Can you substantiate this further?
CRUIZE
Can you provide further information with regards to your claim? It has always been my opinion that Bahrain (at this time) simply is not big enough to have two airlines competing with eachother on the same routes.
I am pro competition and in the long run it raises everyone's game (at least from the consumer's perspective). However, in this region markets are not perfectly competitive (look to EK, QR, EY and GF), hence it is suicidal to have a competitor on your home turf in the form of Bahrain Air. It just doesn't make sense as long as one airline gets subsidised and the other does not. It is better to simply roll them into one. If you are going to subsidise then you might as well monopolise (to make a return on your subsidy).
If I am not mistaken, I also believe it is the opinion of our current CEO that the setting up of Bahrain Air was a strategic mistake on Bahrain's part. I am not privvy to the loads, nor to how close they are to profitability. However, what I do see is half of their fleet parked on the ramp everytime I taxi out to Rwy30R. The amalgamation of Bahrain Air into Gulf Air would have, in my opinion, the following benefits;
1) Reduce point - to - point competition from Bahrain
2) Bring (relatively) new aircraft into Gulf Air's fleet (a refit would be necessary)
3) Consolidate loads on Gulf Air, reducing losses (this is not given, as other carriers in the region would also be looking to take market share left by Bahrain Air, although Gulf Air should be in a prime position
4) Promote Gulf Air as "THE" airline of Bahrain
I would be interested if anybody could add to the points I have made above (no silly comments please!)
Regards
B727-200