01232024 BUSINESS

business@tribunemedia.net

TUESDAY, JANUARY 23, 2024

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By NEIL HARTNELL and YOURI KEMP Tribune Business Reporters BAHAMIAN maritime operators yesterday warned the Government “urgently needs to resolve” the fall-out from the “very confusing” suspension of 1,000 percent and greater hikes in boat registration fees.

Paul Maillis, the National Fisheries Association’s (NFA) secretary, told Tribune Business he was yesterday informed by the Port Department that the fee “suspension” unveiled by Chester Cooper last Wednesday, in his capacity as acting prime minister, does not apply to all types of boats and vessels.

While the fees have indeed been suspended for privatelyowned vessels, including fishing boats, he revealed that the Government agency told him that the hiked fees still apply to commercial craft such as

$5.30 charter boats and passengercarrying vessels.

This means that tour and excursion operators still face up to four-digit percentage increases in their first-time and annual registration fees.

This was confirmed by Adoni Lisgaris, the Bahamas Excursion Operators Association (BEOA) president, who yesterday said the Port Department told him the fees have not been lowered for charter and commercial vessels and he thus must still pay the higher rates.

“I went to meet the Port Controller last week,” Mr Lisgaris said. “He was tied up and I ended up speaking with the assistant controller, and he told me that basically what the deputy prime minister (Mr Cooper) said is not what they understand it to be.” He is now seeking definitive clarification from the Government on the status of the boat registration fees for all vessels.

Resort revenue growth relies on 5-7% room rate increases

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE BAHAMAS is relying on a 5-7 percent increase in room rates (ADRs) to drive resort revenue growth in 2024 due to limited opportunities to expand occupancies, a senior hotelier has revealed.

Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, told Tribune Business in a recent interview that while the nation’s largest industry was set to continue its expansion it will be at a slower rate than last year due to

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Despite the British Colonial’s pre-Christmas re-opening in downtown Nassau, he explained that the resort industry has limited headroom to increase already-high occupancies and grow stopover tourism by volume because around

15-20 percent of room inventory remains off-line compared to pre-COVID. The loss includes both the 694-room Melia Nassau Beach Resort, which Baha Mar’s owner has been demolishing, plus the Atlantis Beach Towers which have been off-line since 2021 awaiting

ROBERT SANDS transformation into the Somewhere Else concept.

As a result, Mr Sands said stopover tourism’s growth - at least from a hotel perspective - will have to be driven by rate increases and “yield

SEE PAGE B3

Providers back competition rules move ‘with open arms’

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net THE move by utilities regulators to consolidate competition supervision with an increased focus on ‘after the fact’ investigations has been welcomed “with open arms” by operators.

The Utilities Regulation and Competition Authority (URCA), in its review and public consultation on competition guidelines for the electronic communications and electricity sectors, is planning to adopt a unified approach and consolidate these criteria into one document as opposed to nine.

The new guidelines include procedural aspects for after-the-fact, or ‘expost’ investigations into alleged anti-competitive practices and abuse of dominant market positions in both industries, as well as procedures for ex-ante (before the event) merger control.

SEE PAGE B4

WINDSOR LAKES DEVELOPMENT

Developer eyes second price rise after hitting $15m in sales

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A SOUTH-west New Providence development yesterday revealed it will increase prices for the second time “in a few weeks” after earning $15m from selling 35 percent of its available lots within five months.

Ryan Knowles, also founder and chief executive of Maison Bahamas Real Estate, told Tribune Business that while not all remaining lots at Windsor Lakes will be impacted the increases on certain options “won’t be insignificant” due to the level of buyer demand for lakefront living.

Describing the community, located in close proximity to Albany and Adelaide

Village, as “a truly unique product”, he disclosed that buyer inquiries and actual sales since marketing of the project started in August last year have thus far exceeded expectations.

With around 60 of Windsor Lakes’ total 173 multi-family and single-family lots already sold, Mr Knowles told this newspaper that the development’s promotional website has received around 1,000 inquiries from potential purchasers during the first four to five months.

He asserted that the interest “signals the market has been waiting” for a community targeted at middle and upper middle income price points, with lot prices starting at $205,000 and going up

SEE PAGE B2

$5.30 Besides the uncertainty over whether the boat registration fee suspension applies to all, Mr Maillis explained that the actions unveiled by Mr Cooper also seemingly mean that no boat owner can licence their vessel until the new fee schedule is published.

He added that this creates additional problems that appear not to have been thought through because, unless the vessel is properly registered and paid up-to-date, commercial fishermen and all boat owners will be unable to secure the necessary insurance for their vessels.

And current boat registrations are also required for fishermen to renew their Business Licences and commercial fishing licences, Mr Maillis said, meaning the suspension has also created uncertainty in these areas.

SEE PAGE B4

Water Corp couldn’t ‘bolt all doors’ on union chief

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Water & Sewerage Corporation could not be expected to “bolt all doors” to keep out a former union president who disobeyed orders to go on vacation by continuing to work, the Court of Appeal has ruled.

Appeal justice Indra Charles, in a unanimous verdict backed by her fellow judges, also found that no evidence was placed before the Industrial Tribunal for it to make the finding that the Government-owned utility was “motivated to take further action” against Ednel Rolle because he had launched “grievance” proceedings permitted by the industrial agreement.

And, in overturning the earlier Industrial Tribunal verdict in favour of the ex-president of the Water and Sewerage Management Union, she found that Mr Rolle placed himself “between a rock and a hard place” through a “volte face” that saw him disavow the industrial agreement he had initially relied upon to challenge the Corporation.

The dispute only involved a claim for $5,590, and the Court of Appeal suggested it had become “a matter of principal” possibly influenced by the fact that Mr Rolle was a former union leader.

It was triggered when Mr Rolle refused to take 17 days’ vacation, beginning on December 17, 2018, as ordered by Water & Sewerage Corporation management. He instead worked for that period and was paid his regular salary, but did not receive vacation pay for those 17 days prior to his retirement on January 21, 2021.

“He asserted that Water & Sewerage Corporation’s deputy general manager unilaterally submitted and approved 17 days’ vacation leave to be taken by him without his consent,” appeal justice Charles said of Mr Rolle. “In defiance of the mandatorily imposed vacation, Mr Rolle elected not to proceed on vacation leave but instead attended work for the entire period.

He thereafter sought vacation pay for the 17 days.

SEE PAGE B5

PAGE 2, Tuesday, January 23, 2024

THE TRIBUNE

Gov’t yet to decide over Abaco ports sum sought for Cooper’s Town almost matches the $41m investment in its initial construction, which was completed by China Harbour Engineering Company (CHEC).

The tender documents, known as Requests for Proposal (RFPs), reveal that the Government wants the ownership structure for both Abaco port PPPs to mirror that which was put in place for BISX-listed Arawak Port Development Company (APD), operator of the Nassau Container Port. APD revealed to Tribune Business it has submitted a bid to take over management and operations at the Marsh Harbour port only.

For both the Marsh Harbour and Cooper’s Town ports, the RFPs stipulate that a combined 20 percent equity ownership will be “offered for sale to the general public” although it does not specify whether this will be via an initial public offering (IPO) or other method.

The remaining 80 percent ownership interest will be split evenly between the Government and winning PPP bidder, with each holding 40 percent. This split matches APD’s structure, where the Government and shipping industry each hold a 40 percent stake.

Meanwhile, among the expansion opportunities identified at the Cooper’s Town port is a 120-slip marina together with international and domestic warehouses, although no such opportunities were identified at Marsh Harbour, which remains the island’s prime commercial shipping port and cargo point-of-entry despite the devastation inflicted by Hurricane Dorian.

Both RFP documents state that each port will be leased to the winning bidder for a 25-year period, in an attempt to ensure they get a return on their upfront capital investment, with the Government wanting them to employ a workforce that is 80 percent Bahamian at a minimum.

DEVELOPER EYES SECOND PRICE RISE AFTER HITTING $15M IN SALES

who bought in early back in August. Their property values are going up and appreciating. There’s a lot more that people can now see and appreciate and, for reason, we are inching prices up a bit and will probably do that a couple more times before the development is completed.”

While declining to reveal the extent of the upcoming increase, as it has yet to be decided, Mr Knowles said: “It won’t be insignificant. It will be a fairly substantial increase on certain lots; not every lot will be increased, but certain lots will go up because of the level of demand.

“Our prime lakefront lots have been selling well, and we want to make sure the price reflects demand, so we just want to bring those things in line. It’s really a truly unique product on the market. The area, back in Adelaide, it doesn’t feel like you’re in Nassau; it feels like somewhere else. It’s something that’s very different and unique to our market; it’s something we haven’t had before.”

Mr Knowles said buyer response “does definitely signal the market has been waiting” for price points and inventory targeted at the middle class, with vacant lots now especially hard to find in communities such as Sandyport and Charlotteville.

“Just through our website we’ve had something like 1,000 inquiries,” he added.

“We’re going through a lot of them. Because the project is still 12 months’ away it’s a situation where some people want to see it develop and progress before they jump in, but based on the level of inquiries we’re getting it tells you so many are out there looking and is the reason why we need more communities at accessible price points.”

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net A CABINET minister yesterday said the Government has yet to make a final decision on the two proposals it received to operate and manage North Abaco’s port.

Jobeth Coleby-Davis, minister of energy and transport, said that the request for proposal (RFP) process has ended after generating two bids for the Cooper’s Town-based port that are currently under review.

She said: “So the RFP process has ended. We have been in evaluation stages.

And we’ve also been taking guidance and instructions from the Office of the Prime Minister to assist to make sure that the right decisions are made for the people of Abaco “North Abaco port, that’s still work a in progress, and discussions surrounding what we got. What we got were two final proposals,

JOBETH COLEBY-DAVIS one that was being considered and reviewed, but hasn’t reached the stage of us making a final decision.”

The Government was seeking qualified bidders to redevelop, operate and manage the Marsh Harbour and North Abaco ports. When it comes to the former, Mrs Coleby Davis said the Government has partnered with the US Embassy to upgrade security and is still reviewing the PPP proposals that were received.

She said: “I can say that Marsh Harbour, we just

agreed a partnership with the US Embassy to support upgrades to the security systems and security plans out there. And so we would be in partnership as the ministry to upgrade it as best as we can to make sure that we are in the right security protocols for when audit time comes.

“And we will be looking to further review the proposals that we got for that port so that we can advance it and proceed.” Mrs Coleby-Davis maintained that the process “’takes a bit more time” due to financial constraints, and the Government wants to ensure whatever decision is made is in the best interests of Abaco residents.

She said: “It takes a little bit more time because we have to consider the financial model of what the proposals are recommending. But we also have to make sure we consider the island and the economic structure, and make sure that whatever is decided is a benefit to the community.

“And so it’s something that we are constantly discussing. It hasn’t been ignored. But we want to make sure that the right decisions are made to support the community as well.” Tribune Business revealed in November that the Government is eyeing a combined $100m investment to transform Abaco’s two commercial shipping ports into facilities that meet global best practices and standards.

The public-private partnership (PPP) tender documents for both the Marsh Harbour and Cooper’s Town ports, which have been seen by Tribune Business, reveal that bidders on the former must show they have combined equal capital and access to debt financing of “at least $60m”. For Cooper’s Town, the figure is slightly less at $40m in collective equity and debt funding.

Several sources, speaking to Tribune Business on condition of anonymity, have described both figures as being on the high side. The

FROM PAGE B1 to $400,000, and home packages costing between $895,000 and $1.2m.

And Mr Knowles also suggested that a lakefront gated community “has never been done in Nassau before on this scale”, with the closest comparison being the homes that border Lake Cunningham. He added that the lakes at Windsor Lake, which will be a central or anchor feature for the community, are scheduled to be completed by the end of February 2024.

“Things are going very well,” the realtor said of the sales drive and infrastructure build-out. “We’ve had a pretty incredible response since we launched the project in August. I would say we are ahead of expectations.

“We did expect it would resonate with the public, and we would have a lot of interest but, generally speaking, we didn’t expect to have so many sales early given that the community is 12 months away from being fully finished.

“So to be at 35 percent sold within four to five months is incredible. We’re approaching; we’re just around 60 or so lots sold. We have 173 lots total, with 37 multi-family and 136 single family.” Mr Knowles said Bahamian buyer interest had been “very strong; possibly stronger than anticipated”, with doctors, entrepreneurs and attorneys all among the purchasers and inquiries.

“It’s really been interesting to see the diversity of the buying persons and the different reasons people are buying,” he added. “We’re up to $15m in sales and counting. As people see the progress on the site, and see the roads coming together

and the lakes, which will be completely finished by the end of next month, they understand the vision and attraction of lakefront living.

“There has never been, in Nassau before on this scale, a lakefront gated community as such. There’s various houses on Lake Cunningham, but to have a gated lakefront community with multiple amenities, it’s something that doesn’t really exist in our market and is really resonating with buyers.”

Lake Windsor’s principal developers are former Chamber of Commerce chairman, Robert Myers, and Bahamas resident, Michael Huttman. Besides Bahamian professionals, Mr Knowles said buyers to-date are persons both seeking extra space and to escape condo living and those wanting to downsize and accept a “slightly smaller package” than in Lyford Cay and Old Fort Bay but without compromising on quality.

He also pointed out that, unlike other communities, Windsor Lakes will permit short-term as well as longterm rentals and leasing. Mr Knowles said he had yesterday spoken to a man from Winnipeg who had located the project’s website and is seeking to construct a holiday home for himself. When not in The Bahamas, the property will be rented out to others.

In response to market demand, Mr Knowles revealed: “We are doing a price increase; a second price increase. This will be the second one going into effect in a few weeks. In all the sales we’ve done so far, the best lots go first, which is generally what happens.

“We want to make sure we’re getting top dollar for our lots, and reward

THE TRIBUNE

Tuesday, January 23, 2024, PAGE 3

‘HUGE BLOW’ IF NO STELLA MARIS PURCHASER FOUND

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net LONG Island’s chief councillor yesterday said the island will suffer a “huge blow” if a buyer cannot be found for the Stella Maris resort.

Ian Knowles told Tribune Business the decision by its principal to place the wellknown hotel on the market for sale, with an $11.75m asking price, was “shocking news”.

“I wasn’t even aware the owners were trying to sell it,” he said. “They ran that operation for many years including a private charter business. Them closing would really hamper the island, especially the northern partn which has the touristic development. It’s one of the major hotels on the island.”

There is nothing to suggest Stella Maris is in any danger of closing. Joerge Friese, its principal, told this newspaper on Monday that “it’s high time to put it in the hands” of an owner able to take it to four-five star status once the $11.75m asking price is met.

He added that he needs “to look for a new future for Stella Maris” and the resort’s present 30-strong workforce with the property now being actively marketed for sale by the Bahamas Property Group.

Mr Knowles, meanwhile, recalled: “Stella Maris has been around since the 1960s. They were one of the first people doing the deep diving with sharks in the ocean. Stella Maris is really a historical place.

“This will really put a damper on the lives of a lot of people on the north side of the island, especially for women. Mr Friese is over 70 years old. It’s really sad news. I just hope people will find the money to buy it because it is in a nice area and it’s a good development that’s been there for the last 50-plus years.

“Stella Maris is the highlight of the island. It was one of the first major developments on the island that tourists ventured in to.

They did deep sea diving and stuff, and were one of the first people in the country to start doing that. They catered to many, many visitors over the years. They have supported a lot of families in the north over

the years in every aspect there is. They taught a lot of the residents how to scuba dive.”

Besides his age, Mr Friese said “a pioneer group” who worked with him on Long Island have all passed away themselves. And his daughter, Jill Smith, and son, Joel, who run the hotel and aviation services respectively, are “both as busy as can be” and also in their late 50s and early 60s.

“I need to look for a new future for all of Stella Maris,” he told this newspaper. “A new future has to be created... We had to curtail its capacity because of COVID and a few other factors, and it’s high time it’s put into the hands of and engaged and financially stable party who can increase its capacity, increase its quality and take it to Out Island four star/ five star.”

Mr Friese said he hoped to attract a purchaser who could exploit Stella Maris’ existing landholdings to complete “a real estate development around the hotel”, although he wishes that the resort “should remain at the heart of Stella Maris where just about

STELLA MARIS RESORT everything starts and everything stops”.

Recalling how the resort in the 1970s, 1980s and 1990s employed double the number of staff it presently has, he said of current workforce levels: “That’s a direct result of two years of COVID and after COVID. Unless you have unlimited bank accounts you have to capture what has been saved so to speak but we’ve come a long way in that regard.

“More than anything it’s my age now. This is my job.

This is what I do. I’d like to

get this done before retirement. My children are so busy with running their operations that they don’t have time for that. There is the motivation. My being at the point of time when I have to finish this job.”

Mr Friese said Stella Maris, which presently has occupancy levels of 35-40 percent, is not going beyond a self-imposed limit of 65 percent maximum occupancy due to staffing constraints and the need to maintain a high level of customer service.

“It’s nothing like what Nassau’s experiencing presently,” he added, comparing Long Island’s tourism industry and hotel occupancies to the capital.

“They’ll prob- ably experience this year large demand because of post-COVID.” Mr Friese, though, said interest in Long Island appeared to be picking up which he attributed to the potential development of the $250m Calypso Cove cruise port in southern Long Island.

Resort revenue growth relies on 5-7% room rate increases FROM PAGE B1 management” produced by still surging post-COVID travel demand and an increase in visitor lengths of stay.

Disclosing that overall hotel bookings for the peak winter season are “trending slightly ahead of last year”, with the Easter holiday weekend falling earlier this year right at the end of March, Mr Sands also voiced optimism that 2024 will be the year when The Bahamas finally “exceeds” its pre-COVID performance from a stopover visitor perspective.

“I think we’re seeing growth, and growth is manifesting itself in the area of increased average daily room rates,” the BHTA president told Tribune Business. “We’re seeing that January is perhaps stronger than last January.

February and March look very strong compared to last year and 2022.

“We should see improvement, but not at the level we saw in 2023 compared to 2022. It’s going to be a mixed bad for properties. A lot of them have achieved high occupancies already.

The occupancies achieved in 2023 were at the upper levels.

“The revenue growth, the important element, will have to come from average room rates and the sale of other amenities on the property. I think we’re going to see some growth there, and that’s where the growth opportunity will come for most people.

Increased length of stay will be for yield management to fine tune.”

Mr Sands said the resort industry is presently predicting ADR growth of between 5-7 percent, and

added: “Until more rooms come on that will be where the additional momentum comes from.

“I think the greatest opportunity for growing tourism revenues this year on an annual basis is in the Family Islands and Grand Bahama. While they have done better, the headroom that exists in Grand Bahama and the Family Islands is much greater than the headroom that exists in New Providence.”

Asked how much room inventory remains offline, Mr Sands estimated “between 15-20 percent” with the former Melia and Atlantis’ Beach Towers likely accounting for more than 1,000 rooms between them. Grand Bahama continues to struggle with a significant room shortfall due to two of the three Grand Lucayan complexes still closed.

“It’s a balancing act, and from the country’s perspective the more rooms we have on line the better...... the ability to generate tourism income for the country,” he added. “But, overall, it looks bright. I am satisfied that we will get to pre-COVID and exceed pre-COVID this year, taking into consideration room inventory isn’t where it was pre-COVID. “Bookings are slightly ahead of last year. It’s a mixed bag but all indications are they are trending ahead of last year’s bookings. Easter is the end of March, and the first quarter is going to be a very strong first quarter.”

Chester Cooper, deputy prime minister and minister of tourism, investment and aviation, previously said The Bahamas likely received “well in excess” of nine million visitors in

2023 due to a “phenomenal” year for the tourism industry.

He added that The Bahamas had comfortably beaten its eight million visitor arrivals target for the year. The nine million figure, once confirmed, will be some one million above projections and 12.5 percent ahead of the original forecast. And Mr Cooper reiterated that the arrivals increase, which is projected to generate more than $6bn in visitor spending, has had a positive impact on the Bahamian economy.

The deputy prime minister said he expects the final visitor arrival numbers for 2023 to be “well in excess” of nine million - the majority again being cruise ship passengers. He added that a major goal for 2024 is to convert more cruise passengers to higher spending, greater-yielding stopovers.

“I think at the end of this year we will end significantly higher than forecasted. We recently celebrated our eighth million arrival; that was at the end of October,” he added.

“As the at the end of 2023, we expect that that number will be significantly higher.

We want to wait until the final numbers are in, but it will be well in excess of nine million.

“We’re very happy about this. We’re going to continue to push towards achieving the 2024 goals, which will include not just arrivals but more conversion of cruise passengers to stopovers. We are going to continue to work to expand airlift. We have done a significant job in 2023 attracting new, direct nonstop flights from the West Coast.

“Jet Blue, Alaska Airlines and other airlines have

added additional routes and additional seats. We’re going to continue this effort; it has worked extremely well for us in 2023. We’re going to continue in 2024.

We are receiving a large number of our guests by cruise, and therefore we are going to have a deliberate and intentional effort to see how we might convert more of those cruise arrivals to stopover arrivals.”

Promising to increase entrepreneurial linkages

to the tourism sector, Mr Cooper added: “We are in the hospitality business and therefore, as a result of this business, everyone is in the tourism business. As we say: ‘Tourism is everybody’s business’.

“So the taxi drivers, the vendors, the hair braiders, the restaurant owners and workers, the hotel owners, operators and workers, the tour guides, everyone has benefited significantly as

a result of these tourism arrivals.

“We are in the process of developing even more entrepreneurial opportunities through the Tourism Development Corporation to ensure the expansive linkages with tourism, and to ensure that the economic benefits continue to flow to all of the population and all segments of the population of The Bahamas.”

PAGE 4, Tuesday, January 23, 2024

THE TRIBUNE

‘VERY CONFUSING’ BOAT FEES NEEDING URGENT RESOLUTION FROM PAGE B1 Voicing concern that fishermen who run charters and excursions will still face the higher fees, he argued a better solution would be for the Government to revert to the former rates until the current ones are adjusted, approved and placed into law and regulation.

Senior commander Berne Wright, the Port Department’s acting controller, declined to comment on or clarify the purported boating fee adjustments when contacted by this newspaper. He instead referred Tribune Business to the Ministry of Transport and Energy, adding: “I really cannot comment after the deputy prime minister.” Jobeth Coleby-Davis, minister of transport and energy, did not reply to a message seeking comment.

However, Mr Maillis, echoing what Mr Lisgaris was told, informed Tribune Business: “I just spoke to the Port Department in Nassau directly an hour ago. They said the private motor vessel and water skiing regulations have been suspended for private vessels, but not commercial vessels such as charter vessels and passenger-carrying vessels and so on.

“Fishing boats are private motor vessels, but here’s the catch. People

cannot register right now.

There’s a suspension of registration. Until the new fees are announced, nobody is allowed to register. Until the new fees are given to the Port Department they are unable to register anybody, but the flip side of that is there will be no prosecutions based on non-registration.

“I was also informed that persons desirous of getting a commercial fishing licence, but who don’t have their vessels registered, they can apply to the Port to proceed with the application notwithstanding the suspension,” Mr Maillis added.

“The Port Department recently reached out to our president [Keith Carroll] and said to inform our members not to come into the office to pay for their vessel registrations at the moment until the matter is resolved. It’s very confusing, and I wish there had been an outright suspension of all the fees but at the moment it appears only the private vessels are suspended.”

Mr Maillis said he and other fishermen felt for Bahamian excursion and tour operators who, at present, seem to be stuck with paying the higher fees. “We are about ensuring Bahamians weren’t disadvantaged by the new regulations,”

he told this newspaper. “It appears Bahamians are still being caught up in the mess the regulations have caused.

“It’s our belief that these fees need to be amended for all Bahamian businesses, not just private vessels. It’s also inconvenient that, at the same time, the registration is suspended outright instead of remaining with the old fees because then people could easily register their vessels rather than having the regulations suspended.”

Mr Cooper, in announcing the “suspension”, said the fees would be reviewed and go through a period of consultation. Given the uncertainty over how long this process will last, and the timing of any new fees schedule’s introduction, Mr Maillis said “there needs to be accommodation for vessels to be registered” given the unintended consequences for the maritime industries and associated economic activity.

“This is a matter that urgently needs to be resolved,” he explained.

“You cannot get insurance for your vessel without registration being up-to-date.

While it’s wonderful that the fees have been suspended, there needs to be sufficient action on the alternative or a temporary revision to the old fees.

Providers back competition rules move ‘with open arms’ FROM PAGE B1 A legal and regulatory consultant for Cable Bahamas and its Aliv mobile subsidiary backed the switch to more “ex-post” regulations on the basis that the ex-ante approach can be “time consuming, tedious and bureaucratic” for both regulators and operators.

She said: “We note the movement to ex-post regulation from ex-ante regulation and we, of course, have been advocates for this for some time.

And so we welcome the expost competition guidelines with open arms.

“Ex-post application is very welcomed because a fit-for-purpose ex-post regime is a key requirement for the reduction of the reliance on ex-ante regulations, which are very time consuming, tedious and bureaucratic not only for the operators but also for the regulators.”

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She added that URCA, which last year voiced its displeasure with inconsistent and delayed reporting of network outages by communications providers, could have applied ex-post regulations that required operators to publish their outage statistics so that consumers can factor that in when choosing a provider.

She said: “And we go to the example of the outages consultation by URCA recently where, in our view, rather than the bureaucratic rules and regulations for reporting outages, a market ex-post based solution could have been or should have been considered rather than the bureaucratic proposals.

“In that ex-post example, URCA could have required operators to publish the statistics on their outages on their websites, and encouraged consumers when they’re making choices between the different operators to look at outages as a criteria for which operator am I going to sign up with or move over to. So that’s just an example of that how ex-post works and we’re very excited to see that come on board.”

Rupert Pinder, URCA’s director of electronic communications, said that although there is “value” in the publication of outages

the accuracy of data submitted by licensees has been a challenge for the regulator. He added that once URCA has addressed the challenges around outage requirements they can revisit the publication of related statistics.

He said: “A few years ago, it was a whole consultation around the publication of some of this information and data. I do see some value in that but, of course, that lends itself to some further discussion.

“One of the challenges that we have been having is really in terms of the completeness and overall accuracy from the reported data that we get from licensees. So, again, that requires a substantive work.

“In terms of the outage reporting, we do have some challenges with respect to the whole information symmetry and the whole purpose behind the outage reporting framework. Really, to address that information symmetry, and that is a real challenge for URCA,” Mr Pinder continued.

“Once we have closed some of these gaps with respect to the information symmetry, I guess we can look at more ways in terms of how we can work collaboratively.”

“There was certainly uncertainty when the deputy prime minister announced the suspension.

It was uncertain what was meant by suspension. That needs to be clarified.” Voicing sympathy with the plight of tour operators, Mr Maillis added: “We really feel sorry for the charter boats who are the backbone of the tourism industry when it comes to maritime tourism and excursion tourism.

“It pains us to know they are hurting was well. A lot of fishermen do charter fishing and fishing excursions in the off-season to earn side income to support their commercial fishing” and they are at risk of being caught by the higher fees as well.

The Port Department, though, seems to be on the same page in Nassau and the Out Islands with respect to boat registration fees. One source, who visited one of its Family Island locations yesterday, said: “They informed me nothing has changed. The high fees are still posted. They still apply.

“The woman there told me the deputy prime minister misspoke. He was acting prime minister at the time; top of the heap. The Out Island Port Departments have not received any notification of any changes. It’s

thrown total uncertainty in the air.

“Now there’s hope they will be reduced, no one is paying anything now.

Why give the Government $1,600 that you will never get back from them? While the deputy prime minister stood up and spoke, it has not yet filtered through yet.

The bureaucracy has taken over.”

Family Island fishing and bonefishing lodge owners yesterday confirmed they will wait to register their vessels in the hope that fees will be much less.

Timothy Smith, owner/ operator of Pleasant Bay Bonefishing Lodge in South Andros, told Tribune Business that while he heard the fees are supposed to revert to the original structure he will allow more time for the Port Department to implement the changes before he registers his vessels.

Mr Smith has five boats for taking guests out for bonefishing excursions as well as other forms of fishing, and he said: “I think that with everything else going up the Government should go up too, but not a raise that’s a leap.”

Boat registration fees for some vessels jumped by over 1000 percent, with some boaters who used to pay just $20 for registration now paying over $700 for the same 20-foot vessel.

“I don’t think they should have sprung this on the Bahamian people like that.

So I’m not for this,” Mr Smith added.

Coming out of the COVID pandemic, some small Family Island fishing lodges have not “caught themselves” yet and are urging the Government to “take this into consideration” when it comes to the boat registration fees.

Nathaniel Adams, owner/ operator of Deep Creek Lodge in South Andros, said the Government is “trying to put small fishermen out of business”. He added: “I’ve been in this for the past 43 years and this is the worst I have ever seen it.”

Mr Adams has six vessels he uses for bonefishing excursions and personal fishing and he, too, is allowing more time before he decides to register his vessels. “I’m going to do all of my boats on Wednesday. This was a very bad decision the Government made,” he added.

“I was in Belize on a fishing seminar and their government is encouraging fishermen, and who doesn’t have boats, they will provide them with boats and engines. And when there is bad weather the government will give them a salary.”

US TARGETS IRAQI AIRLINE FLY BAGHDAD, ITS CEO AND HAMAS CRYPTOCURRENCY FINANCIERS FOR SANCTIONS

By FATIMA HUSSEIN and ABBY SEWELL Associated Press THE U.S. on Monday hit Iraqi airline Fly Baghdad and its CEO with sanctions, alleging assistance to Iran's military wing, and imposed a fifth round of sanctions on the militant group Hamas for abuse of cryptocurrency since the Oct. 7 attack on Israel.

The sanctions come as Israel's bombing campaign on the Gaza Strip continues — killing 25,000 Palestinians so far, according to the Gaza Strip Healthy Ministry — and Iranian-backed militias in Iraq launch regular strikes against bases housing U.S. forces in Iraq and Syria.

In the new sanctions, the Treasury Department said Fly Baghdad and CEO Basheer Abdulkadhim Alwan al-Shabbani have provided assistance to Iran's military wing and its proxy groups in Iraq, Syria and Lebanon.

"Iran and its proxies have sought to abuse regional economies and use seemingly legitimate businesses as cover for funding and facilitating their attacks," Treasury Undersecretary Brian E. Nelson said in a statement. "The United States will continue to disrupt Iran's illicit activities

aimed at undermining the stability of the region."

The sanctions block access to U.S. property and bank accounts and prevent the targeted people and companies from doing business with Americans.

Fly Baghdad denied the U.S. allegations and said it would take legal action to demand compensation for losses resulting from the sanctions "as it is clear that the decision was based on misleading and false information and cannot stand before the law."

The Treasury's Office of Foreign Assets Control also designated three leaders and supporters of an Iran-aligned militia in Iraq, Kataib Hezbollah, as well as a business that it says moves and launders funds for the organization.

Since the outbreak of the Israel-Hamas war, an umbrella group of Iranianbacked militias in Iraq calling itself the Islamic Resistance in Iraq has launched strikes against bases housing U.S. forces in Iraq and Syria. The group has said that the strikes are in retaliation for Washington's backing of Israel in the war in Gaza and that it aims to push U.S. troops out of Iraq.

Most of the strikes have fallen short or been shot down and have not caused casualties, but on Saturday

a missile salvo launched at al-Asad airbase in western Iraq injured a number of U.S. personnel and one Iraqi military service member stationed there.

Some of the Iranianbacked Iraqi militias, including Kataib Hezbollah, officially operate under the control of the Iraqi military as part of a coalition known as the Popular Mobilization Forces, which was a key player in the fight against the Islamic State extremist group when it rampaged across Iraq and Syria, seizing wide swaths of territory. In practice, however, the groups largely operate outside of state control.

In addition on Monday, the U.S. sanctioned a network of Hamas-affiliated financial exchanges in Gaza, including financial facilitators that transferred funds through cryptocurrency from Iran to Hamas and Palestinian Islamic Jihad in Gaza.

The U.K. and Australia coordinated with the U.S. on these sanctions.

Hamas has said it planned for a potentially long fight and was "ready to do whatever is necessary for the dignity and freedom of our people."

NOTICE

NOTICE

NOTICE

NOTICE is hereby given that NICKAYLA JANEEL RODNEY of P.O Box SB-52803 Nassau Village, Forbes Street, Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23th day of January 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that ANGELA DREKE SALGADO of P.O Box N-8940 Old Fort Bay, Charlotte Island, Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23th day of January 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that BENNCE PIERRE of P. O. Box SS-19175, Farrington Road, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23rd day of January, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE

NOTICE

NOTICE is hereby given that ADAM BERNARD CALLOO of Soursop Street, Pinewood Gardens, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 16th day of January, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE is hereby given that SHAQUILLE ONEAL WILLIAMS of P#79 Cabot Drive, Freeport, Grand Bahama, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23th day of January 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that INODY CATY of P.O Box CR56501 Gibbs Corner off East Street, Forbes Street, Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23th day of January 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Tuesday, January 23, 2024, PAGE 5

WATER CORP COULDN’T ‘BOLT ALL DOORS’ ON UNION CHIEF FROM PAGE B1 “Several months later, on August 8, 2019, Mr Rolle commenced the grievance process mechanism under Article 10 of the industrial agreement by filing a grievance memo to Water & Sewerage’s acting general manager, Robert Deal, relative to Water & Sewerage Corporation enforcing its policy on excess accrued vacation.”

At the grievance meeting five days’ later, it was pointed out that the water utility only allowed employees to accumulate a maximum of three years’ accrued vacation time.

Anything that exceeded this limit was to be refused unless vacation was delayed due to staff members having to respond to emergencies.

“It was further discussed that Mr Rolle was ordered to be placed on vacation effective December 17, 2018, for a period of 17 days, but he refused to follow management instructions and continued usual duties,” the Court of Appeal judgment noted.

“Additionally, by letter dated August 13, 2019, Mr Deal advised Mr Rolle that the excess vacation policy was clearly announced and he should proceed to stage three of the grievance procedure if desired.

“Mr Rolle was also advised that, pursuant to... the industrial agreement, his refusal to follow the manager’s instructions constituted a major breach of discipline and amounted to gross insubordination.

As a result of the insubordination, Mr Rolle was reprimanded.”

The former union president, following his

retirement, filed a trade dispute with the Ministry of Labour on September 2, 2021, over the Water & Sewerage Corporation’s alleged failure to pay him the vacation leave he was entitled to under the Employment Act. The utility, though, in its defence argued that what Mr Rolle was claiming would violate the three years’ accrued maximum vacation limit set in the industrial deal.

The Industrial Tribunal, in its verdict, found for Mr Rolle because the Water & Sewerage Corporation had “permitted” him to work for those 17 days when it was “open to them to refuse him access to its premises”.

It found: “To reprimand what you permit is not effective ‘management’. By no means should any employee be penalised by reason of management’s failure to effectively manage its own operations.” But, in its appeal, the state-owned utility argued that the Tribunal, having found it had a right to mandate vacation time, was mistake when it failed to find Mr Rolle had forfeited the 17 days claimed.

Dion Smith, the Water & Sewerage Corporation’s attorney, pointed out that the industrial agreement’s article 51.07 “creates a policy that employees would only be allowed to accumulate a maximum of three years vacation”. And, even though the industrial agreement had expired, this policy was still in effect.

Obie Ferguson KC, representing Mr Rolle, countered that this article was no longer valid because the industrial deal had expired. However, appeal

THE FTX Arena logo is seen where the Miami Heat basketball team plays, Nov. 12, 2022, in Miami. A federal appeals court on Friday, Jan. 19, 2024, has ordered the appointment of an independent examiner in the bankruptcy case of FTX amid concerns about widespread fraud preceding the collapse of the multibillion-dollar cryptocurrency exchange.

Photo:Marta Lavandier/AP

APPEALS COURT REVERSES JUDGE’S RULING, ORDERS APPOINTMENT OF INDEPENDENT EXAMINER IN FTX BANKRUPTCY

By RANDALL CHASE AP Business Writer A FEDERAL appeals court has ordered the appointment of an independent examiner in the bankruptcy case of FTX amid concerns about widespread fraud preceding the collapse of the multibillion-dollar cryptocurrency exchange.

A three-judge panel in Philadelphia issued the ruling Friday in an appeal filed by the U.S. bankruptcy trustee, who serves as a government watchdog in Chapter 11 reorganizations.

Lawyers for the trustee had argued that FTX's financial affairs and business operations, including allegations of unprecedented fraud leading to its collapse, should be reviewed by a disinterested person, not left to an internal investigation.

U.S. Bankruptcy Judge John Dorsey denied the trustee's request last February. He agreed with FTX and its official committee of unsecured creditors that an examiner's work would be too costly and would duplicate investigations already under way

by FTX's new leadership, the creditors committee and several federal agencies. Dorsey also expressed confidence in John Ray III, who was appointed by FTX co-founder Sam BankmanFried as the company's new CEO on the same day the company sought bankruptcy protection.

Bankman-Fried is awaiting sentencing in March after being convicted in November on wire-fraud

and conspiracy charges.

Several other former FTX executives have pleaded guilty to similar charges.

Prosecutors said BankmanFried siphoned billions of dollars from customer accounts at FTX into his cryptocurrency hedge fund, Alameda Research.

The appeals court reversed Dorsey's ruling, agreeing with the trustee that the bankruptcy code mandates the appointment of an examiner.

"Sometimes highly complex cases give rise to straightforward issues on appeal," Judge Luis Felipe Restrepo wrote for the panel. "Such is the case here."

Restrepo also noted that an examiner is required to make his or her findings public, whereas a debtor or creditors committee conducting an internal investigation has no such obligation.

"The collapse of FTX caused catastrophic losses for its worldwide investors but also raised implications for the evolving and volatile cryptocurrency industry," the judge wrote, noting that further scrutiny of FTX could alert potential investors to undisclosed credit risks in other cryptocurrency companies.

"In addition to providing much-needed elucidation, the investigation and examiner's report ensure that the bankruptcy court will have the opportunity to consider the greater public interest when approving the FTX Group's reorganization plan," he added.

justice Charles ruled: “It is palpable from article 51.07 that vacation in excess of three years will be forfeited unless the employee’s application for vacation leave has been refused because of the exigencies of the service.

“In my opinion, the vicepresident erred in law by finding that Mr Rolle had earned the benefit of vacation which could not be forfeited. In this case, Mr Rolle was mandated to go on vacation but he refused to do so. At no time did Water & Sewerage Corporation prevent him from doing so.

“In fact, he had done so on many previous occasions. There is no right to accumulate vacation and it is not the same thing as having worked overtime and the employer’s policy not to pay for overtime which is clearly a breach of the Employment Act.” Appeal justice Charles continued: “The simple facts of this case are, in December 2018, more than two years before Mr Rolle’s retirement date, Water & Sewerage Corporation through its acting general manager, Mr Deal, placed Mr Rolle on mandatory vacation since he had exceeded the three-year accumulation by 17 days.

“Mr Rolle refused to proceed on vacation and those days were forfeited in accordance with Article 51.07 of the industrial agreement. This cannot be stated to constitute ineffective management.... Mr Rolle was a senior manager at Water & Sewerage Corporation. He was told to proceed on mandatory vacation.

“He categorically refused to proceed on vacation and reported to work every day during the 17 days which were earmarked as mandatory vacation. In my opinion, Mr Deal acted as any effective manager could to prevent Mr Rolle from accumulating vacation leave,” she added.

“It would be unrealistic to expect him to police this mandatory instruction or to take other highly controversial and/or antagonistic step - for example, physically removing Mr Rolle from the premises and/or bolting all doors to prevent him from accessing his work station.

“In my judgment, the vice-president erred in law. The finding that the management of Water & Sewerage Corporation did not effectively manage its operations and employees is misconceived and unsupported by the evidence.”

Mr Rolle also sought to argue that, once the industrial agreement expired, his contract was governed by the Employment Act and its “better conditions.... came into effect” meaning he was entitled by law to vacation.

However, appeal justice Charles found: “The fact that the industrial agreement provides for accumulation of vacation up to three years is a greater benefit than is provided for in the Employment Act, which does not permit the accumulation of vacation and payment in lieu of taking the same.

“In my judgment, the vice-president, having found that the Employment Act is silent on the issue of accumulation of vacation, erred when she found that

Article 51.07 of the industrial agreement attempts to limit the accumulation of vacation which is contrary to the provisions in the Employment Act as it contravenes the provisions of section 4 of the Act. “As Water & Sewerage Corporation correctly pointed out, this finding is an error as it is the Employment Act which must not be construed as limiting or restricting any greater benefit.” Appeal justice Charles also found that Mr Rolle’s attempt to gain 17 extra days “ran afoul” of both the industrial agreement and Employment Act, and that it was the former that gave him “greater benefit”.

“In my judgment, there is no legal basis upon which Mr Rolle could assert that Water & Sewerage Corporation ought to pay him vacation pay for the 17 vacation days which he worked when he deliberately refused to proceed on vacation upon being mandated to do so,” she added.

“Additionally, Mr Rolle commenced the grievance procedure under the industrial agreement but then did a volte face and argued that the industrial agreement, having expired, was of no relevance and the Employment Act kicked in to govern his contract of employment.

“There is no statutory provision that permits an employee to ‘roll over’ his

vacation leave from one year to the next. As I see it, M Rolle’s better benefits were found in the expired industrial agreement, which he chose to distance himself from. On his own arguments, he was stuck between a rock and a hard place.”

Sir Michael Barnett, the Court of Appeal president, added: “An employee cannot refuse to take vacation. When an employer has directed an employee to take vacation, the employee must do so. If he refuses to do so, that in my judgment is an act of gross misconduct.

“The taking of vacation is not simply a benefit to the employee. It is also in the interest of the employer that an employee takes vacation. Vacation gives an employee rest and thus improves his productivity.

It also gives an employer an opportunity to audit an employee’s work while the employee is on vacation.....

“I am satisfied that an employee cannot claim a right to vacation pay for a vacation which he has simply refused to take, notwithstanding that he has been directed by the employer to take vacation.

To hold otherwise would severely undermine an employer’s right to determine when an employee would take his vacation.”

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PAGE 6, Tuesday, January 23, 2024

THE TRIBUNE

STOCK MARKET TODAY

Wall Street ticks higher and adds to its record high

By STAN CHOE AP Business Writer MOST stocks rose on Wall Street Monday to build on its all-time high reached last week.

The S&P 500 added 10.62 points, or 0.2%, to 4,850.43.

The Dow Jones Industrial Average topped 38,000 points after rising 138.01,

or 0.4%, to 38,001.81. The Nasdaq composite gained 49.32, or 0.3%, to 15,360.29.

Macy's climbed 3.6% after the retailer said it rejected a buyout offer from two investment companies, in part because it didn't offer "compelling value." SolarEdge Technologies rose 4% after it said it would cut 16% of

its workforce, and NuStar Energy jumped 18.2% after Sunoco said it would buy the pipeline and storage company in a deal valued at $7.3 billion, including debt.

They helped offset a 24.2% drop for Archer Daniels Midland, which put its chief financial officer on leave. After getting a document request from

U.S. regulators, it said it's investigating some of its accounting practices. ADM also said it expects to report profit for the full year of 2023 that's below what analysts were forecasting.

This upcoming week will have a rush of companies reporting their results for the last three months of 2023, with roughly 70 companies from the S&P 500 on the calendar. They include American Airlines, Intel, Procter & Gamble and Tesla.

Analysts are expecting companies in the S&P 500 to report an overall dip in earnings for the fourth quarter, down nearly 2% from a year earlier, according to FactSet. If they're right, it would be the fourth quarter in the last five where profits have fallen.

After the initial week of earnings reporting season, companies that have been topping analysts' forecasts for profits and revenue have been getting smaller bumps to their stock prices than usual, according to strategists at Bank of America.

Companies that fall short of expectations, meanwhile, have seen their stock prices get punished more than usual. It all points to "a higher bar after a big rally," Savita Subramanian and Ohsung Kwon wrote in a BofA Global Research report.

That big rally, which carried the S&P 500 to a record for the first time in two years, came largely on hopes that a cooldown in inflation will allow the Federal Reserve to cut interest

A STREET sign at the intersection of Wall Street and Broadway is shown on Friday, Jan. 19, 2024, in New York. Wall Street is rising Friday and may break past its all-time high set two years ago, before the highest inflation and interest rates in decades sent financial markets tanking worldwide.

Photo:Peter K. Afriyie/AP rates several times this year. It would be a sharp turnaround from the last two years, when the Fed jacked its main interest rate drastically higher in hopes of slowing the economy enough to grind down high inflation.

Some stronger-thanexpected reports on the economy recently have reinforced hopes that no recession is arriving, while also forcing traders to push out their forecasts for when the Fed will begin cutting rates. They overall see a less than 42% probability that it could begin in March, down from more than 80% a week ago, according to data from CME Group.

But the expectation is still for the Fed to cut rates more this year than the three times it's indicated.

Some upcoming reports on the economy could shift those expectations further.

On Thursday, the government will give its first estimate for how strongly the economy grew during the last three months of 2023.

Economists expect it to show the economy is still growing, but at a slower pace than during the summer. That's what the

Federal Reserve wants to see, because too strong of an economy would keep upward pressure on inflation.

On Friday, the government will release the latest reading for the inflation gauge that the Fed prefers to use. Economists expect it to show inflation held steady at 2.6% in December from a month earlier.

Treasury yields have eased significantly since October on expectations for coming rate cuts. That in turn has relaxed the pressure considerably on the stock market and helped it to rip higher. Yields dipped further on Monday.

The yield on the 10-year Treasury fell to 4.10% from 4.13% late Friday and from 5% in October.

The two-year Treasury yield, which tends to move more on expectations for action by the Fed, ticked up to 4.41% from 4.39%.

In stock markets abroad, indexes tumbled in China as worries continue about the strength of the recovery in the world's second-largest economy. Stocks fell 2.3% in Hong Kong to bring their loss for the young year to date to 12.2%. Stocks also tumbled 2.7% in Shanghai.

TWO United Airlines Boeing 737s are parked at the gate at the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Fla., on July 7, 2022. United Airlines said Monday, Jan. 22, 2024, it will lose money in the first three months of this year because of the grounding of its Boeing 737 Max 9 planes after a panel blew out of a Max jetliner this month. Photo:Wilfredo Lee/AP

United Airlines expects to lose money in the first quarter due to the grounding of Boeing Max 9 jets

By DAVID KOENIG AP Airlines Writer UNITED Airlines said Monday it will lose money in the first three months of this year as it deals with the grounding of its Boeing 737 Max 9 planes after a panel blew out of a Max jetliner this month.

United said it expects to lose between 35 cents and 85 cents per share in the first quarter.

The airline said, however, that it will recover to earn a full-year profit between $9 and $11 per share. Analysts were expecting $9.48 per share, according to FactSet. The Chicago-based airline based its forecasts on an assumption that the Max 9s will be grounded through the month of January, but not longer. Federal regulators have refused to put a timeline on letting the planes fly again, saying it will happen only when they believe the planes are safe.

United reported that despite higher revenue fourth-quarter profit fell 29%, to $600 million. The results were dragged down by a 28% increase in labor costs, partly reflecting a new union contract with pilots.

United and Alaska Airlines have canceled hundreds of flights since the Federal Aviation Administration grounded their Max 9 jets after a panel called a door plug blew off the side of an Alaska plane 16,000 feet (4,900 meters) above Oregon on Jan. 5. Investigators with the National Transportation Safety Board said they were examining whether bolts on

the panel were missing or broke off.

United has 79 Max 9s in its fleet, which numbers around 1,000 planes, not counting those used by regional affiliates.

Concern about door plugs on Boeing planes widened Monday, when the FAA recommended that airlines inspect the same panel on Boeing 737-900ERs, a predecessor to the Max 9.

The FAA said some airlines have inspected their 900ERs during maintenance "and have noted findings with bolts."

United has about 130 of the older planes. The airline said Monday inspections on the 900ERs should not interfere with its operations.

The airline's fourth-quarter profit compared with $843 million a year earlier.

The company said it earned $2 a share after adjusting for one-time items, which beat the $1.69 per share mean forecast of 16 analysts surveyed by FactSet. Revenue rose 10% to $13.63 billion, slightly better than analysts expected. Sales of premium seats and services did even better, jumping 16%.

For all of 2023, United earned $2.62 billion, more than tripling its 2022 profit of $737 million.

Airline officials were scheduled to discuss the results with analysts and reporters on Tuesday.

Shares of United Airlines Holdings Inc. fell 1% in regular trading, but rose 6% after more than two hours of extended trading following release of the financial results and forecasts.