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Gulf Air anticipates USD300m loss in 2010

23-Aug-2010 11:06 AM

Gulf Air CEO, Samer Majali, stated the carrier plans to reduce its USD500 million loss in 2009 to USD300 million in 2010, with this figure expected to halve in 2011 and be close to break-even in 2012 (TradeArabia News Service/Gulf News, 20-Aug-2010). Mr Majali added despite a 33% increase in fuel prices over the past seven months, which has cost the carrier USD56 million, it is on course with its cost reduction plan, and has reduced its staff levels by approximately 1,000 (or approximately 20%) over the past 12 months as part of these efforts. The carrier is also focusing on finding its niche in the Middle East market.

Gulf Air: "We are competing with three mega carriers in the region in Emirates, Etihad and Qatar Airways and we are trying to find our own niche. We have the biggest network in the region, the largest number of flights and the largest number of destinations. We now have fewer long-term destinations, having cut some India flights, but we have more short-term destinations. We found it difficult to compete on some of those Indian destinations and concentrate on where we want to play," Samer Majali, CEO. Source: Gulf News, 20-Aug-2010.