Gulf Air unveiled at November's Dubai air show a new strategy that calls for a fleet renewal, inflight upgrade and expansion for its Bahrain hub.
The carrier believes its "Way Forward" strategy will stabilise its business after a tumultuous period battling losses and changes to its ownership structure which has resulted in the Bahrain government holding a 100% stake.
Gulf Air embarked on a turnaround programme in April, after revealing the operation was losing around $1 million a day. "I think we have reached stability. We have reduced our losses by 30% and we can see the trend is continuing," says chairman Mahmood Al Kooheji.
Acting chief executive Bjorn Naf says growth and investment is central to Gulf Air's new long-term strategy. The board has approved the purchase of 35 aircraft to replace its entire fleet and Naf says the carrier could be operating 45 to 50 aircraft by 2013. He says replacing its fleet and upgrading its in-flight product are key in its effort to "catch up" with other major players in the Gulf region.
"We are focused very much on the Bahrain hub. We are aligning our growth strategy to the kingdom of Bahrain," Naf says. "We have one owner, one shareholder and it gives us a clear vision."
Kooheji says the government will look at an initial public offering for the carrier but adds the airline must first complete its turnaround.
Source: Airline Business
