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We can do it! (Gulf Air)

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We can do it! (Gulf Air)

Old 18th Sep 2007, 09:35
  #1 (permalink)  
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Join Date: Jun 2007
Location: Operations
Posts: 99
We can do it! (Gulf Air)

Following the recent events at GF I think it is only fair we list here the actions resulting of the myiopic "we can do it" campaign and the dire consequences they have brought about.

Example:

Action: "We can't keep such a large workforce, rararara"
Result: more than 600 crew resiging to join the competition

At what cost?

Want to really save money?

On you go!
Al Fakhem Snr. is offline  
Old 18th Sep 2007, 09:58
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Join Date: Jan 2007
Location: Near Iranian Border
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Action: "we don't need catchy slogans as the business is in real trouble"
Result: "We can do it"
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Old 18th Sep 2007, 12:32
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Join Date: Mar 2005
Location: Canada
Age: 49
Posts: 69
It ends up costing us more.......

If only they wouldn’t threaten flight and cabin crews jobs they would never had to face this;

Old pilot salaries vs new package is costing GF more.
Old FA salaries vs new package with huge increase is costing GF more.
Paying early retirements is costing GF more.
Training pilots on the Airbus was the extra cost that wasn’t needed.

The result;

We lost experienced; pilots, FAs, Engineers, ground staff, HQ staff, off station staffs.
There is a huge cost of hiring, training new flesh.
We have to start them too with the higher salaries, package.

Old staff with old salaries vs New staff (even half the amount) with huge salary increase = you do the math.
BusTie is offline  
Old 18th Sep 2007, 13:20
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Join Date: Mar 2004
Location: FL 391
Posts: 106
Yeah, why not telling the new management to cancel the new package so we can save the company some money?
You are just tickling the dragon's nose!
Sit down, buckle up, shut up and enjoy the new package.
Had they come up with this strategy from the first day of their arrival, that would definitely cost the company much less, than now loosing valuable staff and retraining some new not so valuable staff !
Mismanagement ? Definitely!
Do we need the new package ? Definitely !
So please stop complaining about your lifestyle enhancement, this is not going to make GF sink, if anything will !!!
On the other hand, don't you think enough has already been said regarding the illdoings of the new management ???
Why starting just another Deja vu GF thread ?
Soft Altitude out !
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Old 18th Sep 2007, 13:32
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Join Date: Mar 2005
Location: Canada
Age: 49
Posts: 69
Angel

I am not complaining, basically stating the sequence of proceedings and primarily from a business viewpoint.
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Old 18th Sep 2007, 13:33
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Join Date: Apr 1999
Location: South of North
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The raise is being paid by Mumtalakat (spelling?) not GF.
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Old 18th Sep 2007, 13:34
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Join Date: Oct 2000
Location: Bahrain
Posts: 624
I beg to differ. The necessary actions are being done. Everything is actually falling into place. By this time next year, you won't even notice the turmoil and teething problems that had faced us over the last few months. And GF will consolidate it's position in the market.
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Old 18th Sep 2007, 13:37
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Join Date: Mar 2005
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Inshalah, May the golden falcon fly high above all once again...inshalah.
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Old 18th Sep 2007, 14:11
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Join Date: Feb 2002
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Wink

And may all those walking below said flying falcon have a decent brellie to stave off what falls from yonder heights.
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Old 18th Sep 2007, 14:31
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Join Date: Apr 1999
Location: South of North
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We lost what - 100 million BD last year ($300 million US). The ONLY change that has occurred is that GF has cancelled a few routes (DUB was doing well apparantly and building nicely). The cost to those routes has been accounted for already so by dumping them (DUB specifically) you lose. The cost to keeping it would have been minimal - hell it might have started making something.
We have 3 or 4 'spare' airplanes in a fleet of 30!!??? Yes, it saves OTP but MAN- that is an expensive method to ensuring reliability!!!! Show me an airline anywhere that has 10% of its fleet as spares!
SO the next year will show big losses again. Even by shedding 1000 jobs how much do you save. Lets assume they are all paid 1000BD month and we know in reality those wages are lower - but lets be conservative. That saves 1 million BD/ month or 12 million a year. 10% of last years loss. So, the big move to reduce staff will come no where near saving the losses.
No direction from the board (or government), can't attract a world class CEO with experience, a good portion of the managerial experience has left the building (making the new managers jobs more difficult) etc etc etc
Now Bahrain has to absorb ALL of the loss. Is the political will there to loss 100 million BD????? I doubt it. SO that means BIG change and, likely, change that will not be pilot/company friendly.

Go public??? Mot unless they cook the books or consolidate to a degree that hey have a hope of eeking out a minor profit.

My guess is the company will consolidate further. There best hope is to MINIMIZE losses since competing in the ME and making money is IMPOSSIBLE in the current climate.
Pilots will still have their jobs I have no doubt. It is just that GF will not be an attractive career - imo.


PS. if the recent raises show on the company books, instead of Muntelekat, the loss wil be even bigger!!!!
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Old 18th Sep 2007, 14:50
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Join Date: Oct 2000
Location: Bahrain
Posts: 624
With the current employee numbers continuing to drop by the week to the ideal number,and an average 70% load factor on the current summer schedule on all flights, do you think we will lose what we did last year? Not even close! In fact, if we're not careful, we might break even. And if we're not really careful, we might even make a stipend!!!
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Old 18th Sep 2007, 15:39
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Join Date: Feb 2007
Location: neverland
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All these opinions and no real facts... just curious since things have improved has anyone just smiled and and said thanks and continued with their job? If GF loses money they lose but all the airlines in the area are losing so that is not really our main concern. JOB security is somewhat here and conditons are now here so please people lets relax enjoy the sun and hope we CONTINUE down the road to greener pastures. And the slogan WE CAN DO IT i admit is funny but to criticize management for a slogan aimed at moral is kind of silly
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Old 18th Sep 2007, 15:53
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Join Date: Jan 2007
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The maths don't add-up

Sal-e, I think you are being bit of an optimist if you think that this summer the company with be better than last year.
From a revenue (i.e what money the company gets), last year, with a fleet of 34 aircraft, the network average load for the summer months was around 77% (if my memory recalls).
This year with a fleet of 30 aircraft (inc. 3-4 spares), we flew with 70% load.
If I am not mistaken, we flew less passengers than last year with reduced capacity. Having been in this business for a fair while usually if you reduce your capacity, your load factor goes up not down.
You then have to add in the fact the the local competition is just trashing the market with cheap fares, so you don't have much chance to up the yields.
So, the revenue will be much less than last year.
For costs, GF will have a lower operating costs as it has 30 planes in the fleet and has been reducing staff. But one factor that will negate all this is the cost of fuel. GF does not hedge and will be paying market rate for its oil. Less oil will be needed than last year as less flying but the cost per barrel I believe is higher this year.
So less revenue and more costs = big loss.
left_to_first_class is offline  
Old 18th Sep 2007, 15:54
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Join Date: May 2005
Location: Go to the second sand dune, then turn right.
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softalt- dont worry to much about bus tie. his thoghts were out of line with ek pilots too when he told a new guy to miss his sons delivery (wife is having a baby) and not rock the boat by delaying the starting date- see what I mean hear:

http://www.pprune.org/forums/showthread.php?t=292191

geez al fahkem snr. u complain more than my ex girlfrend (biatch). if you are so misserable at gf why dont you come to ey or go somewere else? life is to short man.
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Old 18th Sep 2007, 16:18
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Join Date: Sep 2005
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Hmmm - Trader, got the sights reset and crossed the river already?
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Old 18th Sep 2007, 19:13
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Join Date: Oct 2000
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We'll just have to wait and see, lefttofirstclass. The biggest expence had been the redundancy package. The general package raise is offset by resignations. Fuel prices are accounted for in seat costings.
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Old 18th Sep 2007, 19:49
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Join Date: Jun 2001
Location: Intentionally Left Blank
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Any truth in the rumour regarding Mr Kooheji leaving the BOD earlier today?
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Old 18th Sep 2007, 20:00
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Join Date: May 2007
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Sal-e is right.... even though load factor has reduced but the yeild factor has been highest since many many years.
Another positive was getting rid of captain Ameena who has been untouchable in the past.At least here they have proved that they can do it!!! and they have done it.
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Old 18th Sep 2007, 21:04
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Join Date: Apr 1999
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Left of - less pax but with the same number of aircraft!!! Some are just sitting.

S-ale - my point was even if your shed 1000 employees at 1000BD a month the savings, while not insignificant, don't come close (less than 10%) to covering the historical losses. So where does the other 90 million dinars come from????

Less routes, less flying does equal less loss. Which is why I believe there is a chance that GF may consolidate its fleet and try to MINIMIZE its losses while recognizing that making a profit is not likely.

Point8four - yup, leaving for EK. I really hope GF pulls up in time and things turn around. I am just not willing to risk a career on a company that has no strategic plan, a BOD with no knowledge of the industry and can't seem to decide which direction to go.

There is big downside risk to staying (and little upside) and little downside (lots of upside) risk to going to EK. With a family to support I have decided to move to the less risky option. I will leave GF with good memories!!!!!
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Old 19th Sep 2007, 09:37
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Join Date: Jan 2007
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No FD NO FRS - yes the yield will go up (in fact it will rocket and be the best this company has seen for a long long time) but its not a miracle.
Flying longhaul pushes the yield down as its a lot of miles, likewise a lot of shorthaul flying will push the yield up as it short distances.
Since June, GF has axed DUB, JNB, SIN, SYD and JKT - all longhaul routes.
So if you take a lot of longhaul flying out, your yield will naturally go up.

The only way we will know if this summer has been a success (which we all hope for) is the final revenue figure. It will be down due less flying/seats but if its better than the capacity reduction then its a sure good sign things are moving in the right direction.
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