Gulf Air, the national carrier of the Kingdom of Bahrain, was established in 1950. Throughout its history, the company has faced numerous financial challenges and accumulated losses over the years. What are the reasons behind this?
In a development reflecting the fragile financial state of Gulf Air, a parliamentary investigation committee warned of the continued deterioration of the company’s performance and its financial losses, calling for urgent measures to improve its financial situation and hold those responsible for corruption accountable.
The committee’s report revealed that the national airline received government support exceeding 48 million dinars, while its total losses amounted to approximately 77 million dinars until 2021. Despite these alarming figures, the report also showed that the company has not taken effective measures to achieve financial balance and combat corruption within it.
Wrong decisions at Gulf Air
The report’s findings indicate the company’s disregard for the recommendations of previous parliamentary committees to hold those responsible for the losses accountable, highlighting the lack of transparency and accountability within the company.
Considering the inconsistent management policy and political interventions in decision-making, observers attribute the company’s losses to frequent changes in management and the preference for opening unprofitable airline routes at the expense of profitable and demanded routes by passengers.
Among the controversial decisions is the opening of airline routes to undesired destinations such as Tel Aviv, while Gulf Air continues to suspend direct flights to popular destinations like Iraq, Iran, and Syria. This raises questions about the motives behind these policies and their negative impact on the company’s performance and financial interests.
Given this development, it is imperative for the government and relevant authorities to take immediate action to improve the status of the national airline, including conducting a transparent and objective investigation into the causes of the losses and holding those responsible accountable. Moreover, ensuring the implementation of an effective financial strategy to uplift the company and guarantee the sustainability of its future operations.
source: lualuatv
