Bahrain has been coming apart for quite a while now look at Gulf Air.
Actually you're mixing up two issues. Gulf Air was surpassed when each state decided it needed it's own vanity flag carrier. Hence Oman Air.
The collapse of Bahrain as a state is part of the contagion sweeping the region. Last week the Kuwaitis took to bribing the populace with even more money.
Doesn't matter anyway, they're not there to make money. Different set of rules for EY and QR. EK however, contrary to first impressions, is a real business.