business@tribunemedia.net
FRIDAY, DECEMBER 20, 2019
$4.56 US airlines want more before returning to GB
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
DIONISIO DâAGUILAR âAmerican wanted to ensure some added infrastructural requirements were put in place prior to them resuming service,â Mr DâAguilar told this newspaper. âThey wanted to ensure that all of the perimeter fencing was restored, although that was not required for the TSAâs purposes. âThey felt we could mitigate the fencing by putting people on the ground to ensure a sterile area; a security area that would remain sterile. But American
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AJOR Bahamian insurers yesterday warned property owners they face âa minimumâ 15 percent premium rate rise in 2020 with Dorian-related claims set to hit peak estimates of $2bn. Patrick Ward, Bahamas Firstâs president and chief executive, told Tribune Business that obtaining proper catastrophe coverage âshould be one of the number one prioritiesâ for Bahamians despite the increased cost and affordability pressures such a significant price hike will bring.
Sky swoops in to block asset sale A A TROUBLED Bahamian airline prevented from flying for over five months has obtained a Supreme Court injunction to block a former partner selling its assets. Sky Bahamas, through an ex-parte application where only its attorneys were present, persuaded Justice Keith Thompson to bar AOG Maintenance Company
from denying it the ability to âaccess and remove its assets contained at the aircraft maintenance hangar situated on premises belonging to Lynden Pindling International Airport (LPIA)â. The December 18, 2019, injunction, a copy of which has been obtained by Tribune Business, also ârestrainsâ AOG Maintenance Company âfrom selling the assetsâ of Sky Bahamas âincluding but not limited
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BISX-listed group urged delay over customs system By NEIL HARTNELL and YOURI KEMP Tribune Business Reporters A BISX-listed food retail group has revealed it pleaded with Customs to introduce its new electronic platform in January âto make the transition a little easierâ, but its arguments were not listened to. Gavin Watchorn, AML Foodsâ president and chief executive, told Tribune Business it had âexpressed that concernâ that it would be better for the Electronic Single Window (ESW) to be implemented in the New
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Year once import volumes were less following the stocking-up for Christmas. Revealing the the online portalâs launch had been âquite challengingâ, Mr Watchorn said AML Foodsâ experience had become âmuch betterâ in recent weeks as he praised Customs for working with the company to address any issues. âI do wish they would have implemented it in January,â the AML Foods chief revealed. âWe had requested it be implemented in January as there would
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⢠Industry: âCan you not afford coverage after Dorian?â ⢠Some premiums to rise 30%; Dorian claims close on $2bn ⢠RoyalStarâs âgross reserveâ $325m, settles 80% of claims Both he and Anton Saunders, RoyalStar Assuranceâs managing director, questioned whether Bahamians can afford not to insure their assets given the potential for Abaco and Grand Bahama-type devastation to occur elsewhere in this nation in coming years. Mr Saunders, revealing that RoyalStar and its reinsurance partners have set aside a $325m âgross reserveâ to deal with some 1,800 Dorian-related claims, conceded that homeowners and businesses will be
âchallengedâ to afford the necessary coverage in 2020. Apologising for this, he urged consumers to âstep back, look in the mirror and say: âIf Dorian can happen elsewhere in The Bahamas, can I afford not to have insurance?â. Revealing that the category five storm had created the âmost workâ seen during his 20-plus years in the insurance industry, Mr Saunders and his Bahamas First counterpart urged Bahamians to do what is necessary to reprioritise their
spending accordingly. The RoyalStar chief said the underwriter has now settled 80 percent of its Dorian-related claims, while Mr Ward disclosed that Bahamas First was âprobably more than 50 percent of the way throughâ as year-end approaches. Besides premium increases, both men confirmed that reinsurers were also seeking âadditional terms and conditionsâ and, in some cases, increased
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Freeport hotel braces for âworst xmas everâ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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Insurers âsorryâ for 15% hike...... but itâs worth it
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
MAJOR US airlines want âgreater infrastructure upgradesâ to Grand Bahama International Airport than their own industry regulators before they will resume flying, a Cabinet minister revealed yesterday. Dionisio DâAguilar, minister of tourism and aviation, told Tribune Business that American Airlines is insisting that the airportâs perimeter security fencing be fully restored before it places the Miami to Freeport route back on its schedule. He disclosed that the airlineâs demands, and those of some international carriers, went beyond what was necessary to satisfy the US Transportation Security Administration (TSA) earlier this week that Freeport/ Grand Bahama could once again be given the all-clear to receive international flights.
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MAJOR Freeport hotel is on track for its âworst Christmas everâ despite enjoying a strong fall, with occupancy rates set to plunge from âthe high 80sâ to around 30-40 percent. Magnus Alnebeck, Pelican Bayâs general manager, yesterday told Tribune Business that the drop-off was due to non-governmental organisations (NGOs) and persons associated with post-Hurricane Dorian relief heading home for the Christmas and New Year period. Predicting that some were unlikely to return, he added that there were too few new arrivals to replace them given that Grand Bahama International Airport had only just re-opened to
⢠After âstrongest fallâ in its history ⢠Occupancies to drop to 30-40% ⢠As Dorian relief workers go home international flights this past weekend. Emphasising that âyou cannot rely on a hurricane every year to fill your hotelâ, Mr Alnebeck said rebuilding airlift was vital to Freeportâs tourism industry and wider economy given that the peak winter visitor season has now arrived. He lamented the lack of information being provided to the hotel sector, and wider industry, on progress in this area and in restoring Grand Bahama International Airport despite both its owners - Hutchison Whampoa and the Grand Bahama Port Authority (GBPA) - being represented on the islandâs Tourist Board. âFor Pelican Bay we had the best September, October
and November weâve ever had, but weâre going to have the worst Christmas weâve ever had,â Mr Alnebeck told Tribune Business. âThatâs because all the people here; the NGOs, the loss adjusters and relief people are leaving. Some will come back in January, but we will not see the same volumes we saw in autumn. âOver the Christmas period, at the most, weâll be between 30-40 percent occupancy. In the fall, we were in the high 80 percents. Without airlift, you cannot create a sustainable model. You cannot rely on a hurricane every year to fill your hotel afterwards. That would be a pretty bad model.â Mr Alnebeckâs comments came as Dionisio DâAguilar,
minister of tourism, revealed that American Airlines and other major carriers vital to providing Grand Bahama with air transport connectivity are demanding more airport upgrades than were necessary to satisfy the US Transportation Safety Administration (TSA) before they will resume flying to the island (see other article on Page 1B). While Bahamasair and Sunwing resumed international flights over the weekend, coinciding with the TSA all-clear, and Silver Airways restarted its service from Fort Lauderdale yesterday, Freeportâs business model depends heavily on
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