Bahrain Air open to merger with state-backed Gulf Air - Transport - ArabianBusiness.com
This is not surprising news, but I wonder what exactly these "synergies" that would be realized by merging would be?
Bahrain Air is a 4 year old airline that has never been profitable, owns no assets, doesn't fly anywhere Gulf Air doesn't, and has a sliver-sized market share. One has to wonder whether a merger with Gulf Air was the exit strategy of the original investors all along?
While it doesn't seem to make any business sense, the airline is trying to pull on the emotional heartstrings of the Government. After all, might it not be a loss of face to have a red & white colored airline with the country's name on it- fail?