Airline

Gulf Air May Cut Loss Making Routes

The new chief of Bahrain’s Gulf Air said they may cut loss making routes and renegotiate aircraft orders to end their dependence on their sole shareholder, the Bahrain sovereign wealth fund – Mumtalakat.  Samer Majili, who last month left Royal Jordanian to become chief executive of Gulf Air, said all options were being considered as part of a wide review of the struggling company’s business plan. He said “Gulf Air is currently not sustainable and is receiving subsidies, which could otherwise be invested in other parts of the national economy.” 

Gulf Air has been trying to end several years of losses and stop the quick succession of chief executives since James Hogan left for Etihad Airways in 2006.  Gulf Air was initially created as a regional airline and their network has generally remained unchanged for several years. Abu Dhabi manager of Orient Travel commented “What they have lacked is focus.  You have to grow with the pace of the market.”
 

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