You are not too far off, Mephistopheles.
As I understand it, the Government has made it very clear that they are expecting certain financial performance targets to be reached (a significant reduction of losses) otherwise they will euthanize the Falcon. Consequently, we are seeing Management scramble to find and implement ways and methods to reduce costs . . . techniques which, IMHO, should have been adopted YEARS ago (but the Company was too comfortable or unmotivated, or both).
There are a number of companies who have met their end this way. Unfortunately, what I perceive as the major obstacle is the corporate culture and mentality. For one, some people just don't believe it could happen. Secondly, the experience of working a lean and efficient operation just isn't there. I see real effort being made by the Company, but in the end, changing behavior and mindsets is probably one of the most difficult things to do. But in this area, Gulf Air seemingly hasn't addressed the most fundamental concept-- getting employee buy-in. Communication (of the two-way type) is inconsistent and infrequent. Without buy-in, no amount of directives or instructions will have a long-lasting, positive effect. It seems (to me) to be an essential ingredient to any successful corporate turn-around.