"Bermuda Aviation Services is pleased to report the results for the six months ending September 30, 2001. With significant contributions from our non-aviation companies, earnings exceeded those of the same period a year ago. Our satisfaction with the results is mixed with sadness as the events of September 11 not only clouded the outlook for the rest of the year, but of more significance, caused the loss of several positions within the company as we try to overcome the loss of revenue and earnings that will result as a consequence of that fateful day. Revenue for the period was ahead 14% to 11 million whilst net income rose 4.6% to 1.58 million. Expenses for the six months period were 15% higher.
The outlook for our business for the full year is not very good as revenue is expected to decline 18% with net results at year end forecast to be 50% lower than those of last year aviation related revenues for the next six months will decline by more than 2.3 million dollars as schedules are cut and catering uplift is decreased. Contributions from the first half of the year and other diversified interest will however keep the company in the black.
If there was ever a time for Bermuda to address its aviation strategy and the support required to keep air services to the island intact, it is now. It is as a critical component of our economy that not only provides and supports a significant percentage of the jobs in the hospitality industry, but it is the catalyst for a significant number of indirect employment such as restaurants, taxis and retail stores. A lack of direct air services for any significant period will only further damage our fragile tourist industry and exacerbate unemployment. Of equal importance, without a meaningful presence with good gateway options, the damage will be considerable. For not only will the aforementioned jobs disappear bringing additional social costs, but the ability to conduct business in the international sector will also be impacted.
It is also the time for the representative of the island's workers to pause and think about the long term needs of their constituents. Is it raises in salary or jobs? This time of economic difficulty will be protracted, with some analysts predicting 3 or more years before passenger loads return to pre September 11 levels, levels which we considered "not good". Unreasonable request for raises in salary will make it difficult if not impossible for workers to get or maintain full employment as businesses struggle to maintain profitability. These difficult economic times mean all of us, both management and staff will have to face some harsh realities and make many hard choices. Collaboration and the right choices will see us through the difficult period and eventually provide a secure future for all. The wrong ones will bring difficulty and hardship for many.
The management of bas remains focused and determined and have met the recent challenges head on. The initiatives taken so far are having the right effect, ensuring profitability for the short term. They continue to look for new opportunities to strengthen the company and feel reasonably assured that we can remain profitable despite the present difficulties our industry faces."
W. Neville Conyers
Chairman