Gulf Air board meeting - November?
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Gulf Air board meeting - November?
Will it happen this time? From the Dubai "Gulf News"(7/10):
"The much-awaited Gulf Air board meeting to ratify the three-year strategic plan prepared by the management will take place in November. Under the earlier plan, this crucial meeting was scheduled for September 14. But since the owners - Bahrain, Abu Dhabi and Oman - requested more time for further consultations with the management on the turnaround plan, the date was indefinitely postponed.
Talking to Gulf News yesterday, James Hogan, president and chief executive of Gulf Air said the airline would be able to cut losses during the current year substantially from those of previous year.
"Gulf Air will not only break even, but will post profits within the next three-year period, for which a strategic restructuring plan has already been submitted with the owners," added Hogan.
On the new aircraft induction plan and the chances of Qatar - which had announced plans to pull out of the ownership of the airline - attending the board meeting, Hogan said, "These things will be known by the board only."
However, on the future strategy, Hogan said the airline would emphasise on business and leisure travel segment, where he sees good future potential. Gulf Air has decided to significantly increase the number of flights out of Abu Dhabi and Dubai effective from October 27.
Non-stop flights from Abu Dhabi will grow from 158 to 179 per week while in total, 204 flights including one single stop flight will operate to all Gulf Air destinations.
Gulf Air's Dubai station manager, A. K. Nizar said flights out of Dubai have been increased by more than 25 per cent. "By the end of this month, Gulf Air will have close to 70 flights per week out of Dubai serving the Middle East and beyond," he added.
"Gulf Air customers in the UAE have just five more days to take advantage of the fare discounts to selected destinations in the airline's extensive network covering the Middle East, Europe, Far East, Africa and the Indian Subcontinent, " a statment from the airline added."
"The much-awaited Gulf Air board meeting to ratify the three-year strategic plan prepared by the management will take place in November. Under the earlier plan, this crucial meeting was scheduled for September 14. But since the owners - Bahrain, Abu Dhabi and Oman - requested more time for further consultations with the management on the turnaround plan, the date was indefinitely postponed.
Talking to Gulf News yesterday, James Hogan, president and chief executive of Gulf Air said the airline would be able to cut losses during the current year substantially from those of previous year.
"Gulf Air will not only break even, but will post profits within the next three-year period, for which a strategic restructuring plan has already been submitted with the owners," added Hogan.
On the new aircraft induction plan and the chances of Qatar - which had announced plans to pull out of the ownership of the airline - attending the board meeting, Hogan said, "These things will be known by the board only."
However, on the future strategy, Hogan said the airline would emphasise on business and leisure travel segment, where he sees good future potential. Gulf Air has decided to significantly increase the number of flights out of Abu Dhabi and Dubai effective from October 27.
Non-stop flights from Abu Dhabi will grow from 158 to 179 per week while in total, 204 flights including one single stop flight will operate to all Gulf Air destinations.
Gulf Air's Dubai station manager, A. K. Nizar said flights out of Dubai have been increased by more than 25 per cent. "By the end of this month, Gulf Air will have close to 70 flights per week out of Dubai serving the Middle East and beyond," he added.
"Gulf Air customers in the UAE have just five more days to take advantage of the fare discounts to selected destinations in the airline's extensive network covering the Middle East, Europe, Far East, Africa and the Indian Subcontinent, " a statment from the airline added."
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don't be silly - January?
UAE Gulf News(5/12):
"The long-awaited Gulf Air board meeting to discuss a strategic plan aimed to float the financially-troubled carrier, has been rescheduled again, company sources said yesterday. The meeting is likely to be held by the first week of January, the sources told Gulf News on condition of anonymity.
The original meeting was scheduled for September 14, but was postponed to the first week of December when owner states requested further consultations with the management, according to a statement issued then by chairman Sheikh Hamdan bin Mubarak Al Nahyan.
The plan, which focuses on marketing and sales and the introduction of several new divisions, is intended to help restore the company's profitability in three years. It was a result of recommendations by international consultants Simat Helliesen and Eichner Inc. (SH&E).
The owner states - Bahrain, Oman and Abu Dhabi - continue to fully support the carrier, said the sources, denying rumours that Oman may follow Qatar in pulling out.
"The Omani Government said that it has confidence in the viability of the company which is considered a pioneering example of joint Gulf action," the sources said.
Qatar decided in July to pull out of the company, and it is expected within days to formally announce its exit.
In August, the company received 30 million dinars ($79.58 million) from the three owner states. The forthcoming meeting will decide if another amount can be pumped into the cash-strapped company."
"The long-awaited Gulf Air board meeting to discuss a strategic plan aimed to float the financially-troubled carrier, has been rescheduled again, company sources said yesterday. The meeting is likely to be held by the first week of January, the sources told Gulf News on condition of anonymity.
The original meeting was scheduled for September 14, but was postponed to the first week of December when owner states requested further consultations with the management, according to a statement issued then by chairman Sheikh Hamdan bin Mubarak Al Nahyan.
The plan, which focuses on marketing and sales and the introduction of several new divisions, is intended to help restore the company's profitability in three years. It was a result of recommendations by international consultants Simat Helliesen and Eichner Inc. (SH&E).
The owner states - Bahrain, Oman and Abu Dhabi - continue to fully support the carrier, said the sources, denying rumours that Oman may follow Qatar in pulling out.
"The Omani Government said that it has confidence in the viability of the company which is considered a pioneering example of joint Gulf action," the sources said.
Qatar decided in July to pull out of the company, and it is expected within days to formally announce its exit.
In August, the company received 30 million dinars ($79.58 million) from the three owner states. The forthcoming meeting will decide if another amount can be pumped into the cash-strapped company."
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I am sure that the employees of GF have absolutely no confidence in their board. They will keep on postponing the meeting indefinately. I think they just don't want to pay what is necessary to get GF out of its problems. It is very sad to see that GF's worst enemy is actually its own board.
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Or maybe it is the possible war against Iraq that's holding the meeting up, the board does not want to take decisions on the future of GF until they have an idea what is going to happen.
A war can change everything dramatically. In the mean time the only thing we can do is just wait. At the moment nothing is coming out, no news. It is VERY quiet. Most probably January will tell. I surely hope something positive will come out, the morale of the crews are rock bottom at the moment
Greetings, GP76
A war can change everything dramatically. In the mean time the only thing we can do is just wait. At the moment nothing is coming out, no news. It is VERY quiet. Most probably January will tell. I surely hope something positive will come out, the morale of the crews are rock bottom at the moment
Greetings, GP76
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Keeping the people at GF hanging by a thread just because of a war that may or may not happen is not right either. I am sure all other regional airlines will be supported regardless. If you look at the performance of the GF board over the years and their track record, I am sure people will agree they are just a totally useless bunch who do more harm than good. It is not just the morale of the crew that are at stake, but for all the 4500 or so employees at GF. I have a feeling that even the passengers might not trust that GF will last long and are starting to go to other airlines for their travel arrangments. What a sad thing to happen to such an airline. 
No Link-The Australian Aviation Section Friday 13th
Key pts:
-negotiating daily services to Sydney. June start date if further due dilligence satisfactory. Hogan hopes to link Gulf's extensive Mid east network to Sydney.
-three year recovery plan to be put to the board next week. Expects to join a major alliance and rebuild the brand.
-10 year fleet plan. Modernise.
-three year return to toptier status.
-1st Class numbers up %22 and Business Class up %39. Economy up %22 and yield %1.3.
If perceived as spin don't shoot the messenger!
Key pts:
-negotiating daily services to Sydney. June start date if further due dilligence satisfactory. Hogan hopes to link Gulf's extensive Mid east network to Sydney.
-three year recovery plan to be put to the board next week. Expects to join a major alliance and rebuild the brand.
-10 year fleet plan. Modernise.
-three year return to toptier status.
-1st Class numbers up %22 and Business Class up %39. Economy up %22 and yield %1.3.
If perceived as spin don't shoot the messenger!
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The pax numbers seem suspiciously high considering GF is about to lose as much as they have last year. Can anyone at GF verify this? Are those numbers year on year or a monthly figure from a recent month?
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I think the figures are highly 'selective' and only represent one particular month of operations (August?).
Plans are to get in with 1-World or STAR, STAR were out here 2 weeks ago, 1W yet to appear. He's looking to cut BD21M off the 2003 budget to run at a BD20M loss that year; suspect the same for 2004 to give black ink on the bottom line of the P&L in 2005.
Great paperwork exercise but seeing as Finance Dept. don't really know there ar$e from their elbow I can't see it happening!
How will the new VBA (Value Based Airline) ex-AUH by June '03 affect GF's operations/profitability? Seeing how it is going to be run by about half a dozen ex-GF VP's and other senior managers who 'retired early!' I doubt the impact will be long term!
Tomorrow will be the CEO's day of judgement. If the board are convinced then I believe the future will be bright and in relatively safe hands. Lets see what the new dawn brings!
Plans are to get in with 1-World or STAR, STAR were out here 2 weeks ago, 1W yet to appear. He's looking to cut BD21M off the 2003 budget to run at a BD20M loss that year; suspect the same for 2004 to give black ink on the bottom line of the P&L in 2005.
Great paperwork exercise but seeing as Finance Dept. don't really know there ar$e from their elbow I can't see it happening!
How will the new VBA (Value Based Airline) ex-AUH by June '03 affect GF's operations/profitability? Seeing how it is going to be run by about half a dozen ex-GF VP's and other senior managers who 'retired early!' I doubt the impact will be long term!
Tomorrow will be the CEO's day of judgement. If the board are convinced then I believe the future will be bright and in relatively safe hands. Lets see what the new dawn brings!
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Just heard on the news that the owner states have agreed to inject 90 million dinars into GF. Good news. There might be a news conference tomorrow, so if anyone is attending this, please keep us posted.
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Gulf Air Back in Business (GDN headline)
To the public:
GDN
To the staff:
18-12- 2002
Dear colleagues
I know that like myself, you have been waiting to hear the outcome of my presentation to the Board and their decision on the future of the airline.
And so it is a great pleasure for me to tell you that the Board members have unanimously endorsed our three-year strategy to restructure Gulf Air, and have agreed to invest the funds that were requested by management in order to help us re-establish ourselves as a leading world airline.
Before I go on to discuss some of the really exciting plans we have for the future, I want to thank you. Thank you for your loyalty; your support and your hard work - in what has been an exceptionally tough period of Gulf Air’s history.
As I have said on numerous occasions, our future rests in your hands. I believe we have turned the corner now. With the backing and endorsement of the Board and the owner states, and your continued energy and enthusiasm, there is no limit to what we can achieve.
And as you know we have achieved a great deal. Our list of achievements to date is impressive. The ongoing improvement in on time performance; the elimination of the passenger reconfirmation requirements; the growing use and application of advanced technology; the successful introduction of the Arabian Experience and the In flight chefs, and increased daily flights to key destinations such as London, Frankfurt, and Paris, are but a few of the highlights to date.
I am confident that we can consolidate and build on the progress of the last few months to create an airline of which we can all be proud: it is, therefore, imperative that we maintain the momentum we have built by ensuring that we keep our ‘foot firmly on the accelerator’.
An ancient proverb says ‘A boat does not move forward if each one is rowing their own way’ We all need to row together if we are to achieve the ambitious plans we have made for Gulf Air.
I know that the last few months have been difficult. The airline is changing; we are changing, and change is never easy, most often because it involves cutting away redundant or ineffective processes and systems.
Moving on, however, it is not all about cutting back or cutting out. It is predominantly a positive process. It’s about putting in place new, dynamic and exciting initiatives that will establish Gulf Air as an innovator in the airline industry – both within the region and the global arena.
Our main focus is on the provision of exceptional customer service. We are going to become known as a customer-driven airline.
You will already have noticed areas in which this has become evident. A brand new First Class menu designed by our in-flight chefs was launched over Eid and new menus in Business and Economy cabins will be introduced in February 2003. In fact the menus are just part of the redesigned Business and Economy Class products and service standards. A refurbishment programme for lounges, more promotional fare offers, the introduction of kiosks providing self service check-in facilities and other technological advances are all part of the customer service enhancements underway.
There are, of course, a number of other innovations which will I believe be instrumental in establishing Gulf Air on a strong commercial basis. I will be discussing these with you at a series of staff forums early in the New Year.
This year has ended on a high note for us and I would like to take this opportunity to wish you and your families a happy and prosperous New Year.
Best wishes
James Hogan
Now a few words from me to Mr Hogan should he read this:
Congratulations on securing this Airlines immediate future.
However, if you are intent on 'change' then (and I have said this before on this Bulletin Board in another thread) if you only ever make one permanent change it must be a change in the attitude of a minority (but significant number) of current staff.
One of the first things I heard this morning from a local employee was:
"Good news in the paper this morning. At least they have pumped in some money again to keep us going. I dont care about profit, that's not my problem. So long as I have a job and they keep paying me a salary I don't care."
CHANGE THAT MR HOGAN!
And if you can't change it GET RID OF IT AND QUICKLY. Please!
GDN
To the staff:
18-12- 2002
Dear colleagues
I know that like myself, you have been waiting to hear the outcome of my presentation to the Board and their decision on the future of the airline.
And so it is a great pleasure for me to tell you that the Board members have unanimously endorsed our three-year strategy to restructure Gulf Air, and have agreed to invest the funds that were requested by management in order to help us re-establish ourselves as a leading world airline.
Before I go on to discuss some of the really exciting plans we have for the future, I want to thank you. Thank you for your loyalty; your support and your hard work - in what has been an exceptionally tough period of Gulf Air’s history.
As I have said on numerous occasions, our future rests in your hands. I believe we have turned the corner now. With the backing and endorsement of the Board and the owner states, and your continued energy and enthusiasm, there is no limit to what we can achieve.
And as you know we have achieved a great deal. Our list of achievements to date is impressive. The ongoing improvement in on time performance; the elimination of the passenger reconfirmation requirements; the growing use and application of advanced technology; the successful introduction of the Arabian Experience and the In flight chefs, and increased daily flights to key destinations such as London, Frankfurt, and Paris, are but a few of the highlights to date.
I am confident that we can consolidate and build on the progress of the last few months to create an airline of which we can all be proud: it is, therefore, imperative that we maintain the momentum we have built by ensuring that we keep our ‘foot firmly on the accelerator’.
An ancient proverb says ‘A boat does not move forward if each one is rowing their own way’ We all need to row together if we are to achieve the ambitious plans we have made for Gulf Air.
I know that the last few months have been difficult. The airline is changing; we are changing, and change is never easy, most often because it involves cutting away redundant or ineffective processes and systems.
Moving on, however, it is not all about cutting back or cutting out. It is predominantly a positive process. It’s about putting in place new, dynamic and exciting initiatives that will establish Gulf Air as an innovator in the airline industry – both within the region and the global arena.
Our main focus is on the provision of exceptional customer service. We are going to become known as a customer-driven airline.
You will already have noticed areas in which this has become evident. A brand new First Class menu designed by our in-flight chefs was launched over Eid and new menus in Business and Economy cabins will be introduced in February 2003. In fact the menus are just part of the redesigned Business and Economy Class products and service standards. A refurbishment programme for lounges, more promotional fare offers, the introduction of kiosks providing self service check-in facilities and other technological advances are all part of the customer service enhancements underway.
There are, of course, a number of other innovations which will I believe be instrumental in establishing Gulf Air on a strong commercial basis. I will be discussing these with you at a series of staff forums early in the New Year.
This year has ended on a high note for us and I would like to take this opportunity to wish you and your families a happy and prosperous New Year.
Best wishes
James Hogan
Now a few words from me to Mr Hogan should he read this:
Congratulations on securing this Airlines immediate future.
However, if you are intent on 'change' then (and I have said this before on this Bulletin Board in another thread) if you only ever make one permanent change it must be a change in the attitude of a minority (but significant number) of current staff.
One of the first things I heard this morning from a local employee was:
"Good news in the paper this morning. At least they have pumped in some money again to keep us going. I dont care about profit, that's not my problem. So long as I have a job and they keep paying me a salary I don't care."
CHANGE THAT MR HOGAN!
And if you can't change it GET RID OF IT AND QUICKLY. Please!
Last edited by Icarus; 19th Dec 2002 at 04:35.
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Much the same from UAE Papers(19/12)"
Gulf News:
"A crucial plan to revive Gulf Air was likely approved by the long-awaited board meeting that was concluded here last night, a company official said.
At the meeting, Gulf Air president and chief executive, James Hogan, presented an ambitious $130 million three-year turnaround plan that would see the debt-ridden national carrier of Abu Dhabi, Bahrain and Oman make profits again.
The outcome of the crucial meeting will not be officially announced before this morning. However, an official told Gulf News the management was '90 per cent sure' that the board will approve the plan.
The meeting, scheduled originally for September 14, was rescheduled twice because the owner states had requested further consultations with the management over the proposed plan.
The plan was drawn up with the help of international consultants Simat Helliesen and Eichner Inc. which had been appointed by the board earlier this year to make recommendations for restructuring and restoring the company's profitability.
Last month, current chairman of the board, Sheikh Hamdan bin Mubarak Al Nahyan said the shareholders continued their full financial support to the carrier, as an ongoing concern, which represents a major Gulf joint venture in the region, contributing to the enhancement of the overall development process, and serving the peoples of the region, through distinguished air transport services."
...and Khaleej Times
MANAMA - State owners of regional carrier Gulf Air decided yesterday to inject 90 million Bahraini dinars ($238.7 million) into the troubled airline to add to $81.7 million they pumped in earlier this year. "The board of directors agreed on the future plan for the company and also agreed on immediately injecting 45 million dinars in the company by the three owner states equally," said airline Chairman Shaikh Hamdan bin Mubarak Al Nahayan.
"The remaining amount will be covered next year," he told reporters. "The funds pumped into the capital will cover the financial deficit of the company," he added. Owner states Bahrain, Oman and Abu Dhabi emirate of the United Arab Emirates decided in May to inject Dh300 million ($81.7 million) immediately into the debt-ridden airline after Qatar pulled out from the company. They also agreed to freeze $146 million of Gulf Air"s debts from the end of May until the December board meeting.
Yesterday"s meeting in Bahrain also agreed a three-year plan to ensure the growth and eventual profitability of the airline, which has total debts of $800 million. "This is good news for Gulf Air and we are back in businesss," said airline chief executive James Hogan. The 50-year-old airline - left reeling after a fatal crash in 2000 and stung by global aviation turmoil - said earlier this year it expected to move into the black within three years thanks to hefty injections by the owner states.
"Gulf Air has already arrested a year-on-year trend in yield decline," a company official told Reuters. "The airline expects to reduce losses during years 1 and 2 (2002 and 2003), and to break even and return to profitability in year 3 (2004)." The company, which faces stiff competition from Dubai-based Emirates airline, made a net loss of $98 million in 2000 after posting net profits of $1.1 million in 1999 and $10 million in 1998. It has yet to report results for 2001. The three-year turnaround programme at Gulf Air, which has a fleet of 30 aircraft, includes adding new destinations and providing non-stop services from all key destinations to Abu Dhabi, Bahrain and Muscat.
"Gulf Air"s growth plans for the fleet...include incremental growth of the single-aisle aircraft fleet, with additional units being sourced for 2003, 2004 and 2005, and incremental growth of the wide-bodied aircraft fleet, with additional units being sourced for 2003, 2004 and 2005," the official said. It plans to hold talks with Boeing Co and Airbus in January on a 10-year fleet upgrade plan. - Reuters
"A crucial plan to revive Gulf Air was likely approved by the long-awaited board meeting that was concluded here last night, a company official said.
At the meeting, Gulf Air president and chief executive, James Hogan, presented an ambitious $130 million three-year turnaround plan that would see the debt-ridden national carrier of Abu Dhabi, Bahrain and Oman make profits again.
The outcome of the crucial meeting will not be officially announced before this morning. However, an official told Gulf News the management was '90 per cent sure' that the board will approve the plan.
The meeting, scheduled originally for September 14, was rescheduled twice because the owner states had requested further consultations with the management over the proposed plan.
The plan was drawn up with the help of international consultants Simat Helliesen and Eichner Inc. which had been appointed by the board earlier this year to make recommendations for restructuring and restoring the company's profitability.
Last month, current chairman of the board, Sheikh Hamdan bin Mubarak Al Nahyan said the shareholders continued their full financial support to the carrier, as an ongoing concern, which represents a major Gulf joint venture in the region, contributing to the enhancement of the overall development process, and serving the peoples of the region, through distinguished air transport services."
...and Khaleej Times
MANAMA - State owners of regional carrier Gulf Air decided yesterday to inject 90 million Bahraini dinars ($238.7 million) into the troubled airline to add to $81.7 million they pumped in earlier this year. "The board of directors agreed on the future plan for the company and also agreed on immediately injecting 45 million dinars in the company by the three owner states equally," said airline Chairman Shaikh Hamdan bin Mubarak Al Nahayan.
"The remaining amount will be covered next year," he told reporters. "The funds pumped into the capital will cover the financial deficit of the company," he added. Owner states Bahrain, Oman and Abu Dhabi emirate of the United Arab Emirates decided in May to inject Dh300 million ($81.7 million) immediately into the debt-ridden airline after Qatar pulled out from the company. They also agreed to freeze $146 million of Gulf Air"s debts from the end of May until the December board meeting.
Yesterday"s meeting in Bahrain also agreed a three-year plan to ensure the growth and eventual profitability of the airline, which has total debts of $800 million. "This is good news for Gulf Air and we are back in businesss," said airline chief executive James Hogan. The 50-year-old airline - left reeling after a fatal crash in 2000 and stung by global aviation turmoil - said earlier this year it expected to move into the black within three years thanks to hefty injections by the owner states.
"Gulf Air has already arrested a year-on-year trend in yield decline," a company official told Reuters. "The airline expects to reduce losses during years 1 and 2 (2002 and 2003), and to break even and return to profitability in year 3 (2004)." The company, which faces stiff competition from Dubai-based Emirates airline, made a net loss of $98 million in 2000 after posting net profits of $1.1 million in 1999 and $10 million in 1998. It has yet to report results for 2001. The three-year turnaround programme at Gulf Air, which has a fleet of 30 aircraft, includes adding new destinations and providing non-stop services from all key destinations to Abu Dhabi, Bahrain and Muscat.
"Gulf Air"s growth plans for the fleet...include incremental growth of the single-aisle aircraft fleet, with additional units being sourced for 2003, 2004 and 2005, and incremental growth of the wide-bodied aircraft fleet, with additional units being sourced for 2003, 2004 and 2005," the official said. It plans to hold talks with Boeing Co and Airbus in January on a 10-year fleet upgrade plan. - Reuters
