Airliners-India.com

sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

Gulf Air Vice Chairman Mahmud Al Khoeji confirmed that Baharaini government plans to eventually raise its stake in the carrier to 100% from the current 80% in this financial year. Currently the Omani government holds 20% stake in the carrier.

Source CAPA.

victor2alpha · Member Joined: 08 Apr 2007 Posts: 120

Nimish

sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

Gulf Air announced plans to implement a comprehensive restructuring plan to stem losses, with full details to be released next week (Maktoob Business, 10-Apr-07). Initial details of the plan include:

Reduction of fleet from 34 to 28 aircraft;
Simplification to an all-Airbus fleet;
Retiming network operations to reduce ground and connection times;
Restructuring internal organisation to four divisions (Sales and Marketing, Operations, Finance and Administration, Network).
Gulf Air: “At present Gulf Air is heavily losing money every day. This has to stop. The shareholders have guaranteed a capital injection to cover past costs, fund the restructuring process and invest in future operational improvements. But they expect us to make sure that this money is wisely spent and that it will help secure a sustainable basis for a strong Gulf Air,” Andre Dose, CEO. Source: Maktoob Business, 10-Apr-07.

sri_bom

victor2alpha · Member Joined: 08 Apr 2007 Posts: 120

sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

Gulf Air forecasts a FY07 loss of USD675 million and announced the following details of its USD825 million restructuring plan, termed its ‘Get Well Programme’ (Trade Arabia New Service, 17-Apr-07):

Phase I (Operational Restructuring):
Cost: USD319 million;
Fleet:
Simplification to all-Airbus fleet;
Reduction from 34 to 28 aircraft;
Phasing out of Gulf Traveller brand and nine B767s;
Acquisition of four A321s in 2008;
Partial replacement of A340 fleet with up to eight A330 aircraft from 2010;
Network: Termination of loss makin Dublin, Hong Kong, Jakarta, Johannesburg, Sydney and Singapore routes, in favour of Gulf and Middle Eastern destinations;
Staff: Reportedly considering job cuts of up to 1,500 workers.
Phase II (Quality Improvements);
Cost: USD505 million;
Fleet: Refurbishment of all aircraft cabins;
Ground services: Upgrades to airport lounges.
Gulf Air: “These changes are unavoidable. We need to create an airline that serves the best interests of its owners, the Kingdom of Bahrain and the Sultanate of Oman. This is why we have decided to fund it with a major capital injection and give it our full support,” Mahmood Al Kooheji, Chairman. Source: Manama, 17-Apr-07.

Sri_Bom

sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

Bahrain Government confirmed plans to acquire a 100% shareholding in Gulf Air and will privatise the carrier “as soon as possible”, following the implementation of its restructuring plan (Manama, 02-May-07).

Bahrain Government: "We are currently working to get an 80% share of the company, with the possibility of owning it all, through our national holding company [Mumtalakat], so we can take proper decisions to implement our comprehensive strategic plans. Whenever they are achieved, we will work to privatise the company as soon as possible, in line with our plans for economically-worthy sectors," Shaikh Ahmed bin Mohammed Al Khalifa, Finance Minister. Source: Manama, 02-May-07.

Sri_Bom