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Gulf Air announces restructuring strategy

17-Jan-2013 9:28 AM

Gulf Air announced (16-Jan-2013) a three-year restructuring strategy designed to make the carrier more efficient and strengthen its core services by optimising its fleet and network, streamlining its organisational structure and re-engineering its internal processes. The strategy is focussed on reducing costs, improving yield, increasing revenue and reinforcing the airline's position as a national infrastructure asset. Gulf Air plans to strengthen its Middle East and North Africa operations, maintain strategic links with selected European, Far East and Indian subcontinent markets and move away from low-yield transit markets to concentrate on high-demand, high-yield point-to-point routes. The carrier will simplify its fleet and rationalise its workforce to meet the operational, maintenance and administrative demands of the revised network. The airline aims to reduce costs by 24% and increase RASK by 9% by the end of 2013 through improved revenue management and sales, frequency adjustments and route cancellations. Bahrain Deputy Prime Minister Khalid bin Abdulla Al Khalifa said, "The restructuring and subsequent financial rehabilitation of Gulf Air will liberate treasury resources for domestic investment and result in a transformed national carrier." [more - original PR] [more - original PR - II]