Parliamentary Committee Recommends Partial Privatisation of Gulf Air
TDT | Manama
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The House of Representatives' Financial and Economic Affairs Committee has officially recommended that the government consider the partial privatisation of Gulf Air, the national airline of Bahrain.
This recommendation was made during a recent committee meeting chaired by MP Ahmed Al Salloom. The committee approved a proposal that urges the government to sell a portion of its ownership stake in Gulf Air, while still retaining a controlling interest of 51% through Mumtalakat Holding Company, the investment arm of the Bahrain government.
This recommendation is based on a detailed proposal put forth by MP Khalid Buanaq and is driven by several key motivations that the committee believes are essential for the airline's future. Primarily, the committee aims to address the substantial government subsidies currently allocated to Gulf Air, which represent a significant expense within the national budget.
By pursuing partial privatisation, the committee anticipates a reduction in these subsidies, thereby easing the financial burden on the government. In addition to reducing subsidies, the partial privatisation is expected to lead to a comprehensive restructuring of the airline's board and executive management.
This restructuring is viewed as a crucial step toward enhancing the overall performance, operational efficiency, and profitability of Gulf Air. The committee's report highlights the potential benefits that could arise from increased private sector involvement in the airline's operations.
The report further argues that attracting experienced investors to Gulf Air could bring valuable expertise and insights that would contribute to the airline's revitalisation.
It's worth noting that the proposal's accompanying explanatory memorandum underscores the importance of a collaborative approach between the legislative and executive branches of government.
The committee firmly believes that strategic participation from the private sector can significantly aid Gulf Air in achieving greater financial stability and competitiveness in the ever-evolving global aviation landscape.
The proposal is scheduled to be presented before the House of Representatives on Tuesday, where members of parliament will have the opportunity to debate and vote on this critical initiative.
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