MANAMA – Bahrain has been left to go it alone after a decision by Oman to withdraw from the ownership structure of struggling Gulf Air.
Founded in 1974, Gulf Air was owned equally by the governments of Bahrain and Oman, after Qatar and Abu Dhabi withdrew in 2002 and 2005 respectively.
Oman’s withdrawal will leave Bahrain as the sole owner to cope with the airline’s financial problems.
Chief executive Andre Dose said last month that the carrier was losing more than a million dollars a day, and unveiled a plan to cut its fleet and jobs.
Hisham Abu al-Fateh, the director of Gulf Air’s CEO office, said it was too early to say how big a financial hit Bahrain would take.
Abu al-Fateh told AFP. “I don’t think Bahrain buying Oman’s stake in the airline has been suggested.”
The airline announced last month that its predicted debt to the end of 2007 would amount to US$675 million.
Airline analysts say Bahrain will benefit because all the carrier’s aircraft will be based at its international airport.
Better news for Dubai-based airline Emirates, the largest customer for Airbus’s A380 super jumbo airliner. It has agreed compensation with the European plane maker over the delayed delivery of the world’s largest passenger aircraft. It has also ordered four more A380s.
Emirates is now due to take delivery of its first A380 in August 2008, a delay of almost two years.
