Bahrain: Mumtalakat Holding Company, the investment arm of the kingdom, said that it would transfer the ownership of Gulf Air Bahrain’s national carrier to the government.
“Given the strategic importance of Gulf Air to the national economy, the Bahrain government is the suitable owner of the airline. We are thankful for the opportunity we’ve been given to work with Gulf Air after it came under our umbrella,” Mumtalakat said in a statement released on Thursday evening.
Gulf Air, founded in 1950, was originally co-owned by Bahrain, Qatar, Oman and Abu Dhabi and was seen as a symbol of pan-Gulf unity.
However, in the wake of a series of national and international developments, Bahrain became the sole owner in 2007 following the exit of Oman, the last partner in the joint venture, and the company shares were transferred to Mumtalakat.
The company has embarked on a new restructuring programme under the management of former Royal Jordanian airlines chief executive Samer Al Majali who took office as Gulf Air chief executive officer on August 1, 2009.
Mumtalakat said that it worked with Gulf Air management to reach a common strategy with all parties to help the national carrier return to profitability.
Gulf Air has had to deal with tough competition from state-owned airlines in Qatar and the UAE that have large fleet and impressive expansion programmes as well as with regional low-cost airlines operating in Bahrain, Kuwait and the UAE.
