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FINANCIAL NEWS
Bahrain ministers call for struggling Gulf Air support
17 Mar 2012
(MENAFN) Bahraini government has been called to support its national flag carrier Gulf air with USD1.76 billion aid to help cope with its current hurdles, Reuters reported.
In a meeting, finance minister Sheikh Ahmed bin Mohammed al-Khalifa and transport minister Kamal bin Ahmed Mohammed said the government should help Gulf Air and include it in the budget of the 2012 fiscal year to boost the airline’s capital.
The ministers cited that Gulf Air was a backbone of the national economy through its role in linking Bahrain to other countries and providing jobs.
In January, a government delegation briefed parliament and called for a restructuring of the company for “effective operational requirements”.
Gulf Air was hit by falling passenger numbers following a more-than-a year political unrest started by the Shi’ite Muslims.
The airline said it would downsize operations and seek cash from government funds to sustain operations.
The airline also said previously it could tap Bahrain’s sovereign wealth fund Mumtalakat, which is a stakeholder.
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