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Gulf Air could be dissolved, sold to a third party or downsized, according to a report in Gulf Daily News (GDN).
Confidential documents were leaked to the newspaper, revealing that four options are being considered for the loss-making national carrier of Bahrain, with a final option to continue normal operations with government support.
Selling Gulf Air and launching a new national carrier would cost the country BD460 million, GDN reported, while downsizing operations could lead to a BD600 million bill, including the cost of terminating international agreements and making employees redundant.
A joint parliament and Shura Council committee formed on Monday has now been tasked to study the government proposals, added GDN, the members of which will be announced today.
"Common with other carriers around the world, Gulf Air's business has faced challenges in recent times. A combination of unprecedented regional and economic factors has made business increasingly difficult, in particular the regional political situation, the high price of fuel, low passenger numbers and the suspension of a number of destinations,” explained a Gulf Air spokesperson earlier this week.
"In light of this and further to a statement by the cabinet, Gulf Air can confirm that the senior management team, with the support of the government and its shareholder, Mumtalakat, is initiating additional measures aimed at securing Gulf Air's long-term sustainability, as well as actively addressing the airline's loss-making position."
Related article: Airshow places Bahrain back on global aviation map
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FEATURED COMMENT
This is no surprising news whether there's turmoil or not. Gulf Air's service (or lack of it) is so bad I cursed the d