At a meeting held in Bahrain on 18 December 2002, Gulf Air’s Board of Directors, reaffirmed their full commitment to the airline as the…
At a meeting held in Bahrain on 18 December 2002, Gulf Air’s Board of Directors, reaffirmed their full commitment to the airline as the national carrier of Abu Dhabi, Bahrain and Oman, and unanimously approved the airline’s three-year strategic recovery plan. As a result, more than BD90 million (US$238 million) will be injected into the airline by the three owner states for 2003 and government debt will continue to be deferred.
In announcing the decision, outgoing Gulf Air Chairman, His Highness, Shaikh Hamdan bin Mubarak Al Nahyan said that the Board had been impressed by the major changes in service improvement and efficiency that had already taken place in the six months since Mr Hogan had been appointed. The introduction of new management, both local and international and the radical reappraisal of obsolete and ineffectual processes had already made their mark, and he was confident that the plan would restore Gulf Air to its position as one of the world’s leading airlines.
This three year strategic recovery plan was one of the most comprehensive and important documents the airline had ever compiled and required some very close and extensive scrutiny, he said. It was imperative, that in a difficult global environment for the airline industry as a whole, we were sure that the decision we made was both in the best interests of the owner states and the airline itself. I am delighted to announce that all three representatives are fully behind the plan and we look forward to maintaining the momentum we have already achieved.
James Hogan also welcomed the decision, and revealed that there would be number of main pillars to Gulf Air’s revival.
I would like to thank the Board for their wholehearted support and vision in backing this plan, he said. Throughout our discussions we were never asked to compromise in any shape or form. There are a number of pillars to the recovery plan including brand development, fleet re-construction, network, alliances and customer service – as well as others. There will of course also be a strong focus on profitability and improvements to cost structures.
Hogan announced that work had already started in all these areas. Yield is a key to the profitability to any airline and a year-on-year trend in yield decline has been arrested. Efficiency and costs will also be tackled.
He also praised the staff for their efforts in beginning to reshape the airline and said that senior management has been empowered to assume more responsibilities. We have also changed reporting lines and this ensures that individuals are more accountable for their actions and input as this goes in tandem with the support, rewards and motivational efforts we are committing to them.
With regard the fleet and network Hogan said that Gulf Air would evaluate its fleet on the premis of being able to get its customers where they want to go, when they want to go.
This will determine where we fly to and how often, at what times of the day and with which aircraft. As we grow we will naturally also expand our fleet, he said. Talks are underway with Boeing, Airbus, Embraer and Bombardier to discuss requirements for the next ten years. We aim to return to destinations previously served and introduce new ones – again all on a commercial basis.
It was also announced that Gulf Air is talking to a number of leading alliances including STAR and One World. A decision about joining one or the other can be expected in the first half of 2003, he said.
At the heart of the turnaround process will be our people, says Hogan. Everyone in Gulf Air is committed to having a safe and ethically run airline. There will be absolutely no compromises in these areas and we will always continue to comply with and wherever possible surpass all international requirements.
We also need the commitment of the communities of our owner states to embrace Gulf Air as their national carrier and to make it their preferred airline whenever they travel, concluded Hogan. This will provide important impetus towards helping us to grow and in so doing further contribute to the economies of Abu Dhabi, Bahrain and Oman in a variety of areas, not least of which, will be employment and local business opportunities.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
