Friday, August 12, 2011

Need a lift? Gulfstream invests $85 million in ambitious Out Island expansion.

The company's senior vice president said the airline's plan to double its fleet will change travel to the Out Islands.


Continental/Gulfstream International Airlines is positioning itself to be the primary airlift provider to the Out Islands, investing $85 million in a fleet of Saab planes that will double its airlift capacity into the country.

The first of Gulfstream’s new Saab 340 30-seater aircraft, which will replace its 19-seater planes, is set for delivery in November, according to Jim Swieter, the company’s Senior Vice President of International Development. Another aircraft is scheduled for delivery every month thereafter for two years.

Sweiter said travel to the Out Islands will be changed dramatically.

“There are going to be a lot of changes over the next six months,” Sweiter said. “Basically, this commitment is going to double our seats compared to what we have right now.”

Manager of the Bahamas Tourism Office in Abaco, Wynsome Ferguson, said the move will go a long way in boosting air capacity, adding that increasing competition to service the islands was benefitting guests and the destination.

“That’s going to be huge for Abaco. Airlift has been a challenge for us for a while so with them increasing it, that is going to be very good,” Ferguson said.

“I think with Sky Bahamas also adding services into Florida, this is what competition does -- everyone ends up stepping up their game.”

Ferguson said in addition to Sky and Continental, IBC Airways introduced service into Abaco in June. IBC Airways’ smallest aircraft is a 19-seater, but travel was spacious and comfortable, she said. Gulfstream will be using the same aircraft Sky Bahamas is currently using – the Saab 340, which should also make for a more comfortable service for travellers. Comfort, she said, is very important to travellers.

Another factor in the decision to fly to the Out Islands is the cost of travel, and added capacity should allow continental to bring its prices down, too. Swieter said prices to the Out Islands have already come down “dramatically’’ since he came on in May, and the additional capacity should help to push prices down even further.

Stephen Kappeler, the outgoing president of the Bahamas Out Island Promotions Board, told Guardian Business that Gulfstream recognizes the viability of the Out Islands and views these developments as a major step forward in placing them on the tourism and commerce map.

He used Cat Island to illustrate the point, saying it has no direct flights from the US.

“How can you build hotels and rooms without the routes to bring visitors in?” Kappeler asked.

He is hoping islands like Cat Island will eventually benefit from Gulfstream’s service expansion plans.

Gulfstream is looking at a number of plans increasing demand for flights to the Out Islands. The company is returning to tour operators in Europe to “pull everybody back on board,” according to Swieter. It is aiming to give tourists in the UK, France and Germany, plus major cities throughout the US, a convenient one-stop option for travel to The Bahamas. Flights would connect through Gulfstream’s Orlando hub.

The company also is planning the launch of a promotion with several Fortune 500 company partners, aimed at placing the Islands in front of ten million people within the next 60 days, Swieter said.

Continental has recently come out of a restructuring exercise, and has some outstanding fees with the government, Guardian Business has learned.

Patrick Rolle, director of the Department of Civil Aviation, said that as the matter was in the courts he was not at liberty to discuss the details. He did say, however, that there were outstanding issues, but based on a meeting he had yesterday morning it seemed like a resolution was in the near future.

Rolle said the company had made a commitment in that regard.

Swieter said there will be some rebranding over the next few months, and the old Gulfstream is gone. As for the company, he said: “We’re not going anywhere.”

Promotional campaign on the horizon

The Bahamas is less than sixty days away from a special promotional campaign that will put the Out Islands in front of ten million Texans alongside some well-branded Fortune 500 marketing giants.

PepsiCo, MillerCoors, and Papa John’s Pizza are already on board and the Ministry of Tourism’s Director-General David Johnson is saying the plan will have his full support, according to Continental/Gulfstream International Airlines Senior VP of International Development Jim Swieter.

The program would offer Out Island vacations to customers of participating companies through a system that would work similarly to frequent flyer programs, with immense exposure for the Out Islands.

“You can’t afford this kind of marketing – it would cost you millions,” Swieter said. “And if the Fortune 200 love the concept, the idea has to be worth something.”

I talked to Papa John himself this morning, and he loves this concept of marketing – it’s something that will drive a lot of traffic.”

Under the incentive, a clearing house company will be set up to facilitate the program, which would have nothing to do with Gulfstream, Swieter said.

Swieter did not disclose the details of who would have to kick in how much for the program to work, but said when finalized there would likely be some funds in from the government or Out Island Promotion Board.

Participating hotels in the islands would also need to kick in some complimentary rooms, but with an average of 50 percent occupancy, he thought the cost would be worth the exposure.

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