Gulf Traveller takes off

Gulf Air expects to earn higher revenues through its just launched all-economy airline, Gulf Traveller, and reduce losses by half to $20 million by the end of this year.

Also, the airline's fleet expansion until 2005 will include aircraft on operating leases and Gulf Air will fly to Iraq once Baghdad International Airport opens.

Speaking yesterday after the official launch of Gulf Traveller, Gulf Air's all-economy airline, James Hogan, president and chief executive, said the new airline has been tailored to address a very important single segment of the broad multi-segmented market in which the airline operates.

"We will have more economy seats, leading to more revenues. We are also on target to reduce our losses through cost cutting to $20 million by this year end from $40.6 million in 2002 and $52 million in 2001.

"Although we met our objectives in the first quarter, SARS impacted us in the second quarter. But we will be on track in the third and fourth quarter," he said.

Earlier, Sheikh Hamdan bin Mubarak Al Nahyan, chairman, Abu Dhabi Civil Aviation, formally launched the Gulf Traveller which took off from Abu Dhabi to Jeddah, its inaugural flight.

Hogan said Gulf Traveller will fly to 17 destinations initially, mainly India, Nepal, Pakistan, Bangladesh, Sri Lanka, Tanzania, Jeddah and some other GCC cities. Future plans include secondary European destinations.

The airline will be operating from Abu Dhabi using six single-class Boeing 767-300s, all bearing the distinctive new livery. "The introduction of low cost or single class carriers in the Middle East market is inevitable at some point in the future and Gulf Air is pre-empting this trend."

There will be a crew to passenger ratio of one to 39, which compares favourably with ratios of one attendant for 44 or 46 passengers on leading airlines.

Gulf Air's ten-year fleet expansion plan of doubling its fleet to around 60 by 2010 remains in place. "Between now and 2005 we will be bringing aircraft on lease. We are in discussions with Boeing, Airbus, Bombardier and Embraier.

"It will take about 6-12 months before final decisions are made." Fleet expansion will really depend on demand, profitability, route development and customer base, he said.

Hogan confirmed Gulf Air will fly to Iraq once the airport is operational. "We have been lobbying in Washington with the defence and transport aviation authorities and made clear that Gulf Air is a pan-Arab carrier and is keen on flying there."