Gulf Air says its business strategy will stay unchanged

Gulf Air President and Chief Executive James Hogan yesterday said that Gulf Air's business strategy would not be changed as both Bahrain and Oman confirmed that Abu Dhabi, the third co-owner, was withdrawing from the alliance.

"There will be no change to Gulf Air's core approach to business or to its on-going business strategy as a result of the withdrawal of Abu Dhabi as a shareholder in the airline," Hogan said.

"We will continue to build upon our successes, enhancing our brand and our services to reinforce our position as the leading airline in the region.

"In the last three years we have made massive strides in our business performance.

"We have done that by focusing on our customers, on our staff and on our services. We will continue to do so into the future," Hogan said.

An official source in the Abu Dhabi Government said late last night that Abu Dhabi has decided to withdraw from Gulf Air, news agency WAM confirmed. The source added that the decision was made out of Abu Dhabi's desire to concentrate its efforts on Etihad.

"The Abu Dhabi Government will continue its fraternal efforts towards previous partners in the Gulf Air company to finalise the withdrawal procedure," the source stated.

Bahrain and Oman said they respected Abu Dhabi's decision.

"We understand that they wish to focus on their airline's development strategy in other directions and we wish them luck and success," Hogan said.

Abu Dhabi said that it would withdraw its shareholding over the next six months.

"The two governments also confirmed their unequivocal support to the national carrier, Gulf Air," a company spokesperson said in Manama.

"Bahrain and Oman have reiterated their full support to ensure the continuity of Gulf Air and the future plans of the airline," an airline spokesperson said in Manama.

Hogan welcomed the confirmation of support from Bahrain and Oman.