BAHRAIN’S national carrier, Gulf Air, is facing a tough year in 2010 as it implements changes to stave off rising debts.
Late last year recently appointed CEO Samer Majali said: “Gulf Air is currently generating unprecedented losses and requires an immediate redirection of its strategy.”
Majali, who took over the reins in August having previously been at Royal Jordanian, continued: “We are currently expected to record an operating loss of BD193 million in 2009 – 28 per cent of the kingdom’s deficit.”
Both he and Talal Al Zain, the company’s chairman, said it was a case of change or close.
They announced a comprehensive restructure which aims to get the airline back into the black by 2012.
Some routes were closed but there are plans to expand operations with more than 20 new destinations in the Middle East, Africa, Asia and Europe.
Gulf Air is also improving its fleet to make less use of wide-bodied aircraft. It already has 15 narrow-bodied A320s on order and says the restructure will increase the need for these more economic vessels.
Alongside adjustments to planes and routes the recovery plan calls for bringing the size of the workforce into line with industry norms, adopting a performance-based culture of diligence and efficiency and streamlining internal processes.