‘Gulf Air should set its priorities right’
"Gulf Air (GF) should be helped to streamline its priorities as the airline is vital to the country’s economy, say
businessmen.
They emphasised that closing the company was not a solution and recommended that it be shrunk to a local economy status airline, so that it survives its difficult phase with ease.
Observing that strategies being debated for the future of GF were vague, Mashal Group Chairman Dr Yousef H Mashal said, "Proper information is not available to analyse the conditions of the company. Even the recent suggestion on reducing the size of the airline to 20-22 aircraft is too ambitious.”
GF should remain an economy airline, sell its assets and pay off its debts, while ensuring that it does not lose out on the main airports in the international aviation map, he said, adding, “Reducing their extra stations all over the world and sharing/rentals with other airlines could add revenue to the airline.”
Commenting on the issue of citizens losing their jobs, Dr Mashal said the employees can be compensated suitably. "It is more like a sacrifice for the country.”
Pointing out that GF was a major drainer on Bahrain’s budget in the past, Dr Mashal said the Parliament was justified in denying further funds to the airline.
A merger with existing airlines might not be wise as long as the partner is not a profit-making unit. “Merger of two financially sick companies will require a lot of cash inflow and will again remain a burden on the government,” he said and suggested that a "merger-cum-privatization" should be the deal. The company should stay away from the government and be managed by a private owner, he added.
However, businessman icon Abdul Hameed Kooheji said retaining GF was extremely important for the government as the airline linked Bahrain with the rest of the world. “By shutting down Gulf Air, we will be putting our economy in other’s hands, which is a huge risk,” said Mr Kooheji.
The tussle between MPs and the government should be sorted and primarily the top management of GF should be reshuffled. Mr Kooheji also pointed out that rearrangements in the past did not work well as the management lacked feasible plans.
"The extreme possibility in this scenario is only putting limits to its losses. We have to find a solution to keep Gulf Air afloat," he added"