's pretty devastating."
On top of Kaleynska's business issues, she had to bring her ill daughter to a local hospital Friday because the hospital's phone lines were down.
Kaleynska, an immigrant from Bulgaria who became a U.S. citizen in 2023, said she's learned a hard lesson: "Our lives are very fragile because they're based on technology, and we depend on technology."
CrowdStrike is one of the largest cybersecurity firms in the U.S. and has a list of customers that includes more than half of the Fortune 500 companies as well as small and medium-sized businesses.
Following the outage, the company provided an initial fix through a software update. But many computers are expected to need hands-on work that could
Photo:Richard Drew/AP
take days, if not longer, to complete.
For many small businesses that are impacted, that could mean working around the clock this weekend to make sure their systems are up and running, said Wedbush tech analyst Dan Ives.
"Small businesses rely on third parties for this not to happen and instead, it became a 'code red' situation," Ives said.
Overall, Ives noted tech problems can be easier to fix for big companies that have a sizable number of experts on their payroll as opposed to small businesses who could face more of an "uphill battle" because they have fewer technical resources.
"The ripple effects from this could be felt for days and weeks ahead," Ives said.
"It's not just a black eye moment for CrowdStrike,
but for the broader industry. You can't have one fat finger update take down a global ecosystem."
Ari Lightman, a professor of digital media at Carnegie Mellon University's Heinz College, agreed, noting the amount of money big companies spend on Microsoft and CrowdStrike is likely a large portion of their IT budget. On the other hand, small businesses can look at information online on how to resolve the outage. CrowdStrike has posted step-by-step manual fixes to its blog, but it can be intimidating for those who are less tech savvy.
Lightman said those corporations could sue for a loss of business, but small ones might use class action suits to go after CrowdStrike for compensatory damages.
The issue is affecting small businesses differently.
Heather Garlich, a spokeswoman at Arlington, Va., grocery industry group FMI, said the outages were "somewhat spotty and inconsistent depending on how businesses use certain Microsoft tools."
Wall Street finishes worst week since April with more losses
By STAN CHOE AP Business Writer
U.S. stocks slumped Friday in another washout, as businesses around the world scrambled to contain the effects of a disruptive technology outage. The S&P 500 fell 0.7% to close its first losing week in the last three and its worst since April. The Dow Jones Industrial Average dropped 377 points, or 0.9%, while the Nasdaq composite sank 0.8%.
It was only on Tuesday that the S&P 500 set its latest all-time high. At first, pressure built on the Big Tech stocks that have been the market's biggest winners, amid criticism they simply grew too expensive. Nvidia, for example, is still up 138% this year amid a frenzy around artificial-intelligence technology, even after falling 2.6% Friday and 8.8% over the week.
Gains for previously unloved areas of the market had helped to offset some of those declines: Smaller stocks and companies whose profits are closely tied to the economy's strength were rising. That sparked hopes for a market where more stocks are rising, rather than just a handful of dominating elites, which market watchers say would be healthier.
"This rotation can continue, but it doesn't always have to be where they're rising faster, it could be because they are falling
less," according to Brian Jacobsen, chief economist at Annex Wealth Management. Momentum for those beaten-down areas of the market may be sputtering. The Russell 2000 index of smaller stocks fell 0.6% Friday for its third straight drop, following its huge fiveday run where it shot up 11.5%. Three out of every four stocks in the S&P 500 also sank.
Friday's moves came as a major outage disrupted flights, banks and even doctors' appointments around the world. Cybersecurity firm CrowdStrike said the issue believed to be behind the outage was not a security incident or cyberattack and that it had deployed a fix. The company said the problem lay in a faulty update sent to computers running Microsoft Windows.
CrowdStrike's stock dropped 11.1%, while Microsoft's lost 0.8%.
Richard Stiennon, a cybersecurity industry analyst, called it a historic mistake by CrowdStrike, but he also said he did not think it revealed a bigger problem with the cybersecurity industry or with CrowdStrike as a company.
"We all realize you can fat finger something, mistype something, you know whatever -- we don't know the technical details yet of how it caused the bluescreen of death" for users, he said.
"The markets are going to forgive them, the customers
are going to forgive them, and this will blow over."
Crowdstrike's stock trimmed its loss somewhat through the day, but it still turned in its worst performance since 2022. Stocks of rival cybersecurity firms climbed, including a 7.8% jump for SentinelOne and a 2.2% rise for Palo Alto Networks. The outage hit checkin procedures at airports around the world, causing long lines of frustrated fliers. That initially helped pull down U.S. airline stocks, but they quickly pared their losses. United Airlines flipped to a gain of 3.3%, for example. It said many travelers may experience delays, and it issued a waiver to make it easier to change travel plans.
American Airlines Group slipped 0.4%, and Delta Air Lines rose 1.2%. Comerica dropped 10.5% for one of the market's sharper losses, even though it delivered better earnings for the spring than analysts expected. The bank said it received a preliminary notification that it won't continue as the issuer of the Direct Express debit card for about 4.5 million federal benefit recipients, a program it's had since 2008. American Express sank 2.7% after its revenue for the latest quarter fell short of analysts' forecasts. It was one of the largest reasons for the Dow's drop, despite reporting stronger profit than expected.
Pig transplant research yields a surprise: Bacon safe for some people allergic to red meat
By LAURAN NEERGAARD AP Medical Writer
SOME people who develop a weird and terrifying allergy to red meat after a bite from a lone star tick can still eat pork from a surprising source: Genetically modified pigs created for organ transplant research. Don't look for it in grocery stores. The company that bred these special pigs shares its small supply, for free, with allergy patients.
"We get hundreds and hundreds of orders," said David Ayares, who heads Revivicor Inc., as he opened a freezer jammed with packages of ground pork patties, ham, ribs and pork chops. The allergy is called alpha-gal syndrome, named for a sugar that's present in the tissues of nearly all mammals - except for people and some of our primate cousins. It can cause a serious reaction hours after eating beef, pork or any other red meat, or certain mammalian products such as milk or gelatin.
But where does organ transplantation come in? There aren't enough donated human organs to go around so researchers are trying to use organs from pigs instead — and that same alpha-gal sugar is a big barrier. It causes the human immune system to immediately destroy a transplanted organ from an ordinary pig. So the first gene that Revivicor inactivated as it began genetically modifying pigs for animalto-human transplants was the one that produces alpha-gal. While xenotransplants still are experimental, Revivicor's "GalSafe" pigs won Food and Drug Administration approval in 2020 to be used as a source of food, and a potential source for human therapeutics. The FDA determined there was no detectable level of alpha-gal across multiple generations of the pigs.
Revivicor, a subsidiary of United Therapeutics, isn't a food company — it researches xenotransplantation. Nor has it yet found
anyone in the agriculture business interested in selling GalSafe pork. Still, "this is a research pig that FDA approved so let's get it to the patients," is how Ayares describes beginning the shipments a few years ago.
Revivicor's GalSafe herd is housed in Iowa and to keep its numbers in check, some meat is periodically processed in a slaughterhouse certified by the U.S. Agriculture Department. Revivicor then mails frozen shipments to alpha-gal syndrome patients who've filled out applications for the pork.
Thank-you letters relating the joy of eating bacon again line a bulletin board near the freezer in Revivicor's corporate office. Separately, pigs with various gene modifications for xenotransplant research live on a Revivicor farm in Virginia, including a GalSafe pig that was the source for a recent experimental kidney transplant at NYU Langone Health.
THE NEW York Stock Exchange is shown on July 16, 2024, in New York. Shares have fallen in Asia on Friday, July 19, 2024, after a broad washout across Wall Street dragged U.S. stocks lower.
