they still have a chance
At the current moment and the direction that Gulf Air is following i can certainly say that they still have a chance to re coupe losses and turn around.
Gulf Air has a rich heritage and has enough time and money to turn into a big profitable airline, all they need to do is get a bit more advice and fix the current issues they have with there customer service, aircraft and more.
Emirates is not doing anything logically, They are just spending money which they may need one day.
The Europe/American market has been hit to badly since the credit crunch oil prices and other reasons, compared to the other markets they are the most venerable compared to others, The middle east can offer cheap and lucrative fares, But the Europe airlines can not since the oil prices have increased so much.
Everything should return to regular standing soon, Wait a couple of years to see another big boom and more stable markets around the world.
So i think Gulf Air still has a chance, but they need to use the time wisely.