GMG Airlines confirmed (28-Mar-2012) plans to exit wide-body aircraft operation and re-focus on high growth domestic and regional routes using new narrow-body aircraft instead of existing Boeing 767 equipment. GMG Airlines is planning to adopt a new business strategy in light of rising fuel prices and a changing international competitive environment through a "360 degree restructure of its strategy, organization, fleet and business model". It will redesign its route network to focus on higher yield, higher growth domestic and regional routes using new narrowbody aircraft. CEO Sanjiv Kapoor noted its domestic and regional focus, covering south, southeast and near east Asia, is occurring amid a "rapid rise of Middle-Eastern airlines in recent years with their access to advantaged sources of funding, advantaged location, large scale, and lower cost base (esp. lower fuel costs and taxes)". Mr Kapoor added, "As we transit to the new strategy, our operations will be temporarily suspended with effect from March 30, as we await the delivery of new generation aircraft, clear legacy issues, execute the rightsizing and organize ourselves better to take up the future challenge". During this period of suspension, all ticketed passengers will be given a full refund and employees will be paid compensation benefits in accordance with the labour law. The airline is taking necessary steps to retain all of its AOC, route rights, frequencies and will be in full co-ordination with regulators, stakeholders and passengers. The carrier expects to resume operations "later in 2012". The airline since Feb-2012 has scaled back its operation, which included the following sectors prior to the suspension of service: Dhaka–Kolkata; Dhaka–Chittagong–Kolkata; Dhaka–Chittagong; Dhaka–Cox’s Bazar. [more - original PR - restructuring] [more - original PR - shutdown]
GMG to exit wide-body aircraft operation and re-focus on high growth domestic and regional routes
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