One of the biggest problems with some Gulf airlines, and GF is probably the best example, is that the company is seen as one of the largest sources of employment by locals. It's our airline and therefore it will provide us with lots of high paying jobs, is the way the local population sees it.
The problem is, and I generalise here, most said locals do not have the same work ethic as others and therefore it takes two or three locals to do the job of one expat. GF was, and probably still is, beset by problems with staff who arrive at the pink palace in the morning, clock in, and then leave the premises to run personal errands, take the kids to school, etc. etc. and return to the office hours later. The expat managers find local staff constantly on their mobiles talking to who knows who about who knows what. The chances of it being about business are fairly remote, but unless the expats speak arabic it's difficult to prevent this happening. It is one of the most overstaffed and poorly managed organisations I have ever seen in a very long time in this business.
The airline will never get onto a secure financial footing until staff are properly managed and made to understand that they either give 100% of their working hours to their employer or they can go find alternative employment.
Not the airline's only problem by a long chalk, but certainly a significant part of what's wrong.