Gulf Air: Qatar/Oman refuse new funds
 

From the Gulf Daily News, 3rd May 2002.

Setback for airline
MANAMA

Qatar and Oman have declined to pay more capital to bail out Gulf Air.

"Qatar and Oman have officially refused to grant (more) funds demanded" to help financially stricken Gulf Air, also owned by Abu Dhabi and Bahrain, an airline official said.

He said talks between Gulf Air management and Abu Dhabi were ongoing.

"Abu Dhabi has not yet spoken but it says, in principle, that it stands by the company."

According to the official, the Gulf Air board of directors "could meet next week."

Gulf Air asked the four owner states during an emergency meeting in Abu Dhabi on April 22 to increase its capital by $272.5 million (BD103m) in a bid to overcome a crisis worsened by the September 11 attacks in the US.

The government representatives then met again on April 30, but an expected announcement on the airline's fate was not forthcoming as the officials had received no directives from their governments.


http://www.gulf-daily-news.com/Artic...=22185&Sn=BNEW

Just heard that Bahrain's going to buy the whole thing.:cool:

A source? Didn't think there was anything to buy: only 'assets' are the traffic rights which AFAIK are controlled by the owner states?

AFAIK ? ? ?

AFAIK....As Far As I Know

Interesting one this now.
If Oman/Qatar are not going to invest and either Bahrain or Bahrain/Abu Dhabi continue then Oman and Qatar will want ther share holding bought; which is worth one quarter of about -380 Million!
So instead of paying in 25 million or thereabouts, they shall have to cough up almost 95 million to pay their share of the debt in order to leave!
I guess this is (one of the reasons) why GF is in so much trouble; obviously the board cannot see beyond the end of their noses or think much beyond the next few hours!

Anyhow, it's about time these two moved away as they are the biggist culprits to GF's demise.
As for traffic rights etc; so what. Maybe it's about time GF shrank back a little, consolidated and then come back with a vengance; this will be possible through one owner (Bahrain) although the airport will need sorting out if it is to operate as a proper hub. (Raymond take note!! ;) )

Thanks. Good luck.:)

Watch out for a Far Eastern influence

I heard a rumour - I guess this is the best place for it, that Singapore have offered to manage the airline, this in the same week as they sign a FF pact with Emirates

Aren't SH&E already "trying" to manage the airline? Any inside info on them? If Qatar and Oman do not pay up, will SH&E stay?

If there is any money/useful position to be made from it then I imagine SIA would love to offer a management contract to Gulf Air.

Having worked a considerable length of time with both airlines I can realisitcally say that the Flight Deck and Cabin Crew have nothing to fear should such a management contract become reality.

On the other hand there are several hundred others in what they perceive as 'safe jobs' who might wish to consider an alternative career!

So if SIA comes into manage GF we could have a situation of where one airline that doesnt know if it is rightside up, in tight turns, being directed one that doesnt know its left from its right, in the dark......!!

If you get my drift.....

Should be interesting in the near future...

Should get BA to come back in a part owner / alliance partner and call it 'Gulf Aviation'....now there is a thought?

;)

My goodness scanscan - I think you wrote that after a few at the rugby club. True however.

If they decide to liquidate the airline, how different will the company be if they hire all the 'useless' people back? The people who know their jobs are very few, and are way outnumbered by the 'useless' ones. In addition to all that, politics rules in the Arab world particularily at GF. So then what?

I can see the scenario that Scan Scan(hic!)Scan mentions as working in some parts of the world but somehow, for the political reasons mentioned above, I don't see it happening in Bahrain.

Was "Jack" still alive when the accident happened? Was it him or his son that gave the assurance that the report would be issued pronto?

gulf_slf
If you can find four Herons, four Doves, a load of surplus khaki uniforms and some boozy old pilots you will have the makings of a happy new outfit. You could call it: Gulf Aviation 2002

....and a chap called Lawrence...!

Try - Alan Bodger!

Don't think funds availability is the problem....just convincing the folks forking it over that this time will be different.....hope it is..

New CEO for GF
 

News has it that Al-Hamer is out and the new Persident and Chief Executive might be James Hogan. Can anyone from GF confirm this?

Yes.
Fax from Shk Hamdan UAE to all GF VP's received earlier today (about 5 hours ago) confirms the appointment effective from Sunday 16 May as Acting PCE.

I just have one question than:

How does it happen that GF is actually in the recruitment process for 80 additional A320 crews stationed in BAH?:confused:

Gulf Air names new chief executive
Posted: Tuesday, May 07, 2002

MANAMA:



Regional airline Gulf Air has named James Hogan as its acting president and chief executive of the airline effective May 12.

The appointment was announced by Gulf Air chairman Shaikh Hamdan bin Mubarak Al Nahyan, who said Hogan was chosen after consulating the ministers of the four owning states -- Bahrain, Qatar and Oman and the Abu Dubai emirate of UAE.

Hogan has years of experience in the aviation industry in senior positions. Most recently, he was the chief executive Officer of Ansett Airlines in Australia and Bmi British Midlands Airways, UK.

"I would like to thank Mr Ibrahim Al Hamer for his continued dedication and support in developing the airline and also for his cooperation during his presidency," Shaikh Hamdan said. "Hogan was selected from numerous candidates for his experience and aviation background. I trust you will all give him your complete support as he begins the restructuring as directed by the board," Sheikh Hamdan told the airline staff.

A statement from Gulf Air said the appointment would add impetus to its restructuring process that began in March.

Industry sources estimate Gulf Air's debt at $800 million.

The troubled airline is seeking a $272.5 million capital injection from the owning states to save it from insolvency.-- TradeArabia News Service

http://www.tradearabia.com/routes/tr...?Article=34761

Australian new chief at Gulf Air
 

So who the hell is James Hogan anyway, Is he perhaps the brother of Paul? He'll have to have a big sense of humour:D :D :D

Gulf Air to become new Hogan's Heroes!!!

;)

Brakedwell,

I know a few old stalwarts who fit the bill .... a couple rusting away in the west country and another in Croydon and one in Australiia..

Have to get the old man measured to see if he still get into his khaki shorts ...and had better return the GF flying jacket I nicked off him in my teenage days....the females loved it....!!

Had better hurry if you want to get them together again ...if only for a few beers down at the Sailing Club !!!

Pip! Pip!

And still....what about the big recruitment going on right now.

Could it be that the are ending all the old contracts because they are too expensive and do they want to replace those with new contracts or ar they just expanding as well which makes place for 80 additional crews???

80 crews corresponds with 16 additional aircraft!!!!!Still seems a lot to me!
:eek: :confused:

Troubled Middle Eastern airline Gulf Air is awaiting confirmation from two of its shareholders that they will provide extra cash to help rescue the carrier following a downturn in business since 11 September. The governments of both Qatar and Oman failed to respond by a 30 April deadline set by the Gulf Air board for an emergency cash injection of $258 million. The other two major shareholders, Abu Dhabi and Bahrain, have already agreed support.

Abu Dhabi and Bahrain are the main hubs for Gulf Air - the region's oldest airline - and have provided the most financial support for the airline's growth. Over the past decade, Oman Air and Qatar Airways have developed as national carriers for the other two shareholders, and analysts in the region believe there is greater government support for these carriers than for Gulf Air.

Bahrain's prime minister Sheikh Khalifa bin Salman al Khalifa has been quoted by official news agency BNA as being firmly committed to the survival of Gulf Air. He told the Bahrain cabinet on 28 April that the carrier represented "a symbol of co-operation and solidarity among member states of the Gulf Co-operation Council", which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

The carrier has already had a $160 million cash bail-out from the shareholders since 11 September, and has called in consultants Simat Helliesen & Eichner to look at cost-cutting and restructuring. Local sources say that almost 500 staff will be laid off as part of the proposed changes, although Gulf Air will not confirm this.

(FlightInternational, 7 May 2002)


:confused: :eek:

Sources say that over 350 have already left through 'early retirement'. Not sure if there are more still to go. Many cabin crew have already been let go too.

From etravelblackboard.com:

Hogan Rises High in CEO's Estimation

The man who almost ran Ansett, James Hogan, seems to have found a boss with deeper pockets than one-time Tesna saviours Solomon Lew and Lindsay Fox. And, in a neat turn of events, it's an employer who is happy to credit Hogan for his "almost" effort.

In a press release to announce Hogan as the new president and CEO of Gulf Air, the airline's chairman, Sheikh Hamdan bin Mubarak Al Nahyan, gave his tenuous tenure at Ansett a little more wings than it had. "Prior to this engagement he was the chief executive officer of Ansett Airlines in Australia and BMI British Midlands Airways, UK," it stated.

Hogan was appointed by Lew and Fox in January to run a relaunched Ansett before the Melbourne millionaires bailed out in February.

Having left his post as chief operating officer at British Midlands last August after a fall-out with chairman Sir Michael Bishop, Hogan will be hoping for clearer skies at Gulf Air.

Then why are they still hiring???????

SH&E recommend a further 5% reduction in staff, which will not likely affect productivity as more than 5% are unproductive on a daily basis anyway!
Or is it to release funds for the new BHD38,000 per month CEO?

Let's hope he is worth every penny and we get more than 'one more year of hope' just like the last 12 months.
All talk,very little action, lots of indecsion when faced with tough choices, and continued nepotism from those on the top two tiers.

Hopefully this tough/brash Aussie will sort it out!

Let's hope that there really will be 'clear skies' ahead.

Icarus (with a 'c'!) :D

Wow! If the new CEO is getting BH.D. 38,000 a month, and the new Finance guy probably in the same ballpark range, no wonder GF needs a cash injection every year.

You sure it's not US$38,000 rather than BD?

The finance guy is on US75,000 per month I understand, for 6 months and is tasked with finding a permanent replacement as VP Finance.
The new boy has supposedly had 'cash up front' as a part of the deal due to GF being 'high risk'!, the right to bring in his own team at the top as well.

Yes it is a lot by any means, but then many other CEO's in Europe/US are being paid more than that with stock options on top. There are no stock options with GF (and besides if you held any you would be a fool as they are currently worth less than nothing!).

Again, this is only what I have heard over the last few days, but I have no reasons to doubt the sources, but that does not say that I am (or they are) right.

And that's nothing to what "disappears" from GF's kitty every month. It doesn't really matter who's the boss - they have to have the authority to put a stop to this sort of thing, or they might as well not bother.

:confused:
By golly, 30k of Bahraini Dinars is U.S.$ 100700
Now that is somewhat far fetched for any guy at any position for a months' work. Anywhere.
Of course, if there are any such places, please do let me know - I will strive for them in my next life!
By the way, Icarus, you were a manager in GF in the past. Do you still retain a position ?

Still am (at least this week! :D )

So what are the people at GF saying about SH&E? Do they know their stuff, or are they full of 'hot air'?

What do people have to say about anything?
Mixed views I guess.
Are you asking for mine?

One has to understand the reasons behind why a body of consultants have been brought in I guess.

Some (very senior) staff here are being as 'un-cooperative' as possible towards them, some are working very hard with them to make things better. I hope there are more working with them than against them!

This is (i.e. they are) a life line for GF, anyone who constructively works against that is not working in the best interests of the company overall; but then again, that is why GF is in a mess anyway; too many people looking after their own interests. I do not believe there is or has been 'massive corruption' in the lead up the mess GF are in. I believe it is more down to irresponsible management and a number of high level staff continuously wishing to play 'Mr Nice Guy' and to not deal with issues that require them to face the truth. This is far more damaging (especially long term) than creaming off a bit of cash (which I do not condone at all). Empire builders and control freaks who surround themselves with 'Yes Men' so that their own inablilities/inefficiencies are never exposed are more a threat to the overall health and prosperity of any company and its employees in my eyes; and GF has far too many of these people, some have been here a long time, some have only been here perhaps 15 months or so!

If SH&E and the new Chief have 'carte-blanche' then this will be (mostly) rectified.
If GF can find the "Political Will' to do what is right, even if it is a tough call and their mates wont like them anymore, then GF will not only survive, it will prosper.

Oh, and of course, someone will need to take a very sharp knife to a number of departments living on the third floor and bring people in who know what they are doing!

From the Gulf News:

Gulf Air all set to unveil new strategy
Manama |By A Correspondent | 14-05-2002
Print friendly format | Email to Friend

The management of cash-strapped Gulf Air is expected to unveil its strategy in a few days, news reports said yesterday.

The new president and chief executive, James Hogan, took over Sunday from the outgoing president, Ibrahim Al Hamer, said a report by English language daily The Bahrain Tribune.

Hogan, an Australian, spent a busy couple of days with top officials at the airline headquarters in Manama will very soon announce his new strategy that will include route structure, schedules and fleet, engineering and maintenance, finance and human resources and "issues related to achieving the overall objective to make the airline commercially viable," said the report.

The board of directors appointed the international consultants Simat Helliesen and Eichner, Inc (SH&E) to make recommendations for restructuring and restoring the company's profitability.

In the last few months, the SH&E has conducted a comprehensive assessment of the airline's business processes and strategies.

It was given a mandate by the board to develop and manage an action plan for restructuring with the goal of ensuring the airline's long-term viability and its ability to cope with the increasing competition for high quality air services in the rapidly growing Gulf region.

In line with the strategy, the airline announced a few months back an early retirement package for long-serving employees of the four owner states - the UAE, Bahrain, Qatar and Oman, to cut jobs as an austerity measure.

http://www.gulf-news.com