LAXintl
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Gulf Air CEO Quits

Fri Nov 30, 2012 12:35 am

Samer Majali, who was tasked in 2009 with restructuring the Bahraini airline has resigned as chief executive.

Seems following the appointment of a new board and government cash injection earlier in November, Majali strategy did not match that preferred by the new board.

It was only two weeks ago also that GF cancelled its order for 20 A330s, and reduced its 787 requirement.

Story:
http://www.arabianaerospace.aero/majali-quits-gulf-air.html

=
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liftsifter
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 12:39 am

Wow. I'd love to see Majali back at RJ. He sure has a knack for the airline industry.
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3rdGen
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 2:27 am

Sad story all the best to him. He was the best hope, just goes to she what's real mess that airline is in. Also many bad circumstances.
لا اله الا الله محمد رسول الله
 
iah59
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 2:34 am

Why isn't Gulf Air as huge as Emirates Etihad or Qatar?
 
justinlee
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 2:43 am

I have taken GF HKG-BKK back in the 90s for several times. At that time they were setting high standards for carriers. What a pity to see GF in trouble all these years...
 
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3rdGen
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 2:44 am

Because Bahrain doesn't have the money the other three do. And GF missed out on that boat. In any case it's not a new entity it's been around for over 60 years, been there done that I guess, biggest airline in ME at one point. Bad management etc.
لا اله الا الله محمد رسول الله
 
iah59
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 2:53 am

Ahh I see. good to know.
 
LAXintl
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 4:22 am

Quoting liftsifter (Reply 1):
I'd love to see Majali back at RJ. He sure has a knack for the airline industry.

Well he is Jordanian, however its not like he left RJ legacy in the best shape either, as they have been suffering last few years as well. While GF is a real mess 3 years into his "restructuring" mandate.

Quoting IAH59 (Reply 3):
Why isn't Gulf Air as huge as Emirates Etihad or Qatar?

At one time Gulf Air was the premier (and luxury) airline in the region.
It was formed by BOAC in the 1950s and subsequently became the national airline for Abu Dhabi, Bahrain, Qatar, and Oman.

However over the years the various states withdrew their participation in the carrier as they launched their own airlines.

With the withdrawal of its these national share holders the carrier lost one hub and market after another having to shrink with its remaining network until today where it left with solely its Bahrain base.
From the desert to the sea, to all of Southern California
 
liftsifter
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 4:51 am

Quoting LAXintl (Reply 7):

When he left, RJ was on track to greatness, with the likes of TK. A massive global recession and an uprising spanning the entire Middle East is what brought down RJ.
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LAXintl
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 5:06 am

Like TK ? ha ha ha.

TK is a 200 plane airline with a county of 75 million. RJ is a 30 plane airline from a country of 6 million.

RJ at best is a niche player in the Levent, not some global enterprise.

The argument can very well be made, RJ under Majali was left in a rather precarious state with very expensive refleeting and a long and thin on frequency network not very adapt to handling a shock. In otherwords the underpinnings of the enterprise and its business plan were too reliant on good fortune to fly in a competitive world.

Then fast forward to GF, what did he really accomplish in the last 3 year? Seems one year it was to be a global airline, another year regional RJ airline focused on secondary markets, and now more recently primarily an A320 narrow body operation still serving a diverse network.
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liftsifter
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 5:54 am

If you flew RJ in the early 2000's and then flew under Majali, it was a whole new ball game. RJ's route map was continuously growing, and at a steady pace, to sustainable destinations. Enter Dabbas, price hikes on all routes, especially critical routes to the network, like ORD, BKK, LHR and JFK. Reduction of frequencies as well as no long term plan for a recovery. Dabbas also chose not to hedge fuel costs, which would have been beneficial every year, as the price of fuel continues to rise. RJ is now close to the brink of non-existence, I am confident Majali would be able to put RJ on the right track again by balancing the route map.

Regarding the fleet, Majali's 787 choice was the right choice... If they arrived on time. The aircraft have been delayed by four years, with the first expected late 2014, might push early 2015.

Overall, Majali recreated RJ, an airline nobody knew about post OneWorld.
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3rdGen
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 5:49 pm

The choice of 787 wasn't Majali's, it was the govt. That's the entire problem with GF, it is run by the govt as an instrument of the state. There were a number of routes that were opened for no other reason than the govt wanted connectivity, there was no viable commercial reason. The CEO of GF better be ready to do nothing more than chose the IFE and seat type for his aircraft.

The 787 deal was signed as a political gesture between Bahrain and the US. With 12 330s on order what was the need for all those 787s, especially when Majali's plan was to run mostly 320s and regional jets and build a strong regional network. His idea was good, in fact it was great. The "new" GF under Bahraini leadership had inherited the largest route network in the Gulf. At one point there was no easier way to get around than GF. QR, EK, and EY had their sight sets further afield. And they were ignoring their local markets. That was GFs chance to pounce on the local market and to build a strong foundation for future growth further field (thats what most normal airlines do). In fact GF had already identified certain markets 2 or 3 years ago that QR, FlyDubai, EY have only just recently entered or are entering.

Problem is with all the events of the Arab Spring and the events in Bahrain in particular the plan could never be implemented. It was fate. Iraq and Iran were GFs biggest markets, due to political issues with those countries all flights to destinations in those countries were stopped, overnight (7 of GFs most profitable destinations, gone). GF was one of the first back into Iraq, and they were doing very well.

But the entire region has moved forward and GF unfortunately has seriously lost whatever little precious it had going for it. OH well, it was a great ride. I seriously think that at some stage you need to put a sick dog to sleep, there's no point going on, let her rest and let everyone enjoy the good memories from the past. In any case the GF that was is no more, this is really a new entity and it might be better to change the airlines name and start afresh rather than lingering with the ghosts of the past.
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readytotaxi
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 6:21 pm

Quoting LAXintl (Reply 7):
At one time Gulf Air was the premier (and luxury) airline in the region.
It was formed by BOAC in the 1950s and subsequently became the national airline for Abu Dhabi, Bahrain, Qatar, and Oman

I remember my time working LHR in the 70's & 80's, it was highly regarded, very Classey.
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bjorn14
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 7:23 pm

Quoting LAXintl (Thread starter):
GF cancelled its order for 20 A330s,

Does this mean everyone else's slot moves up?
"I want to know the voice of God the rest is just details" --A. Einstein
 
cloud4000
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 11:33 pm

Quoting IAH59 (Reply 3):
Why isn't Gulf Air as huge as Emirates Etihad or Qatar?
Quoting LAXintl (Reply 7):
At one time Gulf Air was the premier (and luxury) airline in the region.
It was formed by BOAC in the 1950s and subsequently became the national airline for Abu Dhabi, Bahrain, Qatar, and Oman.

That was the problem. 4 hubs in close proximity to each other? It was a pain in the ass to travel from US to South Asia, often requiring two aircraft change -- BOS-LHR-AUH-MCT-DAC. Still it was king of the Middle East until EK, QR, Eitihad ate its lunch and then some. Now it's the flag carrier of tiny BAH.

It's a shame but the airlines are a dog-eat-dog business.
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Viscount724
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RE: Gulf Air CEO Quits

Fri Nov 30, 2012 11:49 pm

Quoting cloud4000 (Reply 14):
Quoting IAH59 (Reply 3):
Why isn't Gulf Air as huge as Emirates Etihad or Qatar?
Quoting LAXintl (Reply 7):
At one time Gulf Air was the premier (and luxury) airline in the region.
It was formed by BOAC in the 1950s and subsequently became the national airline for Abu Dhabi, Bahrain, Qatar, and Oman.

That was the problem. 4 hubs in close proximity to each other? It was a pain in the ass to travel from US to South Asia, often requiring two aircraft change -- BOS-LHR-AUH-MCT-DAC. Still it was king of the Middle East until EK, QR, Eitihad ate its lunch and then some. Now it's the flag carrier of tiny BAH.

It's a shame but the airlines are a dog-eat-dog business.

Flight International article on GF from July 1976, soon after they introduced the L-1011. BA had sold their majority interest in GF a couple of years earlier and they were then owned 25% each by the governments of Bahrain, Oman, Qatar and the UAE. Their L-1011s had a very low-density configuration (40F, 171Y 8-abreast, total 211) plus about 10 seats in a first class lounge.
http://www.flightglobal.com/FlightPD...%27&scrollbar=0&page=1&view=FitH,0
http://www.flightglobal.com/FlightPD...s=0&scrollbar=0&page=1&view=FitH,0
http://www.flightglobal.com/FlightPD...s=0&scrollbar=0&page=1&view=FitH,0
http://www.flightglobal.com/FlightPD...s=0&scrollbar=0&page=1&view=FitH,0
 
bjorn14
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RE: Gulf Air CEO Quits

Sat Dec 01, 2012 6:47 pm

If that bridge between BAH and DOH ever gets built GF will really be toast,
"I want to know the voice of God the rest is just details" --A. Einstein
 
N503JB
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RE: Gulf Air CEO Quits

Wed Dec 05, 2012 2:28 pm

Quoting liftsifter (Reply 8):
Quoting LAXintl (Reply 9):

I am kinda agree liftsifter, in term of business on track and earning great profit back to the period when majali as RJ CEO. And at that time, peacefully surrounding in the levant, RJ expanding healthily.

Its nothing funny, especially when laughing on someone who is smaller than other, it make kind of look down and to humiliate other.
Beside the fleet and number of passenger carrying yearly, RJ and TK is always can't compared. In term of population, position, history as well as internal political issues. I worked for both company, at least RJ is respect to their foreigner staff more than TK does, and RJ does have international cabin crew since many year ago which TK just start recently. And TK turk crew can't communicate at all and they just a trouble maker, RJ crew is nice, professional and team work.

Best Regards
N503JB
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hohd
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RE: Gulf Air CEO Quits

Wed Dec 05, 2012 2:50 pm

One of the largest market for GF was India and they struggle there. They have pulled from most cities, except BOM, MAA and DEL and these are primarily O&D types or to Dhahran.

Still they are often the cheapest to LHR from/to India.
 
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enilria
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RE: Gulf Air CEO Quits

Wed Dec 05, 2012 2:55 pm

Quoting IAH59 (Reply 3):
Why isn't Gulf Air as huge as Emirates Etihad or Qatar?
Quoting 3rdGen (Reply 5):
Because Bahrain doesn't have the money the other three do. And GF missed out on that boat. In any case it's not a new entity it's been around for over 60 years, been there done that I guess, biggest airline in ME at one point. Bad management etc.
Quoting LAXintl (Reply 7):
Ahh I see. good to know.

It's also fair to say that EK and EY took huge bets and it is rare for an established company in business for 60 years to take those kinds of risks. At this point, Gulf Air is superfluous. EY probably isn't going anywhere and EK seems solid, so GulfAir is in deep trouble beyond providing a few prestige non-stops as a State airline..
 
catiii
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RE: Gulf Air CEO Quits

Wed Dec 05, 2012 3:20 pm

I know some of the people that have been brought in as part of the new restructuring team in the last few months and they're good industry veterans from highly successful restructuring efforts in the past. They have some real cultural (corporate culture, not Bahraini culture) challenges going forward. The emphasis on Bahraini only employees is a noble one, but doesn't strike me as realistic in a country of 1.3 million people and in the globalized environment.
 
LAXintl
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RE: Gulf Air CEO Quits

Wed Dec 05, 2012 4:20 pm

More events at GF.

Parliment voted on Tuesday to replace the entire GF board, and also tear up the contracts of two consultancy firms recruited by the airlines management.

http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=343104

A good summary of the feelings:
"Gulf Air has no strategy and the change of chief executives over the past five years shows that no-one knows who is running Gulf Air"

Quoting bjorn14 (Reply 16):
If that bridge between BAH and DOH ever gets built GF will really be toast,

The existing bridge to Saudi Arabia sees folks using Damman regularly as well. Though I suspect it can go the other way also, with Saudi's using Bahrain if ever needed.

Quoting N503JB (Reply 17):
at least RJ is respect to their foreigner staff more than TK does, and RJ does have international cabin crew since many year ago which TK just start recently. And TK turk crew can't communicate at all and they just a trouble maker, RJ crew is nice, professional and team work.

First your comments are personal opinions, but regarding foreign staff, since the beginning carriers like RJ have had to recruit abroad to find competent staff as Jordan is a tiny country, but a company like TK instead has a huge home labor market, so its need for foreign staff is minimal. Very different circumstances.

Quoting Catiii (Reply 20):
I know some of the people that have been brought in as part of the new restructuring team in the last few months

Are they the ones that just got fired ?
From the desert to the sea, to all of Southern California
 
catiii
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RE: Gulf Air CEO Quits

Wed Dec 05, 2012 4:22 pm

Quoting LAXintl (Reply 21):
Are they the ones that just got fired ?

No. They're the ones who are being brought in by the BOD to replace those that have left.
 
LAXintl
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RE: Gulf Air CEO Quits

Wed Dec 05, 2012 4:25 pm

Quoting Catiii (Reply 22):
No. They're the ones who are being brought in by the BOD to replace those that have left.

Well there is no BoD any longer.

Article says two foreign consultancies just got the axe yesterday.

Sounds like there is some major winter cleaning going on.
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catiii
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RE: Gulf Air CEO Quits

Wed Dec 05, 2012 5:25 pm

Quoting LAXintl (Reply 23):
Well there is no BoD any longer.

Article says two foreign consultancies just got the axe yesterday.

Sounds like there is some major winter cleaning going on.

The Parliament voted in a non-binding vote to replace the board and tear up the contracts. The board is still in place and the consultants still employed.
 
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3rdGen
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RE: Gulf Air CEO Quits

Wed Dec 05, 2012 5:29 pm

Another serious issue with GF, cited from the GDN article in LAXintl's post MP

----

"Adel Al Asoomi claimed Gulf Air was the only airline in the world with 24 vice-presidents.

"British Airways, which has 520 aircraft, only has eight vice-presidents. But Gulf Air - which has a fleet just five per cent of that size - has 24 vice-presidents, each earning BD14,000 monthly.""

----

There was talk of a lot of corruption within the airline as well, with funds disappearing and so on. It looks like things may finally be cleaned up over there.
لا اله الا الله محمد رسول الله
 
sankaps
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RE: Gulf Air CEO Quits

Wed Dec 05, 2012 8:59 pm

Quoting LAXintl (Reply 21):
Parliment voted on Tuesday to replace the entire GF board, and also tear up the contracts of two consultancy firms recruited by the airlines management.

Any idea which are the two consultancy firms being referred to here?
 
bjorn14
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RE: Gulf Air CEO Quits

Wed Dec 05, 2012 9:23 pm

Quoting LAXintl (Reply 21):
with Saudi's using Bahrain if ever needed.

They use Bahrain alright...for wild party weekends. BAH as much more liberal liquor laws than the Kingdom.
"I want to know the voice of God the rest is just details" --A. Einstein
 
135mech
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RE: Gulf Air CEO Quits

Wed Dec 05, 2012 9:31 pm

Quoting IAH59 (Reply 3):
Why isn't Gulf Air as huge as Emirates Etihad or Qatar?

I can also imagine after all of the other states pulling away and starting their own airlines, [Bahrain is a small land area] so if it were up to them to enlarge their fleet solely on their own abilities...they are restricted by the lack of land space available. I did enjoy my deployed time there and loved the city of Manama!

Regards,
135Mech
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bastew
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RE: Gulf Air CEO Quits

Wed Dec 05, 2012 9:32 pm

Any update on the rumoured route cancellations (eg BKK)?
 
135mech
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RE: Gulf Air CEO Quits

Wed Dec 05, 2012 9:42 pm

Quoting bjorn14 (Reply 16):
If that bridge between BAH and DOH ever gets built GF will really be toast,

Why would that be? You already have the bridge to Saudi and routing to King Khalid... I just looked it up on Google Maps, looks like it would be closer to King K....what would the difference be?


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