🛫 Cayman Airways needs realistic budgeting, Auditor General reports

The Cayman Islands Government (CIG) provided Cayman Airways Limited with over $152.5 million in funding between 2018 and 2022, but the airline's expenses exceeded this amount each year. The Office of the Auditor General (OAG) has released a report indicating that the funding framework used to subsidise routes needs to be reviewed and the airline's performance against government goals needs to be improved. The report also revealed that the airline received nearly $24 million in supplementary appropriations due to a $34 million total loss resulting from unrealistic budgeting. 📉

The report, titled "The Efficiency and Effectiveness of Cayman Airways Limited", highlights that the airline plays a crucial role in the economy, providing an inter-island air bridge and being critical in the aftermath of natural disasters and for emergency repatriation flights. However, the report also criticises the airline for not effectively reporting its performance to parliament or the public, making it difficult to assess whether it provides value for money in relation to government subsidies. The report makes 14 recommendations, including changes to the airline's funding model, financial and non-financial performance, strategic direction, governance, workforce planning and management. 📑

While the airline is used by the CIG to support its national priorities for domestic air services and to destinations it identifies as key to attracting visitors and economic development, the report found that the airline made losses in three of the four categories of the Airlift Framework, which specifies route categories. The report also notes that the airline does not usually receive the funding it requests as part of the budgeting process and often receives supplementary appropriations. Auditor General Sue Winspear urged the government and the airline to urgently revise the Airlift Framework to clarify what the government's funding is intended to cover. 🛬