Dubai: Bahrain’s national carrier Gulf Air has been given a reprieve by its politicians who decided to withdraw a vote that would have forced the airline to hand back a $490.7 million year-old bailout.
“We welcome the parliamentary panel’s reconsideration of the veto. We believe this is the correct decision based on the result being achieved by Gulf Air in its on-going restructuring process,” a Gulf Air spokesperson stated in an email.
Bahraini media reported on Saturday that parliamentary committee to veto a 2012 royal decree that had handed Gulf Air the bailout. The move by some of Bahrain’s politicians was reported as being largely symbolic and in protest of the bailout being granted without parliamentary approval.
Following last year’s bailout and increasing debt, Gulf Air have been forced to reduce its costs including significant job cuts.
“As a result of a strong summer, optimised capacity management and cost efficiencies from the restructuring, we expect the airline’s third quarter operating results, scheduled for release this week, to be over 20 per cent better than predicted,” a Gulf Air spokesperson said.
The airline’s losses have been reduced by more than 50 per cent year-to-date and is reportedly on track towards commercial sustainability.
