Thursday, June 7, 2012

25

SENSE
SAVE IT
Sameer Nass

WITH RAJI

L ets Share Vie ws

GFs demand of BD 664m was rejected by the Parliament. However, Economic and Financial Affairs Committee of the Shura Council has recommended to approve BD221m (one third of the demanded amount) Recommendation awaits a discussion at the Shura Council and the government to finally approve the same.

Khamis Al Muqla
President, Gulf Marcom Group

Vice Chairman, Nass Corporation and BCCI Board Member

seem to do analyse losses of the What welevel.economyislevel, to dothelook at theGF onpicmicro What we need is larger ture the macro from where these losses will be nothing when compared to the impact it can have on the economy of the country on the whole and its future. A national carrier is an essential part of the business infrastructure of any developing country, apart from telecommunications, and GF is no different. Air transport is a vital pillar of a successful economy. When we look at the financial performance of GF as an individual company it is poor. But we have to place it in the larger frame, which will help us realise the dire need to support the airline. I urge the government to support GF to the maximum level possible. We shall not forget that GF supports a lot of other industries which include commercial businesses, developments, industries and service sectors including tourism the key segment. Merger of national carriers can also be a solution, provided it is studied in depth for its viability. National security is of paramount importance and any loss is ignorable when compared to the security threats, hence calling off Iran/Iraq routes is justified.

Bahrain Air and GF could with Amerger ofBoth airlines are arm and thebe thought interone functioning as a local other as an national arm. facing financial crunches, and pouring money without a strategy will not work. Real time investment is a must to any economy and GF still has an opportunity to bounce back, but pumping in money is not the sole solution. It must match with plans in place. Ours is a service oriented country and we need an airline to promote it. Business thrives on these segments and GF must be revived and retained to attract investors and travelers. Stopping financial aid to GF is not a solution to the crisis as the scenario of airline industry worldwide is not easy anymore. What Bahrain needs is a strong, self sufficient and independent international carrier and shrinking the airline does not match this need. Even limiting destinations will not help while a full fledged expansion might work wonders. The management hassles must be addressed and privatisation of the company could also help. Iran/Iraq were successful destinations and they should not have been cancelled. We should have viewed the routes commercially and must have detached it from politics. Even after we cancelled those routes how sure are we that we have achieved the purpose, when we have other routes and airlines aiding the businesses and passengers from these countries?

Dr Akbar Jaffari
Chief Executive Officer, Jafcon Consultants for Productivity Improvement

is important to and vital to ensure Itthathighlyrun efficiently, salvage GFismoreitaaisnecessary conit is though it not major contributor to the countrys economy. GF is tributor to the economy with its satellite businesses and local employments. The value is not a determinant factor as GF has not been making money for years now and nothing happened to the economy. It is a negative contributor sure, but in terms of employment and satellite businesses, it is a necessity. Country needs such sectors to complement its business axes as economy does not solely rest on single elements. The company is associated with the history of the country and it has areas of strengths, good will and soft capital. We cannot outright decide to close down GF, instead we should find a way to support them. But definitely the airline should be monitored and we should not ignore the fact that the current management alone is not responsible for the present crisis. What we have are accumulated problems from over forty years. There should be some sort of strict governance in place and a close watch on its behaviour on financial, operational and legal issues must be in place.

Jawad Y Alhawaj
Chairman, Alhawaj Group

of GF GF RevivalBahrainswill not happen overnight. Wiping not from map is not acceptable; instead ways to correct it must be discovered. Starting GF from zero is good for country as the airline has a historic association of over 60 years with the country and it is our responsibility to revive it. Authorities must take strong and urgent steps towards this as GF is a vital part of the Kingdoms economy. The matter is just not about the revenue, but also about the brand and even losses and debts are no excuse for closing down the airline.

Gulf Air is an inseparable part of the Bahraini milieu. Will the airline get back to its days of glory? The coming days will tell us