Gulf Air's Board of Directors has unanimously approved the airline's three-year strategic recovery plan. As a result, more than 90 million Bahraini dinars ($238 million) will be injected into the airline by its three owner states for 2003 and government debt will continue to be deferred.
“There are a number of pillars to the recovery plan including brand development, fleet re-construction, network, alliances and customer service – as well as others. There will of course also be a strong focus on profitability and improvements to cost structures,” said Gulf Air’s President and Chief Executive, James Hogan.
Hogan announced that work had already started in all these areas. Yield is a key to the profitability to any airline and a year-on-year trend in yield decline has been arrested. Efficiency and costs will also be tackled.
“Talks are underway with Boeing, Airbus, Embraer and Bombardier to discuss requirements for the next ten years. We aim to return to destinations previously served and introduce new ones – again all on a commercial basis,” added Hogan.
Gulf Air is also talking to a number of leading alliances including STAR and One World. A decision about joining one or the other can be expected in the first half of 2003.
Gulf Air was founded in 1950. It is owned by Bahrain, Abu Dhabi and Oman and is the only pan Gulf carrier in the region. The airline's network stretches from Europe to Asia and covers 43 cities in 32 countries. The fleet comprises 30 aircraft. The airline is in its first year of a three-year strategic recovery program, headed by Hogan. — (menareport.com)
© 2002 Mena Report (www.menareport.com )