Two bidders remain for acquisition of Nassau Flight Services

posted on 30th August 2019 by Justin Burns
Two bidders remain for acquisition of Nassau Flight Services
The race to purchase ground handling company Nassau Flight Services (NFS) has seen three bidders reduced to just two, according to reports in the Tribune.

Key presentations from the remaining bidders will take place on Tuesday for the state-owned, Bahamas based company, to a committee tasked with choosing the best offer.

“Part of the due diligence process is to meet with the bidders to discuss their proposal and ensure the committee fully understands the details,” said director of aviation, Algernon Cargill.

“We eliminated one, so there are now two. We are meeting with them next week to review their proposals, and want to ensure we ask a few questions and get to know the principals who want to buy the company.”

Although the government-appointed evaluation committee can make a recommendation, any winning bidder will still need approval from the cabinet, and so Cargill said there was a possibility all offers could be rejected.

Also on the evaluation committee are Wendy Craigg, chair of the Bahamas Civil Aviation Authority (BCAA) Board, Walter Wells, accountant Philip Stubbs and Ryan Sands, an attorney with the Attorney General’s Office.

“Nassau Flight Services, as we’ve said on numerous occasions, is of the right size for a mid-size Bahamian company to absorb,” said Dionisio D’Aguilar, minister of tourism and aviation.

“It probably needs a fresh look, and it needs fresh investment. Ninety-nine percent of its revenues go on payroll, so that does not leave much room for capital upgrades. It needs a new business plan, approach and also investment in equipment and technology.

“There are those that think the Government should own everything. I think this [Nassau Flight Services] is probably best suited for a private sector entity to run and bring about the necessary investment in the business.”