Wirraway
16th Aug 2003, 01:14
Fri "The Australian"
Gulf bets daily double will connect
By Steve Creedy, New entrants
August 15, 2003
GULF Air has told the federal Government that it wants to fly double daily services to Sydney as it concentrates on developing markets in the Middle East, the Levant region and Greece.
Chief executive James Hogan says the airline, which returns to Australia with daily Bahrain-Sydney services from November 23, would also like to fly daily to Abu Dhabi.
But Gulf will not compete on services to the UK at this stage and has no plans of following Emirates into the trans-Tasman market.
Instead, it will work on the tourist, trade and visiting friends and relative (VFR) potential of its extensive Middle East network and those of its partners.
"In looking at Australia, our first point was to look at how we can connect markets where, over the past two or three years, carriers have moved away and where there's been an important ethnic association with the Australian community," Hogan says.
"So we met with Olympic Airways and signed two months ago a code share agreement that the Gulf Air flight to Australia will also be the Olympic Airways flight to Australia."
Gulf will provide a connection to Athens through Bahrain via Singapore. The airlines also sat down with Royal Jordanian to provide connections to cities such as Cairo, Beirut and Istanbul.
The moves are part of a major restructure by the Australian chief executive – who joined Gulf in May last year after his position as chief executive of the proposed Tesna consortium of Solomon Lew and Lindsay Fox evaporated – in a three-year plan to knock the carrier back into shape.
This includes a striking new livery and setting up a full-service all-economy unit, Gulf Traveller, aimed principally at workers from South Asia but also expected to expand to secondary cities in Europe.
The airline begins servicing Athens on the same day it starts its Sydney service and has flagged its intention to return to Johannesburg, Amsterdam and Rome.
It is also looking at a US gateway and awaiting US permission to operate back to the Iraqi cities of Baghdad and Basra.
Gulf is also adding new aircraft: it has just taken two Airbus A340s and expects to make a wider decision in the first quarter of next year. It has been advertising in Australia for pilots to boost Gulf Traveller from six to nine Boeing 767s.
However, Gulf is not pursuing the ambitious organic growth plans of neighbouring competitor Emirates.
"We've both got growth plans but their's is obviously to be a global player and we see our solution to work within an alliance with Arab carriers or even Oneworld or Star," Hogan says. "And to me Oneworld or Star gives our customers more choice."
The Gulf chief says the emphasis of the restructure has been on improving frequency and connectivity while beefing up its service to include the Ansett International concept of a five-star chef in first class.
The airline is still working on its pricing for Australia, a market Hogan believes it should never have abandoned, but says it will not be undercutting competitors.
"We believe we can sell the service," says Hogan, who is optimistic the new daily schedule will attract business travellers interested in exploring the untapped potential of the Middle East market and opportunities in the reconstruction of Iraq.
"The crew is fantastic and the (first class) proposition is unique with the chef. Our business class service is, in fact, our old first class service."
Gulf also sees Middle East tourism as an opportunity and will be tackling the leisure market with the release in Australia of its Arabian Experience holiday packages.
Hogan says Gulf's owners – Bahrain, Abu Dhabi and Oman – are strategically positioned to feed the region.
"We think our competitive edge is our network and connectivity in the Middle east," he says. "We have the strongest regional network, stronger than our competitor – and are the second-largest operator from the Middle east into India."
On the financial front, Hogan says the three-year plan is on track and the airline has worked hard to boost efficiency and reduce costs.
He has been encouraged by a 25 per cent year-on-year improvement in business class over the northern summer that is helping push up yields.
Gulf recorded a BD40.6 million ($162 million) loss in 2002 and its plans call for that to be halved this year as it aims for a small profit in 2005.
"We'll hit 20 million or below and next year we'll break even," Hogan says. "We haven't missed our numbers yet since we started the plan."
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Gulf bets daily double will connect
By Steve Creedy, New entrants
August 15, 2003
GULF Air has told the federal Government that it wants to fly double daily services to Sydney as it concentrates on developing markets in the Middle East, the Levant region and Greece.
Chief executive James Hogan says the airline, which returns to Australia with daily Bahrain-Sydney services from November 23, would also like to fly daily to Abu Dhabi.
But Gulf will not compete on services to the UK at this stage and has no plans of following Emirates into the trans-Tasman market.
Instead, it will work on the tourist, trade and visiting friends and relative (VFR) potential of its extensive Middle East network and those of its partners.
"In looking at Australia, our first point was to look at how we can connect markets where, over the past two or three years, carriers have moved away and where there's been an important ethnic association with the Australian community," Hogan says.
"So we met with Olympic Airways and signed two months ago a code share agreement that the Gulf Air flight to Australia will also be the Olympic Airways flight to Australia."
Gulf will provide a connection to Athens through Bahrain via Singapore. The airlines also sat down with Royal Jordanian to provide connections to cities such as Cairo, Beirut and Istanbul.
The moves are part of a major restructure by the Australian chief executive – who joined Gulf in May last year after his position as chief executive of the proposed Tesna consortium of Solomon Lew and Lindsay Fox evaporated – in a three-year plan to knock the carrier back into shape.
This includes a striking new livery and setting up a full-service all-economy unit, Gulf Traveller, aimed principally at workers from South Asia but also expected to expand to secondary cities in Europe.
The airline begins servicing Athens on the same day it starts its Sydney service and has flagged its intention to return to Johannesburg, Amsterdam and Rome.
It is also looking at a US gateway and awaiting US permission to operate back to the Iraqi cities of Baghdad and Basra.
Gulf is also adding new aircraft: it has just taken two Airbus A340s and expects to make a wider decision in the first quarter of next year. It has been advertising in Australia for pilots to boost Gulf Traveller from six to nine Boeing 767s.
However, Gulf is not pursuing the ambitious organic growth plans of neighbouring competitor Emirates.
"We've both got growth plans but their's is obviously to be a global player and we see our solution to work within an alliance with Arab carriers or even Oneworld or Star," Hogan says. "And to me Oneworld or Star gives our customers more choice."
The Gulf chief says the emphasis of the restructure has been on improving frequency and connectivity while beefing up its service to include the Ansett International concept of a five-star chef in first class.
The airline is still working on its pricing for Australia, a market Hogan believes it should never have abandoned, but says it will not be undercutting competitors.
"We believe we can sell the service," says Hogan, who is optimistic the new daily schedule will attract business travellers interested in exploring the untapped potential of the Middle East market and opportunities in the reconstruction of Iraq.
"The crew is fantastic and the (first class) proposition is unique with the chef. Our business class service is, in fact, our old first class service."
Gulf also sees Middle East tourism as an opportunity and will be tackling the leisure market with the release in Australia of its Arabian Experience holiday packages.
Hogan says Gulf's owners – Bahrain, Abu Dhabi and Oman – are strategically positioned to feed the region.
"We think our competitive edge is our network and connectivity in the Middle east," he says. "We have the strongest regional network, stronger than our competitor – and are the second-largest operator from the Middle east into India."
On the financial front, Hogan says the three-year plan is on track and the airline has worked hard to boost efficiency and reduce costs.
He has been encouraged by a 25 per cent year-on-year improvement in business class over the northern summer that is helping push up yields.
Gulf recorded a BD40.6 million ($162 million) loss in 2002 and its plans call for that to be halved this year as it aims for a small profit in 2005.
"We'll hit 20 million or below and next year we'll break even," Hogan says. "We haven't missed our numbers yet since we started the plan."
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