I think Gulf Air is in a huge mess, it lost so much money (billions of dollars) even during the boom years of the mid 2000s. It also lost all confidence in it by the public and customers. Even the parliament is blocking a lifeline and it seems just enough money will be pumped to sustain the airline till years end.
It's a pitty. All my travels are on Low cost and efficient Bahrain Air. Gulf Air had become synonymous with flight delays, old aircraft, horrible horrible food and embezzlement.
Very sad. Gulf Air used to be the leader and ranked along British Airways and Cathay Pacific. Not until the government naively handed the management of the airline to locals who had good intentions but knew nothing of running an airline.
It's difficult to say but the only option left is liquidation given airlines' finances globally and the civil unrest in Bahrain which will make it difficult for anyone to take interest and invest into GF.
Government should form a new private sector driven full service airline and sufficiently capitalized perhaps with Saudi Investors participating. Start from scratch.