Gulf Air losses exposed!

TDT | Manama     

The Daily Tribune – www.newsofbahrain.com

The Bahrain Parliamentary Investigation Committee has submitted its report regarding the individuals accountable for the losses incurred by Gulf Air, the Kingdom’s national carrier.

Spearheaded by MP Mohammed Almaarafi, the committee commenced its inquiry with a total of 10 meetings held, conducted interviews with representatives of the company, and collected evidence pertaining to the matter.

Gulf Air, founded in the 1950s by four families, operated under the authority of four governments: Bahrain, Qatar, Abu Dhabi, and Oman with a capital of BD130 million. Some of the committee’s investigation noteworthy revelations included:

1. Gulf Air’s responses failed to disclose the magnitude of its losses, which are estimated to be around BD77 million.

2. The loss rose to 8.4% in 2022 due to the Russia-Ukraine war.

3. The committee revealed that the national carrier has not made any plans to fly to highly sought-after destinations, a missed opportunity that its competitors capitalised on.

4. Contrary to circulating numbers suggesting a figure of 35 affected by the company’s restructuring, it issued a statement indicating that 22 employees were initially affected, 13 of which the company later reemployed.

“The report relied heavily on previous reports and the transparent correspondence with the company’s trade union, unlike its board of directors,” said MP Al Maarafi.

“Appealing to article 200 of Bahrain’s Penal Code, holding the responsible for the losses is of utmost importance,” he added. The MP unveiled compelling documents to the house that purportedly showcased instances of vindictive termination against employees who had successfully prevailed in legal battles against the company.

These documents shed light on a troubling pattern of retaliatory actions taken by the company, casting doubt on their commitment to fair labour practices and raising serious concerns about employee rights.

According to official sources, the national carrier received approximately BD48 million in subsidies in 2023. This financial support aims to facilitate the implementation of the company’s plan to revitalise its capital and pursue a strategic approach towards effective spending.

MP Khalid Saleh Buanaq later showcased images of dilapidated machines worth thousands of dinars purchased by Gulf Air, which have been left unused for years. a blatant example of irresponsible spending by the company.

In a written statement, MP Basma Mubarak has proposed five key recommendations for Gulf Air aiming to enhance the overall efficiency and transparency of Gulf Air. These recommendations include:

1. Solidifying financial performance and reducing reliance on state subsidies.

2. Expanding the airline’s reach by introducing flights to new destinations.

3. Establishing a robust system of accountability to ensure responsible and transparent operations.

4. Boosting Bahrainisition in the company.

5. Enhancing transparency in disclosing the company’s financial transactions In response to the concerns expressed by the MPs, H.E. Minister of Transportation Mohamed bin Thamir AlKaabi highlighted reports from reputable aviation organisations like IATA (International Air Transport Association) and ICAO (International Civil Aviation Organization) that underscored the significant financial repercussions endured by the entire airline industry as a direct consequence of the pandemic.