Manama Bahrain's finance minister has denied a report that the government was planning to dissolve the national airline Gulf Air and insisted that it would continue to support the airline.
A local daily yesterday reported that Shaikh Ahmad Bin Mohammad Al Khalifa said that the government would go for the least expensive option in dealing with the airline's financial woes by dissolving Gulf Air and setting up a new company.
"The newspaper report is baseless and lacks credibility," Shaikh Ahmad said. "The plan is very clear and is not open to any interpretation," the minister said.
Options to deal with the situation of Gulf Air, one of the Middle East's oldest carriers, dating to 1950, included keeping the status quo, liquidating it, suspending the company until it is restructured or shrinking its route and fleet numbers.
"The government looked at all options suggested by experts and opted to support the airline by increasing its capital," the minister said.
That decision was made due to the contribution of the aviation sector to the national economy as well as direct and indirect employment opportunities generated. The airline's significant international links with various countries were also considered, the minister said.
The ministry has been in close contact with the parliament on the issue to reach an agreement, he said.
