GULF AIR SAYS that route cuts and rationalisation of its fleet have put it back on course for an early return to profitability, but warns that further cuts are in the pipeline. The airline had revealed that it lost $159 million in 1995 (Flight International, 3-9 April).
Outlining its revised operational strategy, Gulf Air president and chief executive, Shaikh Ahmed bin Saif Al Nahyan, confirms that the carrier will pull out of unprofitable and non-strategic routes, and focus on improving the performance of profitable services. It has already ceased flying to Cebu, Kilimanjaro and Manchester.
"Other routes are under stringent review and any further rationalisation will be finished by October this year, the start of our winter schedule," says Ahmed. "Rationalisation of the network inevitably leads to excess fleet capacity and we have already taken action to negate this," he adds.
Two of Gulf Air's 18 Boeing 767-300ERs have been leased out, to Polish carrier LOT and Ethiopian Airlines, while seven have been reconfigured with 237 seats (up from 200) for use on higher-density routes.
It is operating 14 Airbus A320s, but has deferred delivery of the four remaining on order, two of which had been due for delivery this year. One of its five A340-300s is leased to EgyptAir. The airline has not announced any other changes to its order backlog, which includes one A340-300 due in mid-1996, and six A330-300s due from 1998.
Source: Flight International
