Gulf Air redefines network strategy for new year

This follows on-going product and service innovation, a strong customer focus driven by an energetic, enthusiastic workforce, all working within the commercial framework the management team has established over the past two years.

The network has been strengthened with more flights, the fleet is being used more efficiently, and in 2004 Gulf Air carried a record number of passengers increasing passenger revenue by 27.5 per cent.

Fareed Al Alawi, Gulf Air's Vice President Network, said: "This year we will consolidate on the positive strides made in 2004, which necessitates further optimisation of performance across the business and the network, to minimise the impact of the record high fuel price and grow our market share in the face of increasing competition."

Like carriers world-wide, Gulf Air is taking serious steps to counter these pressures on our continued operations. "Part of this process entails the review and evaluation of our network. At this critical juncture we are looking at ways in which we can use our fleet and resources in the most effective way to ensure that we serve our customers and meet their needs while maintaining our operation on a commercial basis," he said.

As a first step, Gulf Air will be implementing changes to its network in Africa and Asia, and has decided to terminate operations to Casablanca in Morocco from 24 March and services to Colombo in Sri Lanka from 26 March this year.

This decision will allow us to re-allocate our assets more effectively, strengthening our network still further in key areas, either by increasing flight frequencies to key destinations or by assigning the aircraft for service on high demand sectors.

"However, our first commitment remains to our customers and steps are already in place to minimise any potential impact of this decision," he said. "Assistance will be provided to ensure seamless travel with minimal disruption when the change is implemented at the end of March. Representation will be retained in Colombo through the appointed General Sales Agent (GSA), and the office in Morocco will remain open until other measures are in place."

The withdrawal strategy is presently being finalised and full details will be discussed with personnel in both countries during the course of the next few days. The tremendous contribution of everyone in these stations is recognized and appreciated by senior management and every effort is being made to ensure that all individuals affected by the decision are cared for appropriately.

In closing Mr Al Alawi noted: "The dynamics within the global industry and the markets are constantly in flux. This requires our continuous assessment and flexibility to act correctly in the circumstances. We are optimistic about the year ahead and believe that we will be able move forward again as the fuel price stabilises and market conditions correct themselves."