Gulf Air, the flag carrier of Abu Dhabi, Bahrain, Oman and Qatar, is to receive a capital injection of BD60 million (US$159.2m) from the four shareholding states, each immediately paying one-quarter (BD 15m) of the total amount immediately.
The injection of capital was announced following the quarterly Board Meeting in Abu Dhabi on May 30. In response to the decision, the President and Chief Executive of Gulf Air, H.E. Ibrahim Abdulla AlHamer, said: “The decision is most welcome and demonstrates very clearly the support and commitment of the owner states towards the company.”
Mr. AlHamer continued: “The new management team at Gulf Air is very eager to implement plans for restructuring, rationalisation and our medium-term strategy to restore the airline to profitability within 18 months. This injection will enable us to proceed speedily and effectively.
“Our longer-term plan is to reposition the airline in response to market and industry trends,” said Mr. AlHamer. “Earlier this year we identified key areas for improvement in order to achieve more positive results. Among these was our on-time performance, which I am very pleased to report is now at the rate of 90 percent of flights departing within 15 minutes, much higher than the industry norm.”
Mr. AlHamer concluded: “The Board of Directors has given a specific mandate to its executive committee to review the effectiveness of cost-containment measures and the implementation of positive and beneficial strategies. I am most grateful to the Board for its confidence.”