Gulf Air, Bahrain’s national carrier with an estimated loss of $510 million for 2009, has announced the implementation of a three-year growth strategy aimed at bringing the airline back to profitability by 2012.
Following an initial three-month structural review, the carrier has announced its strategy to turn the company into a commercially sustainable business in 2012. Gulf Air Chairman Talal Al Zain says the new strategy will be a ‘bitter pill’ to swallow, but will help in building a sustainable and dynamic national airline.
“We have come to a stage where we have two choices i.e. either close the airline or implement a new strategy to turn this carrier into a viable business model. We have decided to implement the new growth strategy,” he said.
Al Zain, also chief executive of Mumtalakat Holding, the sovereign fund of Bahrain, which owns 100 percent Gulf Air, said he wouldn’t allow drain of funds anymore by pumping money into Gulf Air as this would be a clear violation of the Mumtalakat mandate.
The management has a clear mandate to build an efficient, commercially sustainable and dynamic airline that effectively serves the people and the economy of Bahrain and represents the Kingdom on the world stage, he added.