Gulf Air to close four routes, to Damascus, Athens, Milan and Kuala Lumpur

Gulf Air announced (14-Feb-2012) the suspension of services to Damascus, Athens, Milan and Kuala Lumpur, ending the underperforming routes due to "commercial reasons". Services to Damascus will be stopped from 02-Mar-2012 while flights to Athens and Milan will be cancelled from 12-Mar-2012 and Kuala Lumpur will cease 25-Mar-2012. This follows the announcement of the closure of Entebbe and Geneva routes earlier this month. Gulf Air said the move comes as the airline seeks to address the economic challenges faced in recent times, in particular, the local and regional political situation, the high price of fuel and low passenger numbers. The decision has been taken to allow the airline to use its fleet and resources in the most efficient way by concentrating on high-demand, high-yield routes to ensure its core customer base is served effectively. [more - original PR]

Gulf Air: “Our commercial strategy, developed in 2009, delivered significant gains in 2010 but last year has been challenging. Therefore, we are now adapting our approach to address the challenges on an urgent basis,” Samer Majali, CEO. Source: Company statement, 14-Feb-2012.

You may also be interested in the following articles...

• Gulf Air CEO resigns, parliament replaces board; a challenging outlook faces the airline
  10-Dec-2012

  As another Gulf Air CEO has come and gone, the Bahraini government again picks up the task of plotting a new path for the formerly multi-national airline.

  The carrier’s board announced on 29-Nov-2012 that it had accepted the resignation of widely respected airline executive, Mr Samer Majali – which he submitted earlier this year – following the appointment of a new Gulf Air board in mid-Nov-2012. Mr Majali will remain in his position until the end of 2012.

  And so the troubled and politically muddled airline stumbles onwards with continuing political meddling and no clear direction for its future. With Mr Majali's departure, the prospects for Gulf Air's recovery become even more slender.

  In a parallel development, the Bahrain Parliament has also voted to replace the carrier’s entire board as well as wiping out two external consultancy contracts. A new board has been announced, led by the deputy premier and consisting of a mix of Bahraini parliamentarians, advisors to Bahrain’s royal court and representatives from the Bahrain Mumtalakat Holding Company, which has ownership of the carrier.

• Gulf Air turn around plan offers a glimmer of hope for the beleaguered flag carrier
  2-May-2013

  Gulf Air’s latest attempt at a turn around, launched in late 2012, appears to be quickly producing concrete results for the struggling Bahraini national carrier. The latest in a long line of revival attempts, the plan has dramatically downsized the Gulf’s oldest airline in an attempt to end the years of heavy losses.

  At the end of 1Q2013, Gulf Air announced it achieved a 21% cut in overall costs during the quarter, crediting the improvement to a reduction in aircraft leasing fees, cuts to flight-related charges and staff expenses and the closure of loss-making routes.

  Yields were up 21% year-on-year in the quarter, thanks to stronger traffic demand in the region and significantly higher sales in Bahrain, as well as its broader fleet and network restructuring. As a consequence, the carrier reported that losses in 1Q2013 were approximately half what they had been in 1Q2012.