Bahamasair, the National Flag Carrier of the Bahamas came about as a result of the discontinuation of service by British Airways in 1970 and Pan American Airlines in 1973 due to the fuel crisis. These occurrences left an unacceptable void in the Bahamian transportation industry, and thus negatively impacted the tourism industry and the lives of persons living in the Family Islands.
The Bahamas relied very heavily on tourism, so Bahamasair was perceived to be part of the solution to the air transport problem, and as such was slated to provide essential transportation infrastructure and some insurance against the total disruption of the Tourism Industry. Thus in October 1970, Bahamasair was formed under the Companies Act as a wholly owned Government entity. The Bahamian people welcomed this.
