Gulf Air - $159.2 million owner-state cash injection

[BahrainLad]

BD60 million capital boost for Gulf Air


GULF DAILY NEWS 31 MARCH 2001

ABU DHABI: The owners of Gulf Air yesterday agreed to inject BD60 million ($159.2m) into the airline to help it overcome financial difficulties.

Shaikh Ahmed bin Nasser Al Thani, who currently holds the rotating seat of chairman on the Gulf Air board, said that the governments of Oman, Bahrain, Qatar and Abu Dhabi would each extend BD15m to ease a cash crunch and contain accumulated losses.

Shaikh Ahmed, who is also Qatar's communications and transport minister, said the cash injection would be enough to meet the airline's operating commitments this year and to cover losses which he put at BD99m by the end of 2000.

Shaikh Ahmed was speaking after a meeting of Gulf Air's board of directors in Abu Dhabi to discuss recommendations submitted by an external auditor.

Debts

Bankers recently put Gulf Air's debts at around $1 billion.

An airline official earlier this month attributed the financial difficulties mainly to fuel price rises and growing competition.

Gulf Air has not disclosed its 2000 results. In 1999, it recorded a net profit of BD400,000, sharply down from $10m in 1998.

Shaikh Ahmed stressed that none of the owners of Gulf Air had any intention of selling their stakes.

He said the board of directors had set up a committee to study measures needed to guarantee that no further losses are incurred, including reducing the number of destinations and cutting back on the number of employees.

Shaikh Ahmed said the airline, which operates a fleet of 30 aircraft, would consider whether to lease or purchase aircraft.

$1 billion debt.
BD 99 million loss - approx US$200 million.

WHERE DO GF GO FROM HERE?

[information_alpha]

from what i have heard it is not the first time and wont be the last!

A friend of mine used to work for GF and the wages were late occasionally and that always ment that the sheik had paid rather than the company...

[CaptA320]

Information_alpha in the 7 years I've been in GF you can actually set your watch by the salary payment. Never been late once even in worse cash flow times.

[Speedbrake Lever]

Alpha

WRONG I'm sorry and I've been here longer than your mate was

It doesn't really matter whose pocket it comes out of it comes out of someone's pocket if thats his &(your) theory

S.L.

[five percent]

alpha

your friend was totally incorrect - salary in 20 years always in bank by 28th month - earlier if that date is weekend or holiday!

[GF_001]

guys, Gulf Air is in better shape now than it was last year or a year before that, the airline is leasing some has leased out 2 A330 and 2 more two go by year end, this is only for short term, but as from 2003 Gulf Air plans to bring new fleet as B767-300ER start to go, just watch out in couple of months,whether B767-400 or B777 or some more scarebuses, we might even hire new drivers!!!!

[clipstone]

Salaries may be on time, but on my experience don't be silly enough to use GF for a longhaul, esp around holiday times! I had my worst ever flight from LHR to MEL and return over last xmas(at least they were consistent I suppose), out-bound was over booked with lucky pax being given tix to travel SQ/BA/QF/CX at check-in at LHR.

On the return, we had pax on cabin crew jump seats from MEL to BAH (fare paying pax not staff hitching a lift) then from BAH after several hours delay, partly due tech A330 so let them off that bit, and being subjected to no pax welfare for 6 hours, they decided the flight was over booked by 130 pax and we'd have to wait and see when/how we were to get home!

Suddenly an additional A330 was magic'd up and 2 flights left BAH for LHR 10 mins apart, and ours (the extra flight) still had fare paying pax on the cabin crew jump seats as well as all pax seats full. If the flight was "only" 130 pax over booked I have no idea where all the additional pax came from to over fill the second A330???

No apology...nothing....and no reply (just acknowledgment letters) to subsequent letters to both London and BAH offices.

Sorry GF deserve everything they get, charter to Oz was better.

[This message has been edited by clipstone (edited 06 June 2001).]

[prit]

I have been told that wages are on time.
The reason to doubt their recovery will be in getting rid of Beings(work-horses),as one of the mistakes.To replace them with newer ones???Maybe!!!

The cleanup campaign has to start in the administration side,(revenue and expenditure) -handlers,Engineering is another costly affair(wrong decisions cost extra money to fix the same problem ),etc.

[oneilas]

Every few years theres a big "steal" or Fraud,and the big and expat fish get the boot and the CEO is changed.
A Aaahhh!!! But the small fish,the deadly ones,PC virus type,"piranhas", remain on board and still do their work,discreetly,and a few years later,the Governments realise theres been embezzlement,"AGAIN".
Its been ongoing trend, 2 or 3 times in the last 10 years,so what can be done?"BIG Question???"