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Old 17th September 2007 | 06:26
  #25 (permalink)  
boeingdriverx
 
Joined: Apr 2005
Posts: 108
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From: Middle East
We should also remember that the airline business is a very low margin business. Even airlines with the best management will go once in a while in big debt and sometimes never recover.

So making money in the airline business is difficult. GF is no exception. Do you really think that QR or EY are making money?

Gulf Air is a goverment company in a very regulated ME aviation market. In these markets, goverment funding is a MUST, to be able to compete with other airlines (EK - EY etc.). Think about europe 20 years ago and Sabena, Air France, Swissair. Same story.

But maybe one day the ME will deregulate like the US and Europe before, and then only the strongest will survive...

BD
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