SR Technics is warning that the loss of its full-support maintenance contract with Gulf Air will lead a substantial revenue drop, with possible repercussions in Bahrain, Dublin and Zurich.
Gulf Air formally notified SR Technics of its plans to terminate its integrated airline services agreement at the end of last month. SR Technics says the deal carries a six-month notice period, meaning that the business will be lost from the end of June.
SR Technics says: "Losing the Gulf Air agreement will mean a substantial loss in our revenues, but does not threaten our company's survival."
The maintenance-provider says the fall-out will be felt at its Bahrain operation, which it developed specifically for Gulf Air, but it warns that the biggest impact will be felt in Dublin and Zurich.
It is investigating the likely repercussions on these sites and has launched an internal task force to "come up with respective mitigation scenarios."
Despite the notification, SR Technics is not ruling out further collaboration with Gulf Air. It adds: "We are currently looking at the legality of the notice Gulf Air has issued and our findings and conclusions here could affect the final termination date."
Source: Air Transport Intelligence news
