Bahraini MPs call for Gulf Air’s privatisation amidst mounting challenges

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

Bahrain’s flagship carrier, Gulf Air, is on the brink of privatisation amidst mounting financial troubles, signalling a significant shift in its operational landscape.

A report by a parliamentary committee tasked with overseeing Gulf Air’s affairs underscores privatisation as the primary avenue to revitalise the airline’s fortunes, particularly after enduring years of financial losses.

This report, set to be reviewed during the upcoming Council of Representatives session, sheds light on the airline’s precarious financial standing.

The move is expected to spark discussions on vital reforms necessary to steer the airline back towards profitability, which pays around BD54 million in annual salary.

Out of this, a substantial 68.7% is allocated to Bahraini employees, whereas the airline has on its payroll a total of 2,465 employees, including 1,602 Bahraini nationals.

The committee’s scrutiny of Gulf Air’s affairs commenced last November in response to concerning reports surrounding the carrier’s financial instability.

The findings are poised to ignite debates on the urgent need for reform and privatisation. In its confidential report, the committee advocates for private sector ownership as a pivotal strategy to bolster Gulf Air’s operational efficacy and productivity, both of which have been flagged as significant contributors to its ongoing losses.

As per the report, Gulf Air faces a myriad of outstanding debts for oil services, airport services, cargo, passenger handling, maintenance, airspace, and marketing fees, as well as aircraft purchases and leases.

The report also critiques the airline for its opaque financial disclosures and inadequate transparency concerning receivables and payables.

It noted Gulf Air did not disclose the full amount of outstanding debts and failed to provide detailed statements of all receivables, payables, and measures taken in this regard upon the committee’s request.