GULF Air Group Holding Company appears to have flown out of a financial abyss by remarkably reducing its losses by around 200 per cent in four years.
Transportation and Telecommunications Minister Mohammed Al Kaabi, who is politically responsible for Bahrain’s sovereign wealth fund Bahrain Mumtalakat Holding Company, told MPs during their weekly session yesterday that the national carrier was on a flight path to success.
And, ongoing changes within the group, which features the airline, alongside Bahrain Airport Company and Gulf Aviation Academy, will witness a further reduction of operational costs as part of comprehensive restructure, integration and acquisition plans.
The minister wanted to correct a misconception about the size of Gulf Air’s financial woes. “The national carrier had reduced its losses to BD30 million by the end of last year compared to between BD170m to BD180m in 2020,” said Mr Al Kaabi.
“This has significantly reflected on the group with losses dropping in general by 203pc from where it was at that time and we are working on further reductions.
“Mumtalakat doesn’t give a single dinar to Gulf Air, which now operates as part of a comprehensive group.
“Other carriers in the region also record a loss and make up for shortfalls from other aviation activities associated with the airlines. Here we are doing the same as part of a clear strategy that involves bringing all related business to the group through integration, reducing operational costs, restructuring and acquisitions.”
He stressed that 5.8m passengers last year boarded Gulf Air, which is around 67pc of the 8.7m passengers that travelled through Bahrain International Airport.
“We have more than 1,700 Bahrainis working for the national carrier, but we also choose to employ expatriates due to the nature of multi-national passengers, as this blend of workforce helps open international markets for Bahrain.
“Destinations are under continuous review to decide the most financially-feasible. Gulf Air has a limited fleet and our destinations are selected on profitability.”
The minister was commenting on MPs’ queries during an open debate on companies under the Mumtalakat umbrella they suggest incur losses that need to be addressed. The debate took place following a request by 10 MPs led by Strategic Thinking Bloc president Ahmed Al Salloom.
MPs suggest reinstating potentially highly profitable destinations, such as flights to Iraq, Iran and Syria, which would boost the national airline’s bank balance.
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