| Gulfstream Airlines planning Bahamas route expansion |
JAMMAL SMITH NG Business Reporter jammal@nasguard.com Published: Jun 15, 2011
After filing for bankruptcy and subsequently going through a restructuring exercise, Gulfstream Airlines has its eyes set on a 50 percent increase in flights into The Bahamas starting this fall, according to the company’s new CEO. Darrell Richardson said the Florida-based carrier is refocusing its efforts, with a “Take back The Bahamas” campaign in the works. “We have boots on the ground there every day," Richardson said. “Our goal is to make every resort in The Bahamas a sales agent for our company.” The airline is reportedly working on expanding its fleet, and is currently in negotiations with three aircraft makers to acquire 10 turboprop aircraft that seat up to 45 individuals. Its current aircraft do not have lavatories and are too small to accommodate flight attendants. The company isn’t planning on relaunching its routes back into Nassau, saying increased competition in the capital will not make it the best avenue for expansion. It will continue to work on its current Family Island services, which include Andros, Freeport, Treasure Cay, Marsh Harbour, North Eleuthera, Governor’s Harbour, George Town and Bimini. The intended resurgence of Gulfstream comes after it experienced some turbulence last year, when the airline filed for Chapter 11 bankruptcy in order to restructure its debt and secure long-term financing. Up to $5 million in debtor-in possession financing was arranged with Chicago-based asset-management company Victory Park Capital Advisors. Former CEO David Hackett said at the time that economic challenges influenced the decision to file for bankruptcy. "The impact of our borrowing in the last several years to cope with consistently high fuel costs, and the economic impact of declining traffic, made it too difficult for the company to continue to meet its debt repayment needs," Hackett said at the time. The flight carrier also faced harsh penalties with the Federal Aviation Administration in 2009, as the authority was seeking $1.3 million in civil penalties from Gulfstream for violating rules on pilots’ and dispatchers’ work hour limits and not maintaining equipment properly. Gulfstream offers over 150 daily flights to 18 destinations in Florida and The Bahamas. |
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