Kingdom of Bahrain’s national carrier Gulf Air has benefited due to the major restructuring done during the first six months of 2013 with the process of Bahrainisation reaching 63%.
The carrier has reduced its losses by more than 50%, according to a report.
Officials said the figures show a three-year strategy to safeguard the airline’s future has started to pay off, the Gulf Daily News reported Sunday.
They were achieved through a 26% cut in year-on-year costs across the organisation, bolstered by a yield increase of 6% between April and June.
Gulf Air is also 15% ahead of its financial target in the first six months of the year, while its Bahrainisation rate has now reached 63 per cent – the highest in its history.
Transport Minister Kamal Ahmed, who is also chairman of the airline’s executive restructuring committee, welcomed the figures. “Gulf Air’s results, achieved in an operating environment characterised by volatility and severe competition, reflect a significant achievement for the airline and demonstrate the effectiveness of the restructuring strategy,” he said.
“This progress would not have been possible without the commitment and contribution of all Gulf Air’s staff and management and I would like to thank them for their support.
The airline is reportedly seeking to shed up to 1,066 of 3,800 jobs as part of a massive downsizing operation – of which 565 are based abroad.
It hopes this will reduce its losses from $248 Million (BD95 Million) to $153.8 Million (BD58 million) by 2017.