Proposal on Bahrain's Gulf Air rejected

Zawya

29-01-2025

Bahrain - A proposal to study the possibility of selling part of Bahrain's national carrier, Gulf Air, to private investors with Bahrain Mumtalakat Holding Company retaining more than 51 per cent has been rejected by MPs.
The recommendation by Strategic Thinking Bloc spokesman Khalid Bu Onk was met with strong opposition during yesterday's weekly session of Parliament.
The veteran parliamentarian said the aim was to reduce government's financial support for the airline while also restructuring its management and governance to enhance performance and profitability.
'The primary motivation behind the proposal is to alleviate the financial burden Gulf Air imposes on the state's general budget,' said Mr Bu Onk.
'Reducing subsidies to Gulf Air will allow the government to allocate resources more efficiently, ensuring better utilisation of public funds,' he added.
'The sale of a minority stake would create an opportunity to reform the company's board of directors and restructure its executive management.
'Changes are crucial for transforming Gulf Air into a more dynamic, future-ready organisation.'
Mr Bu Onk said that by involving private investors, Gulf Air could benefit from enhanced efficiency, improved performance and increased profitability.
'Private sector involvement tends to drive innovation and operational excellence, and this would ensure that Gulf Air remained competitive on a global scale.
'The initiative would contribute to the broader development of Bahrain's economy, fostering growth for both Gulf Air and its subsidiaries.
'This is not just about Gulf Air, it's about creating ripple effects that stimulate the entire aviation sector and related industries in the country.'
However, Taqadumi bloc member Dr Mahdi Al Shuwaikh termed the proposal 'absurd'.
'All airlines in the region are state-owned for the obvious reason that they propel other vital sectors with no regard to loss or profitability,' he explained.
'If 49pc is sold to investors, then they will certainly want a say in how the airline is managed, even if Mumtalakat continues to own the majority shares.
'What if the private investors demands sacking Bahraini employees to reduce costs and increase profits? That's possible as they will have a say in how the airline should be run.
'What if investors decide to pull out at a certain point, who will take up their shares and what if no other investors are interested?'
Dr Al Shuwaikh said MPs should focus on reducing losses through a comprehensive plan or approach, not sale.
'The plan should include profitable destinations, entering new markets and revolutionising services.'
* Separately, a proposal to tighten checks on violations by motorbike delivery riders and enforce health standards for food delivery boxes was postponed.
The proposal by Strategic Thinking Bloc member Dr Mariam Al Dhaen aims to address the increasing traffic violations by some motorcycle delivery riders and to establish stricter health standards for the food delivery boxes attached to these motorcycles.
The proposal, unanimously endorsed by Parliament's foreign affairs, defence and national security committee, chaired by Hassan Bukhammas, seeks to enhance road safety and ensure proper handling of food being transported to the public.
Talks on the proposal was postponed as Dr Al Dhaen has been admitted to hospital for an undisclosed condition.
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