Why would GF have to downsize - other than a lack if will/money from the Bahrain gov't!!!!????????
Redeploy the fleet to prfitable routes. (In fact they could still serve MCT, as a stop, enroute to the destinations they currently fly). If GF wants to be a niche player that's fine but they have to have a route network that will attract and keep pax - especially the high paying biz and first class traffic. That means adding at least 2 Chinese destinations and additional European routes (lots of choice - Amsterdam, Munich, Manchester, Milan, Copenhagen etc etc etc). IntraGulf is busy and they dropped good routes like Columbo and Casablanca (so that the competition could take them
) Some African routes are also busy.
I think GF could do with a fleet of 50 aircraft and do well. Hell, I think upwards of 60-70 could be done - deploying into enough markets to be a key niche player. Let the others expand to 200 a/c.
PS. How about code sharing with Air Lingus out of Dublin - some connect to New York with AL and GF could continue to Toronto. With the cross atlantic demand at a peak and a lack of seats.....................