Mephistopheles, I can't comment about the loss figures because I am not "in the know." However, I would just like to comment regarding the statement of "giving customers what they want."
I know that the common mantra in the service industry is "The Customer is Always Right." It sounds pretty and it tugs at the emotional heartstrings, but the truth of the matter is that there are plenty of examples on when the customer is wrong (wise service providers don't tell him that in such blunt terms, though).
I know that "competition" in this part of the World has everything to do with having the biggest, the most luxurious, the most expansive, the most impressive, the most prestigious . . . . etc etc etc., without regard to sustainability or profitability (or sometimes even logic).
In other parts of the World (where profitability and sustainability are important issues), companies do not "give the customer what he wants" but rather they "give the customer what he is willing to pay for." I appreciate that Majali swims across a popular current in this philosphy, but he is trying to inject this dose of reality to the business in the region. Sure, a business will lose some customers (some were not worth having) but by being able to provide greater frequency to more regional destinations, the strategy is to pick up the higher-yielding passengers who recognize a real value in the product being offered.
I appreciate that everybody (including yours truly) experience both good and bad days and emotional highs and lows at any employer. But without intending to direct my comments to any particular forum member, I wonder why some of the contributors stick around at Gulf Air when it is evident, month after month, year after year, that they are bitter and unhappy about the airline, its past, present and future plans? I doubt that Gulf Air will ever be an airline that is similar in scale to Emirates or Qatar Airways, but both of these airlines are recruiting. Let's be honest with ourselves. Isn't life too short to fritter it away in something you don't believe in?