MPs have demanded that the current board of the country’s national carrier, Gulf Air, be replaced with a new one in a bid to restore its fortunes.
It is among 14 recommendations submitted by a parliamentary panel following a probe into Gulf Air affairs.
The committee was headed by Parliament first vice-chairman Abdulnabi Salman and the probe report is scheduled for debate in Tuesday’s session.
According to statistics provided to the committee, Gulf Air had suffered losses amounting to BD77 million in 2021, BD91.9m in 2020 and BD38m in 2019. The airline’s worst-ever loss was, however, in 2012 when it reached an unprecedented BD200m.
The probe panel has recommended that Gulf Air be given two years’ time to come up with a recovery and fiscal balancing plan.
The new board will be tasked to hire qualified Bahrainis to fill up administrative and managerial jobs currently occupied by expatriates. Progress made on the financial and administrative fronts will have to be presented to Parliament immediately following elections later this year.
Amongst other recommendations, a probe has been urged into officials who have ‘caused the airline to face losses’ - either through unprofitable destinations or routes or illogical operations or contractual agreements.
Action has also been sought against officials accused of taking ‘unfair decisions’ against employees.
Other recommendations include:
l Having a responsible minister for Gulf Air.
l A commitment by the airline to replace expatriate employees with Bahrainis within a set timeframe.
l To reduce losses in the fastest time possible, while rescheduling loans taken to ensure operations don’t face further setbacks.
The probe committee has also presented two futuristic recommendations, which are:
l Allowing the private sector to invest and buy shares in Gulf Air while partnering with its management.
l Studying the formation of a new economy airline company for passengers and cargo under Gulf Air, in partnership with the private sector.
Gulf Air’s management has admitted that its financial performance has been weak, while acknowledging that government’s bailouts and project support throughout the years had helped it move ahead.
However, the probe has found that the airline’s position and brand name were not at threat, considering that it is backed by the new Bahrain International Airport, new fleet, quality services, a stronghold business in the region, and a satisfactory Bahrainisation rate.
There are 2,465 employees currently under Gulf Air’s payroll, of which 1,602 are Bahrainis (65pc Bahrainisation).
There are currently 480 Gulf Air Trade Union members. However, unionists have claimed that no pay rises were given during the past two decades, despite demands. The probe has highlighted multiple violations commited by the airline within its facilities – including lack of first aid kits, unclean toilets, absence of contingency or emergency plans, health and safety mechanisms, procedures and policies.
Present during questioning were Transportation and Telecommunications Minister Kamal Ahmed, who is politically responsbile for Mumtalakat, and Industry, Commerce and Tourism Minister Zayed Alzayani, who is Gulf Air board chairman, and Gulf Air’s senior management.
They will be present during Parliament’s session on Tuesday.
mohammed@gdn.com.bh
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