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FINANCIAL NEWS
Bahrain- Gulf Air to reduce costs in 2013
16 Jan 2013
(MENAFN) Bahrain’s Gulf Air’s chairman, Sheikh Khalid bin Abdulla Al Khalifa, announced that in 2013, the loss-making carrier will reduce costs by 24 percent, reported Arabian Business.
Sheikh Khalid said that the airline, which in 2012 removed 8 non-performing routes, is focusing on routes in the Middle East and North Africa (MENA) region, in addition to selected European and Asian destinations.
The national airline has been negatively affected by rising competition from Emirates Airline, Qatar Airways and Etihad Airways, as well as the Arab Spring that swept the tiny Gulf Kingdom.
At the current time, Gulf Air is undergoing a restructuring program that will take 3 years, and includes cutting costs, staff and routes.
The company plans to reduce its overall workforce by 1,800, with the move expected to save 24 percent of costs by the end of the year.
It is worth noting that Gulf Air would see it revenue per Available Seat Kilometre (ASK) growing 9 percent in 2013 through enhanced revenue management and sales, frequency adjustments and route terminations.
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