Bahrain keen to fully own Gulf Air

Manama: Bahrain is seeking to own 100 per cent of Gulf Air, a carrier it currently jointly owns with Oman, the company's vice-chairman said yesterday.

Mahmoud Al Kooheji confirmed comments made by Crown Prince Shaikh Salman Bin Hamad Al Khalifa in the Bahraini press that Bahrain is aiming to own the whole firm, after last month saying the kingdom would initially raise its stake to 80 per cent.

Bahrain and Oman each own half of Gulf Air, which is based in Bahrain.

"We have reached an understanding between us and Oman for 80 per cent ownership by Bahrain, 20 by Oman ... Of course the prince's comments are true," Kooheji said.

He declined to give a timeline or cost of the stake increase. In March, he said Bahrain would increase its stake to 80 per cent through a cash injection of up to 500 million dinars ($1.33 billion), and that this would happen soon.

From the 1970s, Gulf Air was the joint carrier of Abu Dhabi, Bahrain, Oman and Qatar, but Gulf Arab states have increasingly moved towards creating their own national carriers. Oman's government is increasing its stake in Oman Aviation Services, which operates Oman Air.

The parent company recently approved a plan to nearly quadruple its capital to 50 million rials ($130 million) through a placement by Oman's government to expand operations and acquire new planes.