Gulf Air is likely to join the world's leading airline alliance, Star Alliance, as part of its initiatives to drive prices and operating costs down.

"Gulf Air is in serious discussions with Star Alliance. We are also in talks with One World. A final decision will be taken in the next three to six months," Gulf Air's president and chief executive, James Hogan, told Gulf News.

Currently, the Star Alliance network has 14 of the world's finest airlines, which include Lufthansa, Singapore Airlines, United Airlines, Air Canada, Mexicana and others. The network serves 729 airports in 124 countries.

Earlier, speaking at the launch of Gulf Air's 'Restaurant in the Sky', Hogan said the airline will break-even within two years and return to profits at the end of the third year.

"This will be achieved through greater professionalism, accountability and promises will be delivered," he said.

A key international initiative with a Gulf focus will be unveiled shortly, he added. Several targets and industry benchmarks have already been achieved. "We are confident of returning to profitability."

A senior official of Gulf Air said Qatar is now unlikely to rejoin the airline as an equity partner after it pulled out earlier this year.

"I think it is clear now that Qatar does not want to rejoin Gulf Air. But there are other options available and we are working on those," he said without going into details. Industry sources said Gulf Air is in talks with some other airlines to take an equity.

"It doesn't seem that anything is finalised yet. But talks are going on," said a senior aviation official.

Gulf Air's latest initiative, 'Restaurant in the Sky', will have chefs on board to form part of the airline's first class cabin crew starting September 12, 2002 on the Abu Dhabi and Bahrain to London flights and other long-haul destinations later.

"This is a key initiative to regain our market share with the high yield business customer, a segment of the market that Gulf Air used to own," he said