Bahrain's Gulf Air to resume flights to Tehran next month
DUBAI
Bahrain Air closes down, blames political unrest
Feb 12 (Reuters) - Small carrier Bahrain Air said on Tuesday it was shutting down, blaming political unrest in the island kingdom and the government's refusal to pay it compensation.
The privately owned airline, launched in 2008, has four planes and was flying to about a dozen destinations in the Middle East and south Asia.
It struggled to compete with Bahrain's larger flag carrier, Gulf Air, and low-cost airlines in the region.
Bahrain Air's business was hurt by pro-democracy protests that erupted in Bahrain two years ago, and although the government crushed those protests, scattered unrest has continued, weighing on the travel and tourism industries.
The airline said the government had broken a pledge to compensate it for the unrest and was now requiring it to make immediate payments on debts to the state, while the Ministry of Transportation was ordering it to cut back operations.
This caused a shareholders' meeting to decide that Bahrain Air would immediately suspend operations and file for liquidation under local law, the company said in a statement on its website.
Officials at the Ministry of Transportation could not be contacted for comment on Tuesday night.
The minister of transportation, Kamal Ahmed, is a board member of Gulf Air, which has itself been struggling financially. Last November it cut its orders for new planes to shrink its debt. (Reporting by Andrew Torchia and Praveen Menon; Editing by Alison Williams)
Gulf Air defers resuming Iran flights
Iranian civil service authorities have not responded to requests by Bahraini company
By Habib Toumi, Bureau Chief - gulfnews - Published: 11:32 October 17, 2012
Manama: Gulf Air said that it would not resume flights to Iran this month as planned after the Iranian authorities have been slow in approving them.
“Gulf Air regrets to announce its services between Bahrain and Iran have been deferred until further notice,” the company said in a statement. “The postponement has become necessary following the delay in receiving approval from the Iranian Civil Aviation Authority of the airline’s flight schedule as permitted under the terms of the current bilateral agreement.”
Gulf Air said it was looking forward to launch flights early next year and set up a dedicated customer services team to contact passengers affected within the next seven days to offer alternative options.
“The national carrier apologises to the passengers affected and reassures them that it is working hard to get approval from the relevant authorities to re-launch services as soon as possible,” the company said.
In August, Gulf Air said that it would resume its services to Iran and Iraq on September 20 after they were halted in March 2011, days into the unrest that hit the nation that the local authorities linked to Tehran.
Gulf Air, founded in 1950, said that one of its prime objectives was to connect Bahrain to the Middle East countries and the rest of the world.
“As such the airline currently operates the largest network in the Middle East with non-stop flights while providing seamless onward connections to other international destinations. The airline’s current network stretches from Europe to Asia, connecting 48 cities in 30 countries, with a fleet of 39 aircraft,” the company said.
However, the company has suffered huge losses after its lucrative routes to Iraq and Iran were suspended.
A move by the government to help the company has been resisted by several lawmakers who wanted to impose conditions before funds could be extended to Gulf Air.
King Hamad Bin Eisa Al Khalifa this week issued a decree allocating 185 million Bahraini dinars (Dh1.7 billion) to recapitalise Gulf Air in order to actively address the national carrier’s current position and secure its long-term sustainability.
Samer Majali, Gulf Air CEO, welcomed the move and said that the funding will be used to fulfil the airline’s current debt obligations and meet its future restructuring costs.
“Working together with the Government of Bahrain and its shareholder, Mumtalakat, to review its existing fleet and network, Gulf Air will implement an accelerated strategy and aggressive restructuring programme to achieve more dramatic cost and liability reductions and put the airline firmly back on the road to sustainability following a difficult 2011,” he said.
According to Majali, the requirement for funding was “a direct result of a series of unprecedented regional and economic factors, including a significant increase in fuel costs that Gulf Air faced, in common with other carriers around the world since 2011”.
“In addition to this, Gulf Air had specific other factors to contend with. The security situation locally and in the region meant the airline was forced to suspend eight of its most profitable destinations. Further concerns such as visa restrictions and travel bans by several countries significantly cut the number of people travelling through Bahrain,” he said.
Relations between Bahrain and Iran have plummeted after Manama accused Tehran of “blatant interference in its domestic affairs”.
Both capitals pulled out their ambassadors amid the growing tension.
However, Bahrain reinstated its ambassador in Tehran and attended the Non-Alignment Movement summit held in the Iranian capital.
However, Iran did not reciprocate and kept its diplomatic mission in Manama under its charge d’affaires.
On Monday, the foreign ministry summoned the charge d’affaires to protest against Iran’s meddling in Bahrain’s domestic affairs and attributing misstatements to Bahraini officials over an alleged mediation request.
LOSSES WORRY
By Rebecca Torr , Posted on » Sunday, October 09, 2011
BAHRAIN'S national carrier suffered a 30 per cent drop in passengers during the unrest, a top official has confirmed.
Travel advisories issued by foreign embassies suggesting citizens should avoid travelling to the country were largely to blame, said chief executive officer Samer Majali.
He said restrictions on travel across King Fahad Causeway and a government decision to suspend flights to Iran, Iraq and Beirut also contributed to losses.
Mr Majali admitted Gulf Air's plan to become a sustainable entity by the end of next year had suffered a significant setback as a result of the unrest.
The airline aimed to reduce losses from BD190 million in 2009 to BD135m last year, to BD88m this year and close to zero next year.
However, it has been forced to revise its targets and is now hoping to reduce losses to BD100m by next year, said Mr Majali.
"The airline put together a three-year strategic plan late 2009, which was approved by the government, to turn the airline within a three-year period into a sustainable entity, ie, break even, recover its revenues, costs and so on," he said.
"This plan called for refocusing the network, concentrated on a more regionally-focused network, flying long range, but investing in a network in the region.
"In 2010, the company reduced losses from BD190m to BD135m, reduced manpower by 1,000 people and introduced new airplanes.
"In 2011, our budget was calling for a loss of BD88m and then in 2012 close to zero, but unfortunately we ran into a brick wall."
Mr Majali said the airline was trying its best to recover and had been boosted by the return of flights to Beirut.
"Still the level of traffic is far less than it was the same time last year because of the continuing unease and perception on the outside of what is happening here, even though things are okay," he said.
"We are trying to minimise losses as much as we can but they will be greater than what we expected this year."
Unfortunate
Mr Majali said it was unfortunate that the routes closed were some of the most profitable.
However, to reduce losses the airline opened up alternative destinations in Saudi Arabia, Europe and East Africa.
"We are trying to compensate for our losses, but not all routes are equal in profitability," he said.
"So we are struggling because of the events, a lot of airlines would have shut down completely during events like what happened in Bahrain, but we didn't stop our airline operations for a moment.
"We are trying to get back on track and reduce the losses again next year below BD100m and hope to get to sustainability very soon."
Mr Majali was guest speaker at the Rotary Club of Adliya's weekly meeting held at the Elite Resort and Spa, Muharraq.
It was led by club president Laith Shukayr and attended by Rotarians and guests. rebecca@gdn.com.bh
Gulf Air to resume Iran/Iraq flights
Published: 4 September 2012 - 5:36 a.m.
By: staff writer Arabian industry
Gulf Air is offering lowered prices on return flights to Iran and Iraq as it prepares to relaunch flights to both countries.
Services were suspended last year as political unrest gripped Bahrain.
The special fares are available on bookings made between 1 and 14 September, for travel between 20 September and 15 October 2012. All travel must be completed by 15 October 2012.
Gulf Air Chief Commercial Officer Mr. Karim Makhlouf said, “For a limited time, passengers wishing to travel to Iran and Iraq and enjoy Gulf Air’s award-winning on-board service can do so at a reduced cost.”
Flights to Baghdad, Erbil, Najaf and Basra in Iraq and Tehran, Mashhad, Shiraz and Isfahan in Iran will begin progressively from 20 September.
Gulf Air Resumes Iraq And Iran Flights
Bahrain’s flag carrier will restart routes into both countries from next month.
Thursday, 16 August 2012 By Neil Churchill August 16, 2012 - gulfbusiness
Gulf Air is to resume its flights to Iran and Iraq following the Bahrain Government’s approval.
The airline will recommence routes to Iraq’s Baghdad, Erbil, Najaf and Basra from September 20 this year and Tehran, Mashhad, Shiraz and Isfahan in Iran.
Bahrain’s flag carrier will operate a total of 16 flights per week into Iraq by the end of October and 18 flights into Iran.
The restarting of flights is subject to final approval by the civil aviation authorities of both countries.
Mr. Samer Majali, CEO of Gulf Air, said: “We are glad to be resuming our operations to Iran and Iraq. I am sure this will be a welcoming news for thousands of Iranians and Iraqis living and working in Bahrain and the GCC countries as well as the business community for whom the direct flights will be a great advantage.
“We were the first and only full-service GCC carrier to operate into Baghdad back in 1976. Again, we were the first carrier to restart our operations in 2009, which received overwhelming support from travellers with most of our flights flying to full capacity.
“However we had to suspend the flights in 2011 due to unavoidable circumstances but were confident that we will resume our operations soon. I am glad the time has come and we look forward to the same support from our customers,” he added
Iran-Iraq flights ban is extended |
A SUSPENSION of all Gulf Air flights to and from Iran and Iraq has been extended.
Bahrain's national carrier had been due to resume flights to both countries tomorrow.
However, the suspension - which has been in place since March - has been extended until next month.
"The decision has been taken following the ongoing security situation in the region," the airline stated on its website.
Gulf Air flights to Iraq are now due to resume on November 15, while flights to Iran are pencilled in from November 30.
The flights to both countries were originally supposed to be restarted in April and has been repeatedly extended - meaning there is no guarantee the flights will resume next month.
The airline said passengers holding confirmed tickets to Iran and Iraq could rebook at no additional charge, or request a refund.
Meanwhile, a Bahrain Air spokesman said it had suspended flights to the two countries indefinitely until the government gave it the green light to restart.
Both carriers suspended flights to and from Iran, Iraq and Lebanon in March, but resumed services to Beirut in June.
The ban followed a government advisory urging Bahraini citizens against visiting Lebanon, Iraq and Iran, based on claims that Iran and Lebanese guerilla group Hizbollah were involved in Bahrain's unrest.
Civil Aviation Affairs (CAA) Under-Secretary Captain Abdulrahman Al Gaoud said earlier this year that the ban was intended to "protect" passengers and planes in line with international aviation regulations.
Gulf Air chief commercial officer Karim Makhlouf admitted in August that the airline had been hit by regional unrest, but major steps were underway to make up the losses.
He said the continued suspension of flights to Iraq and Iran was affecting profits and they were in touch with authorities on when they might resume.
Gulf Air previously operated flights to Baghdad, Najaf, Erbil and Basra in Iraq, as well as Tehran, Mashhad, Isfahan and Shiraz in Iran.
Bahrain Air operated routes to Mashhad in Iran and Najaf and Baghdad in Iraq.
A Bahrain-based representative of Iran Air said yesterday that its flights to Bahrain were also cancelled since March and did not know when they would resume.
"There are no direct flights and passengers from Bahrain usually travel to Iran from Doha, Kuwait and Dubai," she said.
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Bahrain ban on Iraq, Iran, Lebanon flights remains
Ban on flights to Iraq, Iran and Lebanon remains, says Bahrain official
By Habib Toumi, Bureau Chief - gulfnews - Published: 13:22 June 6, 2011
Manama: A Bahraini official has conformed that the ban on flights from Bahrain to Iraq, Iran and Lebanon has not been lifted.
The ban remains even though the state of national safety, the emergency laws, imposed in mid-March, was lifted on June 1, Abdul Rahman Al Gaood, the undersecretary for civil aviation, said.
The official told Al Bilad daily on Monday that no Bahrain-based plane could currently fly to any of the three countries.
The civil aviation imposed the restrictions to complain about the "blatant interference' in its domestic affairs by Iraqi, Iranian and Lebanese officials in relation with the political turmoil that hit the country.
Bahrain is home to two airlines, Gulf Air and Bahrain Air.
Bahrain stops flights to Iran, Iraq and Lebanon
(AFP) / 24 March 2011 - khaleejitimes
MANAMA — Bahraini airlines have suspended flights to Iran, Iraq and Lebanon, where religious groups have criticised the kingdom’s response to protests in the Gulf state, the airlines said on Wednesday. On Friday, Bahrain carried out a crackdown on activists demonstrating since February 14.
Iran condemned last week’s intervention by GCC troops in support of Manama, while Lebanon’s Hezbollah movement offered unspecified support for the Bahraini opposition. And thousands of protesters have turned out in Iraq in shows of support for the Bahraini protesters.
One Gulf Air booking agent said that cancellations to Iran and Iraq were due to “operational reasons”. Another said: “What we know is that Gulf Air cancelled the flights. We don’t know the reason.”
But another agent said: “Services have been cancelled by (the) Bahrain government for security reasons. You know the situation in Bahrain ... We don’t have (any) idea” when they will resume. National carrier Gulf Air’s website says its operations are “suspended until and including 31 March, 2011” of flights to Teheran, Mashhad, Shiraz and Isfahan in Iran, and Baghdad, Najaf, Arbil and Basra in Iraq.
Gulf Air and budget airline Bahrain Air have both called off flights to Lebanon “until further notice”, the official BNA news agency said.
An official of Bahrain Air said the airline does not have services to Iran or Iraq, while the company’s website said flights to Lebanon have been called off until at least March 30.
Meanwhile, Bahrain Foreign Minister Shaikh Khaled bin Ahmad Al Khalifa told Turkish TV channel NTV on Wednesday that the situation in Bahrain is at a “very dangerous stage”.
“What is happening in Bahrain is now at a very dangerous stage. There is stability but, we are absolutely afraid of the division between religious communities,” Al Khalifa said in an interview. Al Khalifa said Turkey and Bahrain should have a common policy on the division between religious communities in the Islamic world. —
Gulf Air Cancels Iran, Iraq Flights as Bahrain Unrest Escalates
March 17 (Bloomberg) -- Gulf Air, Bahrain’s state-owned carrier, canceled all flights to and from Iran and Iraq and temporarily shut sales offices in the capital city of Manama, as the Gulf state declared a state of emergency.
The airline plans to resume flights to Iran on March 21 and to Iraq on March 18, it said in a statement on its website. The carrier canceled services on four routes to Iraq and Iran each.
Bahrain declared a three-month state of emergency this week after troops from Saudi Arabia and other Gulf states arrived to help quell a month of protests driven by majority Shiites, who are calling for democracy and civil rights.
To contact the reporter on this story: Tamara Walid in Dubai at twalid@bloomberg.net
To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net
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