Gulf Air is considering a major revamp which could involve the Abu Dhabi Government acquiring a majority stake in the company, says a report in the Middle East Economic Digest (MEED).
The airline's board met late in November to discuss the carrier's future. Chief executive Majed Bin Saud al Rawahi is quoted as saying that one option is to increase the company's capital from $398 million to $663 million.
Citing unnamed sources, MEED says that the "most likely rescue" would see Abu Dhabi take effective control of Gulf Air, injecting new capital and buying out the stakes of Oman and Qatar, which recently formed national airlines of Oman Aviation and Qatar Airways.
Intense regional and international competition and economic downturn in the region were among factors, which caused a $150 million loss in 1995, although the carrier is now in profit.
Source: Flight International
