Gulf Air yesterday reported strong improvements in major key performance indicators during the first quarter of 2006, as the airline`s two-hub strategy…
Gulf Air yesterday reported strong improvements in major key performance indicators during the first quarter of 2006, as the airline`s two-hub strategy took effect.
During the first three months of the year, the seat factor increased to 73.0 per cent, reflecting a 6.3 per cent increase in premium passengers and a strong increase in Haj traffic. Unit revenue for the same period rose by 6.6 per cent over 2005.
Gulf Air passenger traffic at Bahrain International Airport in the first quarter showed a 24 per cent increase year on year, while there was a 20 per cent increase at Seeb International Airport for the first three months of the year.
Forward bookings for April show the full effects of the strategy with year-on-year increases of more than 40 per cent in Gulf Air passengers in both hubs.
The senior executive team presented progress on Smart Airline, Successful Business, the new strategic plan approved by the Board in February this year. This plan includes provision for re-capitalisation of the airline, re-equipment of the fleet, product upgrades and refurbishment of present aircraft and investment in a range of areas of the business. Most importantly, it is based on the airline`s focus on two hubs, at Bahrain and at Muscat.
The positive effects of our transition to a two hub model are already in evidence, not only in passenger numbers and stronger performance at our two hub airports, but also in improved efficiencies. I believe we will also see significant cost reductions coming through in the figures as we reduce operational complexity in the next few months, said Gulf Air President and Chief Executive James Hogan.
Revenue growth simply cannot keep pace with oil price rises. Even after budgeted fuel surcharges, we are still facing a deficit of approximately BD 80 million in 2006. The cost of fuel remains our greatest challenge, he said.
Globally it is clear that the industry will have to take increasingly stringent measures to address fuel costs. We are looking at a range of options to mitigate these additional costs. We are already seeing a more consistent application of fuel surcharges in all our markets. Elsewhere, carriers are cancelling unprofitable routes, optimising schedules and frequencies and delaying aircraft orders he continued.
Mr Hogan also reported on the progress of the maintenance deal with SR Technics of Switzerland and the opening of the airline`s new state of the art simulator centre in Bahrain in March this year, as well as re-equipment of the fleet.
The fleet tender process is in its final stages and we hope to sign an MOU for wide body aircraft to replace the nine Boeing 767s in the next few months, and the refurbishment of the Airbus A340s is well underway, he added. Installation of Skybeds in first class and fully flat beds in business will bring all our aircraft up to the same award winning standard of the A330s, ensuring that our premium routes are properly served.
Mr Hogan finished by thanking the senior leadership within the airline`s owner states for their continued support of Gulf Air. Gulf Air already contributes significantly to the GDP of Bahrain and Muscat and we believe we can deliver even great contributions, thanks to the support of our owners. It is their vision and commitment that has allowed us to create one of the world`s top 10 airline brands, he said.
In closing, Board Chairman Abdulaziz Kanoo, reaffirmed the owner states` support for the airline. In the challenging environment in which we operate, I am very pleased with the progress that has been made to date. I would like to thank everyone who is working towards the vision we share for Gulf Air as a smart airline and a successful business, he said.
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