Manama: Gulf Air’s acting chief executive Maher Salman Al Musallam has resigned, a spokesperson for the airline told the GDN yesterday.
The Arabic local media reported on Monday that Mr Al Musallam had resigned and when contacted by the GDN yesterday, the airline confirmed that while Mr Al Musallam had put in his papers, it did not say whether the resignation had been accepted by the national carrier’s board.
The GDN had reported on January 15 that an inquiry was underway to probe the financial and administrative situation of Mumtalakat, the investment arm of Bahrain and the 100 per cent owner of Gulf Air.
A report by a parliamentary investigation committee studying the situation of 40 companies under Mumtalakat is expected before the end of the month, it said.
The probe panel had noted that the top management of Gulf Air was still provisional, adding that the position of the chief executive had been vacant for the past three years.
Last Friday, during Bahrain International Air Show (BIAS), the national carrier announced it was ordering 19 new Airbus aircraft and upgrading a 16-aircraft Boeing order amounting to a total of $7.6 billion, to renew its fleet.
To purchase the aircraft, Gulf Air plans an equal split between financing and lease-buy-back structures, said a Reuters report
“We’re looking at all financing options in the market to keep a healthy balance sheet,” Gulf Air chief financial officer Sahar Ataei said at a media briefing during the event.
“We are also seeking international financial advisers’ assistance in this area to look at our financing strategy.”
The company has gone through a lengthy restructuring, said Mr Al Musallam who also addressed the briefing.
“Improving business results have reduced financial losses by approximately 85pc since 2012 and today Gulf Air’s strategic direction has shifted – with positive KPIs (key performance indicators) all around,” he said.
“Alongside this, the airline’s strategic direction encompasses fleet developments to cater to future network and capacity enhancement and fleet modernisation,” he said.
The airline reported an annual loss of BD62.7 million ($166.3m) for 2014, down by 33pc from a loss of BD93.3m in 2013.
Mr Al Musallam said while the current financial year was not yet over, he expected losses to come down by “a good margin” during the period.
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