The Board of Directors of Gulf Air has approved a new restructuring plan aimed at significantly reducing company losses over the next few years.
President and Chief Executive, André Dosé said the Board unanimously endorsed the plan which will involve some tough new measures including cost cutting across the entire company, streamlining the structure of the organisation and making network operations more efficient.
“We have the full support of the board for all the measures that have been proposed in order to secure Gulf Air’s future,” he said. “All our actions will be focused on the four key issues Safety, Punctuality, Customer Service and Profitability. To turn our operations around we need a real cultural shift inside our organisation. To achieve this we will be guided by the principles of teamwork, self-initiative on all levels of the organisation, reward, openness and simple processes!
“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.”
To improve the profitability of the company Gulf Air will reduce its fleet from 34 to 28 aircraft and one single manufacturer (Airbus). At the same time network operations will be improved by reducing ground-time of the aircraft and limiting connection times for the passengers.
To cope with these tasks Gulf Air’s organisation will be streamlined and simplified. The new organisational structure comprises four divisions, each headed by an Executive Vice President: Sales and Marketing Lee Shave, Operations Bjorn Naef, Finance and Administration Ismail Karimi and Network Hashim Mahmood (acting).
“We believe these measures are in the best interest of the people and economy of the Kingdom Bahrain as well as those of our other shareholders. With the support of everyone involved, we will get Gulf Air back on a firm financial footing and make it an airline that is loved by its customers,” said Mr Dosé.
Details of the restructuring plan will be presented next week.
About Gulf Air
Founded in 1950, Gulf Air, owned by the Kingdom of Bahrain and the Sultanate of Oman, is the only truly Pan Gulf carrier in the Middle East region.
The regional, geographic and cultural values that the airline has embraced over more than half a century are still central to defining its brand and service ethos.
Today the airline’s network stretches from Europe to Asia and covers 50 cities in 30 countries. The fleet comprises 34 aircraft and has the distinct advantage of possessing the strongest network across the Middle East.
A platform for sustained commercial operation has been established over the past three years as part of a multi-phased turnaround programme. It has also provided a framework for a succession of innovative products and services including the unique Sky Chefs and Sky Nannies that form part of Gulf Air’s ’smart airline, successful business’ vision.
International recognition has been achieved as a result of the turnaround programme leading to numerous awards for the airline’s innovative and high quality products and services: These include:
• Best Onboard Catering in First and Business Class (Skytrax World Airline Catering Awards 2005)
• Best designed in-flight magazine (American Creativity Awards,2005)
• Middle East Leading First Class Airline (World Travel Awards 2005)
• World’s Leading Airport Lounge (World Travel Awards 2005)
• Middle East & North African Platinum Best Airline (MENA Travel Awards 2004
• Most Improved Airline (Skytrax Awards 2004)
• Middle East First Class Airline (Arabian Business Awards)
• Best new product launch for in-flight services (PAX international Readership Awards)
• Best First Class Onboard Food (Skytrax Food Category 2004)
• Best Business Class Check-in (Skytrax Check-in Category 2004)
• Middle East region’s best airport restaurant for its restaurant in Bahrain International Airport lounge (PAX International Readership Awards 2005)
