Bahrain backs Gulf Air
BAHRAIN: The government of Bahrain plans to inject up to US$1.33 billion in Gulf Air, according to reports from the Middle East.
Bahrain will also increase its stake in Gulf Air to 80 per cent from 50 per cent, leaving Oman with a 20 per cent stake in the airline.
From the 1970s, Gulf Air was the joint carrier of Abu Dhabi, Bahrain, Oman and Qatar, but Gulf Arab states have increasingly moved towards creating their own national carriers.
Abu Dhabi and Qatar pulled out of Gulf Air and have their own airlines, Etihad Airways – now headed by former Gulf Air CEO James Hogan – and Qatar Airways.
Gulf Air has appointed Andre Dose, the former chief executive of Swiss Air, as its new CEO. He will take the helm on April 1.
Gulf Air is currently in negotiations with Boeing and Airbus to acquire new aircraft with a decision expected soon. In January, acting chief executive Ahmed Al Hammadi said the airline would be replacing nine Boeing 767s in the first phase of a plan to overhaul the entire fleet of 34 planes.
Apart from updating its fleet, Bahrain’s investment will allow Gulf Air to increase its international routes. Recently the carrier added Pakistan and Islamabad to its list of destinations and increased its flights to Muscat and London.
This week Gulf Air and Saudi Arabian Airlines agreed to further strengthen and expand their code share alliance.
It follows a similar partnership between Gulf Air and Philippine Airlines on selected routes to the Middle East and other destinations.
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Ian Jarrett
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