Bahrain's flag carrier Gulf Air is considering refreshing its fleet with new aircraft as it revamps its network to serve key financial hubs and premier leisure spots in Europe and Asia amid a supply backlog for new jets.
While the airline will be taking delivery of Airbus narrow-bodies and Boeing wide-bodies over the next three years, its fleet review is also taking into consideration the years-long record backlog at the plane makers and production challenges facing them, Jeffrey Goh, chief executive of Gulf Air Group Holding, told The National.
“At this stage, the aircraft mix we have is appropriate … but we need to remain nimble as an organisation as we look to recalibrate our network, as we look to expansion opportunities and what aircraft type or variant would be more appropriate for us,” he said on the sidelines of the Future Aviation Forum in Riyadh on Monday.
“So, we are in the process of re-looking at our fleet … from the perspective of renewal purposes, so, replacement aircraft, because if you're ordering from the factories there's a fairly long lead time … we have to plan ahead for the renewal.”
The airline currently operates Airbus A320 Neos and A321 Neos and the older classic variants, along with Boeing 787-9s, in its fleet of 41 jets.
“Because of certain destinations, we may want to consider the 787-8s or the 787-10s, for instance,” Mr Goh said.
A decision on the fleet review could potentially be made in the second half of this year, with flexibility to make aircraft acquisitions through direct orders with plane makers or leasing aircraft, he said.
The fleet review comes as the airline, which turns 75 next year, is in the early stages of a multi-year restructuring.
Since joining in January 2023, Mr Goh has focused on a two-pillar strategy to take the loss-making airline forward.
The first is improving customer experience with initiatives such as complimentary Wi-Fi onboard, upgrading its airport lounges, a review of its in-flight catering and an overhaul of its loyalty programme that will be announced by the beginning of 2025.
The second strategic pillar is re-assessing the airline's route network.
Network revamp
Gulf Air wants to boost its presence in key financial cities, such as Zurich and Tokyo, as well as premium leisure destinations, such as Spain, Mr Goh said. It is also seeking to increase frequencies to religious pilgrimage sites such as Madinah, Jeddah and Najaf.
The airline is “very focused and disciplined” about its network planning “because in the past perhaps a lack of discipline has allowed a lack of focus on what we need to be as an airline”, Mr Goh said.
“We have a task at the moment to recalibrate and rebalance our network … which will then redefine what kind of airline we want to be.”
The airline plans to target corporate travellers, tourists, pilgrims and workers.
Aviation supply chain troubles
Production issues and delivery delays at Boeing and Airbus have a “pretty severe” impact on the ability of airlines, including Gulf Air, to grow or even to maintain operations, Mr Goh said.
On top of that, problems at engine makers such as Pratt & Whitney have forced airlines, including the Bahraini carrier, to ground some of their aircraft as a result of a shortage in engine spare parts.
“In as much as airframe manufacturers are driving more sales of aircraft, reliability becomes an issue,” Mr Goh said.
“It's very ironic if you end up buying an aircraft that sits on the ground. Whatever plans you have in terms of maintaining your current network or developing growth in your network, it isn't going to be served by aircraft that are sitting on the ground.”
The aviation industry has been hobbled on several fronts by supply chain constraints lingering since the Covid-19 pandemic.
Manufacturing woes at Boeing and defects in Pratt & Whitney engines are limiting the availability of aircraft, hampering airlines' ability to meet strong travel demand.
Gulf Air has held talks with jet engine makers Rolls-Royce and CFM (which is owned by GE and France's Safran) regarding its concerns.
“We cannot be more clear about our discontent,” Mr Goh said.
“They have been long on their promise and short in their delivery.”
The supply chain problems have affected Gulf Air's growth plans as it had to delay increasing frequencies on certain routes, he said.
2024 outlook
Gulf Air expects to carry 5.5 million to 6 million passengers this year, slightly higher than the 5.3 million in 2023, Mr Goh said.
In the first quarter of 2024, passenger volumes grew 5 per cent year-on-year.
Gulf Air is “cautiously optimistic” about continued strong demand during the rest of the year, as the appetite for travel outpaces limited seat capacity, he said.
Bookings for London, Bangkok, Frankfurt have shown “good demand”, while forward bookings to China also look strong, after the airline announced new routes to Shanghai and Guangzhou starting from the end of May.
Gulf Air's load factor – a measure of filling available seats – stood at 78 per cent in the first quarter, and it aims to end the year at similar levels.
The airline has suspended its flights to Tel Aviv in the wake of the Israel-Gaza war, now in its eighth month, and “there's no question” that the conflict has affected Gulf Air and the travel and tourism industry in the Middle East, he said.
The carrier expects to narrow its loss this year, Mr Goh said, without providing further details.
It aims to break even by 2027, local media cited its chairman as saying in March.
Group plans
Gulf Air Group Holding is a conglomerate that includes Gulf Air, Bahrain Airport Company, BAC Jet Fuel Company and Gulf Aviation Academy. It also holds majority stakes in Bahrain Airport Services and Bahrain Duty Free.
While Gulf Air comprises about 75 per cent of the group's activities, plans are under way for the rest of the companies in the group portfolio.
The group is looking to export its aviation services to international customers to support Bahrain's economy and increase the kingdom's “brand equity” abroad.
It is seeking contracts to provide airport management, ground-handling, simulator training and catering services to aviation clients outside Bahrain.
“We're beginning to identify opportunities for internationalisation: Gulf Air is obviously an international flying billboard but … there is a good opportunity as a group with the strength that we have to export products and services and the brand of Bahrain,” Mr Goh said.
“You then have opportunities to invite and attract foreign direct investments because Bahrain becomes better known as a brand.”
As the airline marks its 75th anniversary next year, the timing is an opportunity to reflect on its history and on the airline it is shaping up to become, the executive said.
“Gulf Air is seeking a sustainable future … in the sense of a sustainable going concern as a business. That is the efforts going into the airline right now,” Mr Goh said.
Asked if the airline has plans to establish a low-cost arm, he said “there are no announcements to make”.
Dust and sand storms compared
Sand storm
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- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Brief scores:
Day 2
England: 277 & 19-0
West Indies: 154
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
The specs: 2018 Renault Megane
Price, base / as tested Dh52,900 / Dh59,200
Engine 1.6L in-line four-cylinder
Transmission Continuously variable transmission
Power 115hp @ 5,500rpm
Torque 156Nm @ 4,000rpm
Fuel economy, combined 6.6L / 100km
THE DETAILS
Kaala
Dir: Pa. Ranjith
Starring: Rajinikanth, Huma Qureshi, Easwari Rao, Nana Patekar
Rating: 1.5/5
ABU DHABI CARD
5pm: UAE Martyrs Cup (TB) Conditions; Dh90,000; 2,200m
5.30pm: Wathba Stallions Cup (PA) Handicap; Dh70,000; 1,400m
6pm: UAE Matyrs Trophy (PA) Maiden; Dh80,000; 1,600m
6.30pm: Sheikha Fatima bint Mubarak (IFAHR) Apprentice Championship (PA) Prestige; Dh100,000; 1,600m
7pm: Sheikha Fatima bint Mubarak (IFAHR) Ladies World Championship (PA) Prestige; Dh125,000; 1,600m
8pm: Sheikh Zayed bin Sultan Al Nahyan Jewel Crown (PA) Group 1; Dh5,000,000; 1,600m
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
The team
Photographer: Mateusz Stefanowski at Art Factory
Videographer: Jear Valasquez
Fashion director: Sarah Maisey
Make-up: Gulum Erzincan at Art Factory
Model: Randa at Art Factory Videographer’s assistant: Zanong Magat
Photographer’s assistant: Sophia Shlykova
With thanks to Jubail Mangrove Park, Jubail Island, Abu Dhabi
Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
Killing of Qassem Suleimani
Fifa Club World Cup:
When: December 6-16
Where: Games to take place at Zayed Sports City in Abu Dhabi and Hazza bin Zayed Stadium in Al Ain
Defending champions: Real Madrid
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
UAE tour of the Netherlands
UAE squad: Rohan Mustafa (captain), Shaiman Anwar, Ghulam Shabber, Mohammed Qasim, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Chirag Suri, Ahmed Raza, Imran Haider, Mohammed Naveed, Amjad Javed, Zahoor Khan, Qadeer Ahmed
Fixtures and results:
Monday, UAE won by three wickets
Wednesday, 2nd 50-over match
Thursday, 3rd 50-over match
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Killing of Qassem Suleimani
KILLING OF QASSEM SULEIMANI
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Try out the test yourself
Q1 Suppose you had $100 in a savings account and the interest rate was 2 per cent per year. After five years, how much do you think you would have in the account if you left the money to grow?
a) More than $102
b) Exactly $102
c) Less than $102
d) Do not know
e) Refuse to answer
Q2 Imagine that the interest rate on your savings account was 1 per cent per year and inflation was 2 per cent per year. After one year, how much would you be able to buy with the money in this account?
a) More than today
b) Exactly the same as today
c) Less than today
d) Do not know
e) Refuse to answer
Q4 Do you think that the following statement is true or false? “Buying a single company stock usually provides a safer return than a stock mutual fund.”
a) True
b) False
d) Do not know
e) Refuse to answer
The “Big Three” financial literacy questions were created by Professors Annamaria Lusardi of the George Washington School of Business and Olivia Mitchell, of the Wharton School of the University of Pennsylvania.
Answers: Q1 More than $102 (compound interest). Q2 Less than today (inflation). Q3 False (diversification).
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
THE SPECS
Engine: 2.0-litre 4-cylinder turbo
Power: 275hp at 6,600rpm
Torque: 353Nm from 1,450-4,700rpm
Transmission: 8-speed dual-clutch auto
Top speed: 250kph
Fuel consumption: 6.8L/100km
On sale: Now
Price: Dh146,999
Armies of Sand
By Kenneth Pollack (Oxford University Press)
Best Foreign Language Film nominees
Capernaum (Lebanon)
Cold War (Poland)
Never Look Away (Germany)
Roma (Mexico)
Shoplifters (Japan)
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs
Engine: 3.8-litre twin-turbo flat-six
Power: 650hp at 6,750rpm
Torque: 800Nm from 2,500-4,000rpm
Transmission: 8-speed dual-clutch auto
Fuel consumption: 11.12L/100km
Price: From Dh796,600
On sale: now
