Is Bermuda Star rising?
Over the years, there have been several proposals for a Bermuda airline. In addition, millions of words have been spoken and written on the subject, with no clear resolution on the issue. None of the proposals have actually taken flight.
The former United Bermuda Party Government always took the position that the Bermuda Government itself should not be directly involved in any Bermuda airline, either financially, in terms of marketing support, or in terms of preferential treatment compared to any other airlines serving the Island.
By all appearances, the current Progressive Labour Party government takes the same position, although David Allen, the late Tourism Minister, was an advocate of a Bermuda airline when he was in Opposition.
The Government position was and is the right one. National airlines have largely been financial drains, and in some countries have been better (free) carriers of politicians' egos than viable carriers of passengers. Those who remember former Bahamian Prime Minister Lynden Pindling and his relatively small entourage visiting Bermuda on board a Bahamasair jetliner can attest to that.
Bermuda neither needs such an emblem nor can it afford it when it has so many other pressing needs.
But that does not close the door to a private airline carrying Bermuda's name, provided it has a viable business plan and starts flying with the understanding that it must stand or fail alone.
One of the major difficulties facing the tourism industry and, to a lesser extent, international business is the sheer cost of getting to the Island.
That is one of the reasons why new US airline JetBlue's possible arrival is so attractive; it has proven that it can deliver a good service at a lower cost than other airlines. If it came to Bermuda, it could in turn force its competitors to lower their fares.
For that reason, a Bermuda airline that can provide a cost effective service to the Island from the US and, even more importantly, from Europe, is an attractive proposition.
There remain a number of uncertainties, however, which are as true for the Bermuda Star proposal as they have been for all the others.
The first is whether a Bermuda airline with two planes can keep its costs below those of other international carriers. This is going to be difficult if, for example, staff are going to be based in Bermuda at the same time that the airline cannot capture the economies of scale of larger airlines. JetBlue keeps its costs lower because the vast majority of its staff are non-unionised while its aircraft are brand new, meaning they need less maintenance. How Bermuda Star is structured to control costs is key.
A Bermuda airline will also lack the marketing muscle of larger airlines. Potential vacationers looking for air tickets can see prices for Bermuda from Delta, American Airlines, British Airways and so on through newspaper advertisements, travel agents and the Internet. Bermuda Star will have to work hard to gain the same kind of exposure, particularly if the Bermuda Government does not give it special treatment; and it should not as doing so would alienate the Island's other long time air partners.
This is not to say that a Bermuda airline cannot succeed. There is a chance that it can, but it is going to be extremely difficult at a time when airlines around the world are losing money and fighting for their very survival.
Bermuda Star's backers will have to have deep pockets and even more patience if their plan, which has not been released in full, is to succeed.
