New CEO bullish!
From the Khaleej Times(10/6):
"Gulf Air will reduce its staff strength and introduce several changes as part of the airline's new strategic restructuring programme, designed to make the financially-troubled airline a profitable venture in three years for the three owing AGCC states.
This was stated yesterday by the airline's Acting President and Chief Executive, James Hogan, at a Press conference. He also said that the BD30 million pledged by the three owning states - Abu Dhabi, Bahrain and Oman - is sufficient for the present requirement. "We would seek more funds and this issue would be discussed at a meeting in September, so that we can go ahead with the complete rebuilding programme," he added.
Commenting on Qatar's recent withdrawal as partner, he said: "In six month's time we will know if Qatar will make its final decision of withdrawal." When asked by Khaleej Times what if Oman also pulls out in favour of its own existing national carrier, Oman Air, he said that the present owning-states, which includes Oman, have all given their full support and it is unlikely that Oman will take such a step.
"We know that the task of making the airline a profitable one is difficult," he said. "we are confident that we will succeed in making Gulf Air a profit-making international airline, he added. He declined to comment on the percentage of retrenchment of staff, and said that the "process has already begun and performance and productivity of each staff member is being evaluated."
"We will focus more on voluntary retirement rather than terminating services," he said. The airline's restructuring programme, which covers all the areas of operation, is aimed at 'winning the battle to rebuild Gulf Air.' The work has already begun, he said. "The next few months are very important for Gulf Air, and our key priorities will be to restore confidence in the market and recover lost business opportunities," he said.
The coming phase is crucial and needs the concerted efforts of all staff so that Gulf Air can pursue the process of restructuring, he added. The renewed commitment to put the airline back on track includes the creation of an "executive grade programme" to train our future leaders and a number of senior international airline executives will join to provide specialist support. Hence, the company will also have to reduce staff and focus on cost, he said, adding that the strategic changes will cover in various areas.
"As part of the programme, we have created a new service division, led by Luke Medley, formerly chief executive officer of Avis in the UK and Australia and also former Ansett executive, he said. Hogan also mentioned that the division will focus on improving cost and efficiencies related to airport, catering and services delivery. The network division, headed by Farid Alawi, was established to ensure that the organisation optimises schedules, utilisation of aircraft, yield management and route profitability. He will be supported by a team of international airline executives, Hogan said. Adel Ali, Vice-President, sales and marketing of Gulf Air, announced the airline's Great Summer Escapes promotion, underlining that "Gulf Air wanted to treat its loyal customers to some exciting breaks, ensuring that this promotion also demonstrates our commitment to remain competitive in the market."