Gunter Endres/LONDON
THE NEW HEAD of Gulf Air, Sheikh Ahmed bin Saif al-Nahyan, has reacted swiftly to the severity of the airline's $159 million loss in 1995 by convening an extraordinary shareholders' meeting to seek agreement on measures designed to bring the multi-national carrier back to profitability.
Nahyan blames the poor result, which followed four consecutive years of profit, on several factors, including the economic slump in the Gulf Co-operation Council states, and intensified competition from new local airlines and foreign carriers. Nahyan is believed to be investigating how the carrier made such heavy losses inside 12 months.
Immediate rescue action being taken includes the disposal of two Airbus A340s and two Boeing 767s, with the other two A340s and four more 767s under serious threat. Delivery of four Airbus A320s, due to join the fleet in the middle of this year, is to be deferred for up to three years. The axe is also falling on unprofitable routes, starting with Kilimanjaro, Manchester and Cebu, with more to come.
Part of the profitability drive involves the re-introduction of three Lockheed L-1011 TriStars and the acceleration of a plan to replace ex-patriate pilots with local staff. It is understood that there will be no more expatriate commands and contracts will not be renewed.
While Dubai's Emirates Airline remains a thorn in Gulf Air's side, potentially greater threats are posed by Qatar Airways and the lesser-known Oman Air, which is quietly building up its expertise to assume the mantle of Oman's flag carrier. Starting with an Airbus A320, Oman Air is now projecting a fleet of Boeing 757s within one to two years.
Qatar Airways is beginning to assert its independence. In response to the Government's recent instruction that all expatriate labour, from Bangladesh, India and Pakistan, for example, is to fly on Qatar Airways in preference to Gulf Air, chief executive Hamad Ali Jabor Al-Thani announced plans to acquire six more Boeing 747s over the next 18 months.
Concerns over an imminent break-up of the four-nation airline appear premature, however. With Abu Dhabi, through Sheikh Nahyan, in the chair for the next three years, plans by the biggest United Arab Emirate to start its own airline would appear to be shelved for the time being.
Source: Flight International
