Inter-Island Air Transport Connectivity: The Case of the Bahamas

Air connectivity is a critical driver of social welfare and economic development, yet its provision remains uneven in Small Island Developing States. In The Bahamas, geographic dispersion, low population density, and financial constraints challenge the viability of domestic air services. The Bahamian aviation industry faces several challenges. Currently, there is no easy movement between the islands. Most of the local operators do not have the schedule to transport international passengers on the same day to different Bahamian islands, so the alignment of airline schedules to connect larger aircraft with smaller aircraft of domestic operators presents a challenge for passenger travel.

This study investigates whether there is a need to improve inter-island air transport connectivity in The Bahamas and whether there is passenger demand. What are the potential challenges, and what should be the strategies? While Nassau serves as the primary hub, most other islands lack direct connectivity. This situation raises critical research questions:

We conducted interviews with aviation stakeholders, including government officials, airline executives, and airport administrators. We collected passenger traffic data from CAAB for key islands (Exuma, Long Island, and Cat Island) covering 2010–2022. We used passenger traffic data from CAAB to illustrate patterns of demand growth and decline between 2010–2022 across selected islands. We reviewed reports from IATA, the World Bank, Boeing Market Outlook, and CAPA for international benchmarks and best practices, and the U.S. Essential Air Service program to evaluate subsidy-based solutions for small community connectivity.

The research findings suggest that the current hub-and-spoke system centered on Nassau is inefficient for serving dispersed islands. While passenger demand is uneven across the archipelago, social and economic imperatives justify improving connectivity beyond purely commercial considerations. Additionally, air connectivity improvements must align with hotel expansion and tourism development to avoid demand-supply mismatches.

Drawing from the U.S. EAS model, government subsidies may be necessary to maintain essential services for smaller communities. Exuma has the strongest case for becoming a second hub due to its traffic volumes, geographic location, and ongoing airport modernization. Collaboration between the government, airlines, and the travel and hospitality sector is vital to ensure route sustainability. Code-sharing agreements and traffic guarantees can reduce operator risk. Smaller, 19–30-seat aircraft offer the flexibility needed to serve low-demand routes profitably.

While inter-island air travel in The Bahamas faces substantial challenges, air transport remains an essential factor for economic growth, tourism development, and social cohesion in the country. Improved inter-island air connectivity will reduce reliance on Nassau, stimulate tourism, enhance resilience in emergencies, and ensure equitable access to transport for Bahamian communities.