Gulf Air will slash its flights by 15 percent worldwide from Monday, following a slump in business in the wake of the US terrorist attacks, reported the Manama-based Gulf Daily News.
It is also shedding staff through voluntary early retirement and an alternative "voluntary severance package."
More than 70 senior staff have already agreed to a 5 percent voluntary pay cut, as the airline faces "unprecedented difficulties."
The airline suspended flights indefinitely to Peshawar, Pakistan, on September 19, as a "commercial and precautionary measure."
It has suspended services to two points in the Gulf, which sources last night confirmed were Fujairah and Ras Al Khaimah in the UAE.
They were suspended earlier this week, involving the loss of six flights a week.
"Further timetable changes will become effective on October 1, with an overall reduction of 15pc system wide," said a Gulf Air statement, cited by the paper.
"Gulf Air regrets taking this action and the resulting inconvenience to some of our passengers, but we have been forced to for commercial reasons and to safeguard the long term health of the airline."
The airline is still aiming to get back into profit by 2003 and is re-examining its short and long-term strategic planning, covering areas such as route structures, schedules, fleet, engineering and finance and other factors, said the statement.
"As part of a determined program of rationalization, the airline will continue to look at ways to reduce costs," it said.
"We are encouraging more employees to take advantage of the airline's early retirement package, which was developed in 1996 and is now being re-launched.
"The program provides support for long-serving employees of the four owner states wishing to retire early with the security of a salary and benefits package, after approval of the company.
"Those who agree voluntarily to the package have no restrictions on working for other companies and receive many of the benefits afforded to current Gulf Air employees.
"For those not eligible for this scheme, an alternative voluntary severance package is available with compensation based on length of service."
Meanwhile, Gulf Air is resuming a "limited service" to Colombo, Sri Lanka on Saturday, it announced earlier Wednesday.
It will initially operate four weekly round-trip flights between the Gulf and Colombo.
Two of the outbound flights will originate from Bahrain, one from Abu Dhabi and one from Dubai.
The airline was one of six Gulf-based carriers, which suspended services to Sri Lanka on September 18, due to a rise in the cost of insuring aircraft and their passengers.
Gulf Air commercial and customer services vice-president Adel Ali yesterday thanked the Sri Lankan government for its efforts in bringing about a significant reduction in the insurance rate.
"We are pleased to announce the resumption of flights to Colombo and are grateful to all parties involved in resolving the issue," he remarked.
"We would also like to again apologize to all of our passengers who were inconvenienced by the service disruptions."
Gulf Air is the second regional carrier to re-start its service – Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)
