Bahrain Air announced plans to reduce scheduled services to Damascus and Amman and suspend all services to Najaf, Baghdad, Mashhad and Beirut until 20-Jun-2011 as it struggles to cover costs to these destinations which have been affected by political violence (TradeArabia News Service, 04-Apr-2011). The company is experiencing a decline in passenger numbers and an increase in the costs of fuel and insurance, according to managing director Ibrahim Abdulla Al Hamer. The carrier also announced that it will be receiving its fifth aircraft on 08-Apr-2011, to be operated to Sharm el-Sheikh from 15-Sep-2011. The carrier is also planning to launch its new booking system on 05-Apr-2011 and its new frequent flyer programme in Jun-2011.
Bahrain Air: "From mid-February until now, the company's revenue has been affected by the unfortunate political events that the region has been going through in general and in Bahrain in particular. This low revenue is attributed to the decrease in passenger traffic due to the reluctance of businessmen, workers and visitors to travel to Bahrain and the region in general. This is in response to directives issued by some embassies to their citizens and the negative and exaggerated media coverage about the events. The development of events has occurred during the same time that has witnessed a drastic increase in cost, which has reached to more than 35%. It includes the increase in costs of aviation fuel and insurance at some airports, to the extent that the revenue from some of the destinations does not even cover the direct costs. Now the situation is starting to stabilise and flourish in the market. We have great confidence that the situation in our beloved Bahrain will return to normal or even better," Ibrahim Abdulla Al Hamer, MD. Source: TradeArabia News Service, 04-Apr-2011.