Bahrain to continue to back Gulf Air, but carrier may emerge radically changed

Gulf Air will continue to fight another day. After months of uncertainty over the outlook for the carrier, the Bahrain Government and the National Assembly have agreed to invest additional funds to keep the carrier afloat, according to a report in the state-run Bahraini News Agency. However, even if it does get the funds, Gulf Air may emerge from its latest bailout package a radically changed entity.

At a meeting involving Bahrain's Deputy Premier, Finance Minister, Transport Minster and the heads and chairmen of parliamentary blocs and committees and members of Financial and Economic Affairs Committees this week, it was decided that Bahrain will continue to provide long-term financial support for the airline. The Shura and Representatives councils - the two chambers of the National Assembly - have informally agreed to a Bahraini Government request to pump additional funds into the airline to allow it to settle some debts and dues.