Gulf Air will launch the Middle East's first dedicated leisure airline in June as part of a three-year restructuring unveiled by chief executive James Hogan last month.
The airline's nine Boeing 767-300ERs will be transferred to the new unit, which will "operate as part of the Gulf Air family but under a new brand", says Hogan. He adds that the new arm will be a full service, all-economy airline aimed at the leisure and expatriate employment sectors. It will be modelled on Australian Airlines, the leisure carrier launched last year in Asia by Qantas.
The 767s are to be equipped with a one-class, all-economy cabin for the new operation, which will operate from a base in Abu Dhabi, following the relocation of crews from Bahrain.
Gulf Air, which has debts estimated at $800 million, hopes to return to profitability by 2004 - a target likely to be affected by any outbreak of hostilities in Iraq.
The airline is evaluating five new destinations in June as part of its restructuring plan - Alexandria, Egypt; Athens, Greece; Johannesburg, South Africa; Salalah, Oman; and Sydney, Australia. Additional destinations in Africa, the Americas and Asia are being considered.
Frequencies from three Gulf hubs - Abu Dhabi, Bahrain and Muscat, Oman - are to increase by 40% over the next three years.
Source: Flight International
