By
Dr. Wolfgang H. Thome, eTN Uganda
(eTN) - The long awaited approval by the Bahraini government of
nearly half a billion US Dollars injection into Gulf Air might have
stark consequences, when, according to a source from Manama, the matter
comes to the kingdom’s parliament for discussion. Worst case scenario
projections are that apart from flights to London and Paris all other
long haul destinations may have to go, in a move reminiscent to Air
Seychelles of late last and early this year, where all long haul
destinations were axed.
Such a radical cut could also see a major reduction of the airlines’
staff, from the present 3.800 to below 2.000. Pending aircraft orders,
that include at least 20 Airbus A330 and some 16 Boeing 787 Dreamliners,
may also be under review.
The flights to Nairobi would be of immediate concern in East Africa
though. Unlike the flights to Entebbe, axed in early 2012, Nairobi route
is doing very well but may nevertheless be under review, as part of an
overall restructuring of Gulf Air. The airline has many faithful
travelers from not just Kenya but across Eastern Africa who connect onto
the GF flights in Nairobi, persuaded by excellent in-flight service,
attractive fares, and easy transfers via Bahrain’s airport.
Some aviation pundits are already predicting that GF will eventually
need to reduce to a regional carrier level, serving what remains to be
the largest network across the Gulf, a move which however would require
teaming up with other airlines, who would need to feed long haul traffic
via Bahrain.
A statement by Gulf Air welcomed the capital injection which will
allow meeting debt obligations and ‘meet its future restructuring costs.
Working together with the government of Bahrain and its shareholder,
Mumtalakat Holding Co., to review its existing fleet and network, Gulf
Air will implement an accelerated strategy and aggressive restructuring
program to achieve more dramatic cost and liability reductions’.