As the first year of Gulf Air’s three-year restructuring strategy draws to a close, President and Chief Executive, James Hogan disclosed that with the airline on track to meet its financial target, the cost of living increase incorporated into the plan would be paid out again in February 2004.
“The past year has been a period of unprecedented change and hard work at Gulf Air,” he said. “We are fortunate in having a remarkable team of people, who have worked tirelessly to implement the many changes at every level of our operation both on the ground and in the air. The numerous achievements of the last year are largely attributable to their perseverance and dedication.”
“Therefore as we promised at the outset of our programme in 2002, we will once again be paying an annual cost of living increase in 2004, and more importantly subject to meeting the financial targets for 2003, each member of staff will be paid a bonus of week’s pay.”
In terms of the restructuring strategy unanimously approved by the board in December 2002, the airline is committed to reducing its losses to BD20 million by the end of 2003, breakeven in 2004 and profitability in 2005.
In setting these targets, Gulf Air simultaneously committed to an incentive bonus scheme for staff that allows for the payment of one week’s bonus on reaching the 2003 target, two weeks’ bonus at break-even, and a month’s salary when the airline attains profitability.
“The role of our staff is fundamental to the turnaround process and in reshaping the company, which is why, in addition to these financial incentives, we are gearing up our human resource management system to empower employees to take up active contributory roles in Gulf Air and in the local economies of our owner states,” he said in conclusion.
About Gulf Air
Gulf Air was founded in 1950. Today, it is owned by the Kingdom of Bahrain, the Sultanate of Oman and the United Arab Emirates, and is the only truly pan Gulf airline in the region. The airline’s network extends from Western Europe to Asia and covers 45 cities in 33 countries. The fleet is one of the most modern in the Middle East and comprises 36 aircraft.
The airline is in the first year of a three-year strategic recovery program, headed by President and Chief Executive, James Hogan. The airline’s aim is to further evolve by taking its renowned cultural strengths, which have been gained over more than half a century, into a global environment.