Gulf Air back in the guano
The funniest item in here? The MP saying "It appears to me that the days of expatriates running Gulf Air are possibly over.". And that, my friend, is why the days of Gulf Air will shortly be over, unless the owners are going to continue to keep feeding the circling Gulf Air sharks that have been feeding off it for years.....or actually do something about them. Who in their right minds would appoint the complete numpty who is in the CE chair right now?
Gulf Air in crisis
By MARK SUMMERS
GULF Air president and chief executive Andre Dose's resignation and the crisis talks which followed, stunned airline staff and industry observers last night.
It came within hours of the Swiss aviation veteran issuing a statement dismissing reports that he was embroiled in clashes with the board - and declaring that he would be staying on to steer the airline to success.
"Over the weekend, there have been newspaper articles about me and the Gulf Air management in the Arabic Press. I want you to know that I am aware of what has been written and that I am intentionally not responding to the various stories," he said in the statement, which also went out via email to staff.
"We have made great progress over the past three months, including a substantial improvement in punctuality and the successful introduction of a customer friendly schedule.
"Going forward, I will continue working for what is best for Gulf Air."
But Mr Dose also said he would be meeting Gulf Air chairman Mahmood Kooheji later in the day to "discuss the issues" and it is at that meeting that he is understood to have submitted his resignation.
Talks
Mr Kooheji, Mr Dose and other board members and management officials were locked in talks until 11pm last night but were unable to reach agreement.
Sources said Mr Dose's resignation stood, pending further talks today.
The crunch came days after Gulf Air confirmed that it was helping with police inquiries following the arrest and questioning of a senior airline official.
Mr Kooheji told the GDN last week the airline was co-operating with a criminal investigation, apparently into suspected financial irregularities.
In-flight services head Michael Kent was arrested on July 12 and released 24 hours later, after being questioned by the Public Prosecution.
He has still not been charged but has been banned from leaving the country, while inquiries continue, said sources.
Investigators from UK-based forensic auditing specialists Kroll are also understood to be going through Gulf Air's books with a "fine toothcomb".
Mr Kooheji confirmed that a police inquiry was underway, but would not give details, saying that all staff had been ordered to say nothing.
Mr Kent was arrested at his office as he prepared to attend a leaving party in his honour ahead of his pending departure for his native Australia, having already resigned.
He had been at Gulf Air since 2002.
Mr Kent told the GDN earlier that he and his team were innocent of any wrong-doing.
"I know without question that I and my team are completely innocent of these accusations," he said.
It is understood that police raided Mr Kent's flat and took away property including a computer, as part of investigation centring on investigations into in-flight supply contracts, such as catering.
Two months ago Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa told MPs that officials were going through the airline's books with a fine toothcomb.
"National company Mumtalakat officials are currently studying every paper and if any violation is found, then those involved will be summoned to the Public Prosecution," he said at the time.
Mr Dose's resignation came just four months after he joined the airline.
Plans
In April shortly after his arrival, he unveiled a BD310 million 'Making Gulf Air Well' plan designed to stem losses of over $1m (BD378,000) a day.
"We can do it," Mr Dose declared then, as the airline embarked on a major restructuring programme including significant staff cuts and the axing of several long-haul routes.
If he stands by his resignation today Gulf Air - which he described as being in a 'drastic' state upon his arrival - will have lost two chief executives in less than a year.
Australian predecessor James Hogan left the airline after four years, in October last year.
Mr Dose had reportedly clashed with the Gulf Air board over the formation of two committees he felt would interfere with his decision-making as chief executive.
It is understood he objected to an executive committee and an audit and accounting committee on the basis they infringed on his authority.
Sources also said he was unhappy with the handling of the Kroll investigation.
Well-placed senior staff said the crisis came at a critical time for the airline, but that even if Mr Dose did go, it still had people in place capable of reviving its fortunes.
"The staff can run the show - we have experienced people," they said.
"The Bahraini locals are capable of running the show - the chief executive of Air Arabia is an ex-Gulf Air employee.
"Mr Kooheji and his group, I am sure, know Bahrainis can run the show. I don't think Gulf Air will be lost. It will survive as long as there is government support."
Al Wefaq MP Dr Jasim Husain, a member of the parliament's finance and economics committee, which cross-examined the Gulf Air board at a meeting earlier this month, said he was stunned by the crisis.
"It is a major adverse development and I am shocked by it," he said.
"This is the last thing the company was in need of really. It is certainly bad news for the company, especially in the summer time, which is the bulk of the business.
"It appears to me that the days of expatriates running Gulf Air are possibly over.
"We knew Mr Dose wanted some sort of freedom to do his job, but apparently the board was not prepared to allow this. That is a very major development.
"It just shows the divisions have been between the board and Mr Dose. I always had the belief that he would continue for some time.
"What matters now is not individual people - it is the company. It's about where the company will go from now.
"We hope the company will be able to overcome this development."
The crisis is another hammer-blow for a carrier already crippled by heavy losses - a crisis Mr Dose had pledged to correct.
"Gulf Air generated losses in 2006 of BD130m - the company is bleeding," he said at a Press conference held at the Muharraq headquarters in April, to herald his arrival.
"We have to stop the losses, our shareholders will not tolerate it if the company bleeds for another 12 months the way it is bleeding now.
"Immediate measures are needed to turn it around, the measures will be profound and in places they will be unfortunately painful.
"The management is fully committed to do whatever is needed to stop the bleeding and make it profitable again."
Those "profound" measures included the transition to an all-Airbus fleet, a reduction in the airline's aircraft numbers from 34 to 28 and job cuts designed to shed roughly a quarter of Gulf Air's then 6,000-strong staff.
On July 1 the airline implemented a new 'wave' schedule designed to group departures and arrivals from Bahrain International Airport together, in order to cut transit times.
Optimism
When Mr Dose arrived at Gulf Air, he declared his intent to take a "very aggressive" approach to arresting its losses "in a very short period of time".
He told the media he was confident the rescue operation would succeed where others had failed.
"I am here to stop losses, together with my team and we have very good experience," he said.
"We are not just Sunday afternoon airline managers - people on my team have been in very critical situations.
"They have experience in solving problems and making companies work again when things were critical. I am not new to this, I have done this several times.
"Such a clear programme and such speed have never been seen in the company.
"We shall not accept failure - there is only one way forward, we have to succeed."
Neither Mr Kooheji nor Mr Dose were available for comment last night.
Mr Dose's No.2, chief operating officer Bjorn Naf, was in his native Switzerland last night and told the GDN he had heard nothing about the crisis.