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FINANCIAL NEWS
Bahraini Gulf Air to obtain USD491m financial aid from gov’t
16 Oct 2012
(MENAFN) Bahrain Gulf Air’s CEO, Samer Majali, stated that the carrier is set to receive USD491 million financial aid from the government, following a royal decree issued by the country’s King to help the company in its restructuring plan, reported Arabian Business.
The amount would be used to pay Gulf Air suppliers, to pay its debts and for restructuring.
In January, reports said that the Bahraini government was considering several options concerning the state-owned loss-making carrier, including dissolving or shrinking it, or selling it and establishing a new airline at a cost of nearly USD1 billion.
On the other hand, Majali said that in the first 6 months of the year, the firm’s revenues rose 6 percent from a year earlier, even though the political unrest that swept the tiny Gulf Kingdom hurt the carrier’s business.
It is worth noting that Gulf Air posted a jump of 13 percent in passenger traffic in the January-June period, whereas seat load factors went up 5 percent to 77 percent.
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