Gulf Air announced a 52% reduction in annual losses and a financial performance that surpassed the airline’s restructuring target by BHD14.5 million, following the successful implementation of its 2013 restructuring strategy.
Launched in December 2012, Gulf Air’s 2013 restructuring strategy was led by the airline’s Board of Directors, chaired by H.E. Shaikh Khalid bin Abdulla Al Khalifa, Deputy Prime Minister, and driven by the Executive Restructuring Committee and Gulf Air management. The strategic restructuring of the national carrier has put it firmly on-track towards achieving long-term commercial sustainability.
Principally, the reduction in Gulf Air’s year-on-year annual losses was achieved through the execution of a number of major cost-saving initiatives, amounting to 28% cost-savings year-on-year. These initiatives included reductions in aircraft leasing fees, retiring of aircraft, the closure of eight loss-making routes, opening of five new destinations, increasing frequencies to eight existing destinations across its network, a reduction in staff expenses, the renegotiation of over 2,000 contracts with existing suppliers and productivity improvements. Throughout 2014 the airline will continue to manage cost prudently targeting a further cut in losses of approximately 10%.