Gulf Air further trims network as Arab Spring losses continue to mount

Another wholesale turnaround effort is underway at the perennially troubled Gulf Air. The airline, which lost more than BHD380 million (USD1 billion) between 2008 and 2010, suffered deep losses last year exacerbated by the Arab Spring. The exact scale of the losses has not been disclosed, but it is clear that the carrier's multi-year turnaround and plan to break even has suffered a major setback.

A decade ago, Gulf Air was one of the largest players in Middle East aviation. As its multi-national ownership disintegrated due to various governments choosing to focus on their own national carriers, Bahrain was left as the sole owner. Locked out of its old hubs, Gulf Air faced a new and increasingly hostile competitive environment. It has also suffered due to high fuel prices, poor traffic demand and the recent unstable local and regional political situation, which continues to rumble on in Bahrain.