Gulf Air may see further restructuring
By Shuchita Kapur on Tuesday, July 21, 2009
Embattled regional carrier Gulf Air may undergo another round of restructuring as it awaits the arrival of its new Chief Executive Samer Majali, Emirates Business has learnt.
There are talks that Bahrain's national carrier is currently seeking a restructuring advisor and might soon issue a tender in that regard, an industry expert told this paper on condition of anonymity. A Gulf Air spokesperson, however, declined to comment on the imminent restructuring citing the arrival of the new CEO.
"Whilst our primary concern is to provide as much clarification and support as possible for our customers and our employees at this time of change, until the new CEO has taken up his position and had a chance to review the future direction of the business, any further comment would be both inappropriate and premature at this stage of the process," he told this paper in an e-mailed response.
Samer Majali was not available for comment when this paper contacted him.
The Gulf Air office in Bahrain also refused to comment on any job cuts that may take place as part of a possible restructuring plan. Royal Jordanian Chief Executive Majali, who is expected to join Gulf Air next month, replaces Björn Näf, who quit earlier this year amid pressure from some of Bahrain's Members of Parliament, who had in June sent a letter to the airline's Chairman Talal Al Zain asking him to to oust the incumbent.
The airline, which was losing $1 million (Dh3.67m) a year until 2007, may also look at expediting the privatisation process as Majali, who oversaw Royal Jordanian's successful privatisation in 2007, is an experienced hand in such transformations.
Source:
Business24-7