MANAMA: Gulf Air president and chief executive Andre Dose resigned yesterday, plunging the airline into crisis.
Chairman Mahmood Kooheji, Mr Dose, board members and management officials were locked in talks until around 11pm last night, without conclusion.
They are due to meet again today, but as of last night, Mr Dose's resignation was still on the table. Sources said the resignation followed allegations made against the management team, but would not elaborate.
"With what happened this morning, the management had no choice but to resign, because they don't think it is a healthy situation to go forward with such allegations being made against them," they said.
"Mr Dose has submitted his resignation and the board does not have a clue what to do about it.
"The board of directors have not made a decision to accept the resignation or not.
"They do not have a clue when they wake up tomorrow morning who is going to manage the company, if Andre Dose does not.
"Nobody knows whether Gulf Air still has a chief executive. It is in limbo."
A Gulf Air official said directors and management had been in talks throughout the day.
"Gulf Air board of directors and Gulf Air management have been in constant meetings throughout the day, discussing various issues," said head of corporate affairs and of the president and chief executive's office, Hisham Abu Alfateh.
"Until 11pm, no decision has been made regarding most of what has been discussed and how to move forward.
"Therefore they both have decided to continue their discussions tomorrow."
The crisis comes days after Gulf Air confirmed that it was helping police with inquiries into a criminal investigation into suspected financial irregularities, spanning several years.
UK-based forensic auditors Kroll are also understood to be going through the airline's books with a fine toothcomb.
It is understood that Mr Dose had clashed with the board over his authority to run the airline.
Neither Mr Kooheji nor Mr Dose were available for comment last night.