Bahrain approves $494 million cash injection
The government in Bahrain has approved a $494 million cash injection for its flag carrier Gulf Air. But radical restructuring is likely to be part of the deal. Negotiations will continue over the coming weeks, but politicians have already said that restructuring may include reducing the fleet and workforce by almost half – cutting the number of employees from 3,800 to 1,800 and the fleet from 39 to 20 aircraft. The airline would then focus on regional flights and keep just two long-haul aircraft for services to London and Paris.
The deal may also result in cancellations of orders for 20 Airbus A330-300s and 16 Boeing 787s, an announcement on which is expected soon.
[photo courtesy Gulf Air]