Gulf Air moves to stem staff resignations
The Arabian Business On Line (by Safura Rahimi) reported the following yesterday, Thursday, 23 August 2007:
Gulf Air is to offer its cockpit and cabin crew significant pay rises in a bid to stem the number of employees quitting the troubled airline.
Bahrain's national carrier on Wednesday approved a new compensation package, which the company said met market standards, without going into further detail.
However, sources at the airline said it was offering a pay rise of up to 50% for flight attendants, up to 90% for senior flight attendants, up 70% for first officers, up to 50% for pilots, reported Bahraini newspaper Gulf News Daily.
Earlier this month, flight attendants handed a 500-signature petition demanding a 30% pay rise and increased allowances.
With the new packages, a captain's a basic monthly salary now stands at 3,000 Bahraini dinars ($8,000), a first officer's at 2,100 dinars ($5,600), a cabin service manager's at 600 dinars ($1,600), and a flight attendant's at 340 dinars ($900), sources confirmed to ArabianBusinesss.com.
The improved wage offering follows the resignation of up to 150 of Gulf Air's pilots and first officers since April, according to the newspaper.
In April Gulf Air announced it was to restructure its operations in a bid to curb losses of $1 million a day. The plan includes destination, fleet and employee cutbacks.
The airline said the new package also includes a significant increase to housing and schooling allowances for pilots.
It has also agreed to bear the cost of a 1% salary tax the Bahrain government introduced earlier this year to fund a national unemployment benefit scheme.
News of dissatisfaction among staff is just the latest in a string of problems to hit the airline.
At the end of last month chief executive Andre Dose quit the airline after just four months in charge after reportedly clashing with the board.
Gulf Air has appointed Björn Näf as Dose's temporary replacement and is still looking to appoint a permanent successor.
The airline is currently the subject of a criminal investigation by police over alleged financial irregularities and UK forensic auditor Kroll has also been appointed to examine the airline’s books as part of a separate government inquiry into its poor financial performance.