Grand Bahama Airport Company is taking "swift and decisive action" to reduce aviation fuel costs and prevent international carriers from terminating services to the island, as some airlines incur $1 million in per annum fuel costs due a price 240 per cent higher than Nassau's.

Vernice Walkine, director-general of tourism, confirmed that some airlines flying to Grand Bahama were incurring $1 million in fuel charges yearly, and had threatened to withdraw services because of the high jet fuel costs at Grand Bahama International Airport (GBI). In January 2010, Grand Bahama's aviation fuel charge was 240 per cent higher at the pumps when compared to Nassau, Ms Walkine revealed at the 12th annual Grand Bahama Business Outlook. Jet fuel costs for carriers reached $5. 41 per gallon in Freeport, compared to $2.26 in Nassau. "This much-widened gap in the fuel cost at GBI has placed us on notice of withdrawal of service, if fuel costs do not match those in Nassau, which is already some 40 cents per gallon or 15 per cent higher than their system average, which they are willing to absorb for an international route," she said. Ms Walkine noted the fuel charges, when related to automobile fuel charges, would equate to a pump price of $4.35 in Nassau, and an astounding $10.44 cents per gallon in Grand Bahama. "To compare further, this adds up to $1 million per year in their fuel charges on a route where regional jets are deployed, like GBI's Delta and US Airways flights when compared to Nassau, and when compared to their Florida routes (same flight distances where fuel charges are significantly lower)," she added. The tourism official warned that a margin approaching $1.5 million in an industry that is losing billions per annum and cutting every possible dollar of excess cost will not be absorbed for long. "If swift and decisive cost reduction measures are not taken within days, we will see the end of certain services within 35 days. So I am happy to report that swift and decisive action is being taken by our partners at the Grand Bahama Airport Company, and we will see a significant reduction in the cost of jet fuel within the next few weeks," Ms Walkine said. "We must accept that no customer, and certainly no airline, is willing to pay a huge premium over Nassau's cost to fly into GBI. "So when this imbalance exists, Grand Bahama simply loses its ability to compete for both the services, in the first instance, and when the service exists, our high carrying cost prevents our fares from being as attractive as those elsewhere, including Nassau."

The director-general revealed that overall tourism figures indicate that the Bahamas attracted about 4.65 million visitors in 2009, an increase of 6 per cent above the previous year. She said the increase has been due mainly to the resurgent cruise sector. Ltd.