GULF Air is seeking a government bailout to help finance a new strategy to pilot the airline out of the red.
Officials have knocked on the door of the Shura Council to back them in their new three-year turnaround strategy.
The council offered its backing to Gulf Air's management on Wednesday during a special meeting, pledging that councillors would do whatever possible to ensure that the new strategy was implemented as soon as possible.
Figures presented to parliament last week suggested the airline was expected to post $500 million loss (BD189m) this year - the equivalent of $1.36m (BD518,000) a day.
"We will have a meeting with Gulf Air management and Bahrain Mumtalakat Holding Company, under which it comes, to get an insight into the company's critical financial position," said council financial and economic affairs committee chairman Khalid Al Maskati.
"There is a plan to fix faults in the company and correct mistakes, but it needs financial backing.
"We would back Gulf Air to get it from the government," he said.
"Finances are required to help the airline develop business and get out of the tunnel it is in at the moment.
"Everyone should take into consideration that the company's contribution to the GDP is around six per cent.
"Gulf Air employs a lot of Bahrainis and any harm to it in the future would jeopardise their jobs and that's something no one wants to see - us, the company's management or the government," the councillor pointed out.
Mr Al Maskati praised the recovery plan, saying he hoped it would be implemented soon.
"It basically involves rescheduling the travel routes, depending on small and medium aircraft for medium-business areas to cut costs and introducing new routes that are popular in the market.
"Significant innovative ideas have been carried out by Gulf Air such as introducing services to Najaf, for example.
"From figures presented I have seen how popular it is amongst Bahraini and other GCC travellers."
The meeting between Gulf Air management and council members will take place this week.
The GDN reported last week that expatriates would be the first to go under the new plan, with workforce cuts starting within a few months.
Bahrainis nearing retirement will be offered good packages to encourage them to leave the company.
The new measures have been drawn up following the arrival of new chief executive officer Samer Majali, who officially began work on August 1.
Parliament financial and economic affairs committee head Abduljalil Khalil, who first unveiled the plans, said he had been impressed with Gulf Air's new action plan.
Mr Khalil said it was the first time MPs had been given a "real plan" designed to steer the airline back into profit.
The MP also confirmed that some of the airline's loss-making routes were expected to be scrapped, claiming they cost millions to operate and brought just thousands of dinars into the company.
However, Mr Khalil stressed that although the plan looked good on paper, MPs had not been told where money would come from to fund the rescue strategy.
Mr Majali, former head of Royal Jordanian and son of former Jordanian prime minister Abdelsalam Majali, took over the reins of Gulf Air from former president and chief executive Bjorn Naf.
The former chief executive predicted last November that the airline would make profit by 2010.
During his tenure, MPs launched a probe into corruption in the airline, which announced in 2007 that it was shrinking its network and cutting jobs in a bid to reduce losses.
However, the investigation was postponed on June 1 to avoid shaking confidence in the carrier during the peak summer months.
The airline warned last August that action would be taken against employees who shirked their responsibilities or were counterproductive to its goals.
At the time, Mumtalakat chief executive officer and airline chairman Talal Alzain claimed it had no plans for mass layoffs, but warned that it would not be afraid to ditch the deadwood.
Mr Alzain also said that the airline was committed to protecting the jobs of Bahrainis and that supporting local talent was the only way the company could improve.
But the Gulf Air Trade Union claimed at the time to have information that up to 1,500 workers were facing the axe.
alaali@gdn.com.bh
