These articles,
Gulf Air restructuring to concentrate on regional operations and
Gulf Air to cut staff, may sell planes, Bahrain Aviation, Transportation - Maktoob Business, basically restates what I wrote on P.65. We may argue the 10/10 narrow/wide body aircraft combination for a 15/10 or 15/5, but GF has to readdress his Bahrain clientele where the cash comes from. And this includes cargo.
Poaching pax from other Gulf countries will not make money. QR/EY/EK, among LCCs, will do cheaper. Through traffic will be only viable if pax spend some time and money in Bahrain buying GF or Bahrain associated products.
However, what does Bahrain have to offer versus, let's say, the UAE? In the UAE you can go to places, inland, mountainous terrain, beaches facing the Gulf and the Indian Ocean, attractive shooping, etc..
This is NO rocket science.