Surinam Airways to Be Privatized

During the budget debate in the National Assembly of Suriname a few weeks ago, it was revealed that state-owned Surinam Airways (SLM), which has been losing money for decades, will be privatized within the next two to three years.

This unexpected announcement caught many by surprise in parliament but it was evident that the government has no road map to privatization from what transpired in parliament. The government has yet to lay out a privatization plan with specific goals and criteria

Parliamentarians accused the government of repetitive promises of privatizing the airline. They also hammered the government for information on the performances of state-owned companies, many which are unprofitable, running at a loss and being subsidized by the government.

The lack of transparency is at the center of an ongoing discussing in Suriname today amid an economic recession. This has led to many cuts in government spending and the urgency to private unprofitable state-owned companies like SLM and Telesur.

The government of Suriname has practiced a policy of protectionism to insulate SLM from competition, at the expense of attracting more airlines and offering competitive airfares for Surinamese citizens.

This is evident when Mr. Brunings, advisor to the president on aviation, back in 2013 accused SLM board members of putting the company’s interests above the country’s.

“The government’s policy is to end Suriname’s isolation by allowing as many airlines as possible to fly as frequently as possible,' Brunings said.

He asserted that Surinam Airways is not just the center of its aviation policies, but a stakeholder.

“The impression is created that the majority of the board decides in important matters, but that is not the case. It is the Surinam Airway's owner who decides, and that is the government,” Brunings said.

Suriname is now looking to change this.

Brunings said, “Policy has always been focused on protecting the airline, and maintaining the small market of flights to and from the Netherlands.”

Meanwhile on Monday, in a major development, Ewald Henshuys, the director of SLM, and the entire board members were fired by President Desire Bouterse for "many blunders, including the purchase of the latest Airbus 340 aircraft."

According to Bouterse, a special team to run SLM and the Airbus 340 will be created.
SLM has a history of having an inflated staff, a practice of nepotism, a lack of a vision and poor management that is always government appointees. Insiders say that the airline for decades has been dishing out generous perks to its employee, their friends and families. Now, due to a financial crunch, the government may finally be willing to give up its hold on SLM.

Henry MacDonald, Suriname's former ambassador to the United Nations, wants his country to develop sustainable eco-tourism.

MacDonald said, "Suriname's economy is small, with a miniscule multi ethnic and religious population, consisting of various unique features with a European twist such as its official language Dutch that makes it interesting to curious adventurous and nature loving tourists. The history, cultures, languages, food, environment, friendliness, safety and traditions of Suriname, the smallest independent country of South America, are unique to the American continent and thus to the world."

If developed, Suriname can offer a unique eco-tourism product. The government has finally embraced the tourism industry. Now there are talks with SLM to develop the tourism industry. The emphasis is now on sustainable eco-tourism that is small scale, stresses local ownership, is environmentally friendly and sustains the well-being of local people. However, after many years of "talking", there is yet no tourism policy, a tourist board, nor legislation to govern the industry.

Suriname is still stalling in concluding aviation agreements with Turkey, Ghana and the United Arab Emirates. While the country has been attracting investments from the UAE, it lacks an embassy in the Persian Gulf/ North East Africa region. Suriname would rather open an embassy in Equatorial Guinea, critics claimed.

One Surinamese parliamentarian said that SLM should seek a reputable international partner like Emirates, Qatar, Etihad or Turkish Airlines that can inject capital and expert skills to turn the airline around. Suriname, the parliamentarian said, can serve as a hub between North America, the Caribbean, Africa and South America. Such a move, and the expansion of the airport, can actually see the realization of the tourism industry of Suriname.

Source: Caribbean News Now