Can anybody elaborate on "criminal investigation"?
Gulf Air CEO Dose resigns; chairman says carrier under 'criminal investigation'
Tuesday July 24, 2007
Gulf Air's board of directors yesterday accepted the resignation of CEO Andre Dose, effective immediately, ending the former Crossair and Swiss International Air Lines CEO's tenure less than four months after he joined the Bahrain-based carrier and unveiled a major restructuring program.
The sudden resignation came just days after Gulf Air Chairman Mahmood Hashim Al Kooheji confirmed that the airline is being investigated by Bahrain prosecutors. Speaking last week to Gulf Daily News, Kooheji said, "There is a criminal investigation from the public prosecutor and we have been advised not to make any comment or talk about the case." He added that he had told all airline employees, "Guys this is a public prosecution investigation; I want everybody to shut up."
It is not clear if the probe and Dose's resignation are related. The Gulf Air board gave no explanation for the CEO's departure, saying in a statement issued yesterday that "it has been mutually agreed" he would leave the company. It "thanked" Dose for "his assistance" and said the restructuring program he initiated would move forward. "The board is highly optimistic and trusts that the company will have a promising future, especially after the implementation of the company's network optimization and restructuring plan," the statement said.
Dose became Gulf Air's CEO in early April and later that month admitted the carrier was losing more than $1 million daily. He initiated an extensive restructuring that calls for a transition from a mixed fleet of 34 aircraft to an all-Airbus fleet comprising 28 aircraft focused mostly on serving the Middle East (ATWOnline, April 18). "We have tough times ahead of us," he said when he announced the program. "But we need these measures to ensure survival of the company."
The airline said the modernization was being funded by an $825 million infusion from its owners, the governments of Bahrain and Oman. However, Oman has signed a letter of intent to withdraw its holding later this year, leaving Bahrain as the sole owner.
In yesterday's statement, Gulf Air's board said it had developed and approved a plan that would "ensure transparency and adherence to the rules and regulations of the Kingdom of Bahrain." It added that the airline would be overseen by Bahrain Mumtalakat Holding Co., a government-controlled entity.