santos
Topic Author
Posts: 414
Joined: Mon Dec 17, 2007 2:46 pm

Bahrain Air Files For Bankruptcy

Tue Feb 12, 2013 4:19 pm

According to Bahrain Air website:
"Bahrain Air held an Extraordinary General Meeting today at which the shareholders made the decision to announce the company’s immediate suspension of operations and to file for voluntary liquidation in accordance with the Kingdom of Bahrain's Commercial Companies Law."
Full news article on here:
http://www.bahrainair.net/

It's a shame for such another airline to go like that.
Probably the other gulf airlines are the blame for this? Or 2 airlines in such a small country just doesn't work?

[Edited 2013-02-12 08:38:41]
 
Tdan
Posts: 495
Joined: Mon Nov 28, 2011 9:36 pm

RE: Bahrain Air Files For Bankruptcy

Tue Feb 12, 2013 4:33 pm

Wow, surprised they didn't outlast GF! Bahrain Air was neither iconic, nor necessary when it started operations. I had always assumed it would be the vehicle that would eventually replace GF, but I guess not. The internal issues in Bahrain not doubt played a role, but Bahrain Air was a failed experiment from the beginning. Like Wataniya, these carriers should have never started.
We will ride this thunderbird, silver shadows on the earth, a thousand leagues away our land of birth... -Captain Bruce
 
gf777
Posts: 20
Joined: Thu Jan 22, 2009 1:17 pm

RE: Bahrain Air Files For Bankruptcy

Tue Feb 12, 2013 4:48 pm

It was just a matter of when, I was surprised they didn't go under two years ago!

Quoting Tdan (Reply 1):
surprised they didn't outlast GF!

Gulf Air is a government own company, so they kind of have a stronger back bone.
 
135mech
Posts: 410
Joined: Wed Oct 04, 2006 5:56 pm

RE: Bahrain Air Files For Bankruptcy

Tue Feb 12, 2013 5:35 pm

Quoting GF777 (Reply 2):
Gulf Air is a government own company, so they kind of have a stronger back bone.

Yes, but when politics prevents you from suceeding...

"The company sustained considerable financial losses as a result of the unstable political and security situation in Bahrain. In 2011, during Bahrain’s State of National Emergency, the airline was instructed to suspend flights to several destinations, and also suffered from the lack of traffic to and from Bahrain, and from the restrictions on the Saudi Causeway. Despite the Royal Decree number 18 for 2011 Article 5/10 regulating land, sea and air transportation during Bahrain’s State of National safety which states that all affected parties will be fairly compensated, the airline, despite making official claims, has received no compensation."

"The airline is now being required to make immediate payments on past government debts or face closure at the same time as having its scheduled operations, both destinations and frequencies, being reduced considerably by the Civil Aviation Affairs in the Ministry of Transportation. This effectively strangles the airline by simultaneously requesting payments and reducing its ability to generate the necessary revenues both to make these payments and to sustain long term profitability. The shareholders of the company have spared no effort to support the airline financially since its inception and to support the airline and Bahrain through the unrest in 2011."

And the final blow...

"The airline has also spared no effort to negotiate a solution with the Minister of Transportation (who is also an active board member of Gulf Air) "

You have no choice but to fold.

This is too bad, I really enjoyed my visit to Bahrain years ago too!

135Mech
135Mech
 
gf777
Posts: 20
Joined: Thu Jan 22, 2009 1:17 pm

RE: Bahrain Air Files For Bankruptcy

Tue Feb 12, 2013 5:49 pm

I agree with you 135Mech, but the fact is the airline was doomed the day they started their operation, Bahrain is small enough for just one airline and opening Bahrain Air was driven by individuals (ex Air Arabia) who thought they can copy what Air Arabia did in the UAE and the success they had. The bottom line Bahrain can't house two airlines.
 
AsoRock
Posts: 146
Joined: Wed May 31, 2006 4:00 pm

RE: Bahrain Air Files For Bankruptcy

Tue Feb 12, 2013 6:02 pm

That's just a pity. Bahrain Air was my only selected airline for regional low-frill travels, as I always made an effort to avoid Gulf Air and their horrible service whenever possible. It's a sad day for all those passengers who relied on Bahrain Air and their reliable onetime performance.
 
135mech
Posts: 410
Joined: Wed Oct 04, 2006 5:56 pm

RE: Bahrain Air Files For Bankruptcy

Tue Feb 12, 2013 6:36 pm

Quoting GF777 (Reply 4):
I agree with you 135Mech, but the fact is the airline was doomed the day they started their operation, Bahrain is small enough for just one airline and opening Bahrain Air was driven by individuals (ex Air Arabia) who thought they can copy what Air Arabia did in the UAE and the success they had. The bottom line Bahrain can't house two airlines.

I agree with you also! Your country is nice but small, feeding two airlines would be tough to keep it working.

Cheers!

135Mech
135Mech
 
skyguyB727
Posts: 100
Joined: Sun Sep 23, 2007 3:45 pm

RE: Bahrain Air Files For Bankruptcy

Wed Feb 13, 2013 7:11 am

Maybe the BN code is jinxed. Braniff went bankrupt twice as BN. Now Bahrain Air went under with the same code.
 
KU747
Posts: 157
Joined: Fri Mar 28, 2008 12:22 am

RE: Bahrain Air Files For Bankruptcy

Wed Feb 13, 2013 12:26 pm

Quoting skyguyB727 (Reply 7):
Maybe the BN code is jinxed. Braniff went bankrupt twice as BN. Now Bahrain Air went under with the same code.

I think so too.

I also agree that Kingdom Bahrain cannot house to airlines and I also believe that due to several low cost carrier in the region such as Jazeera Airways, Fly Dubai, Air Arabia and Nas Air, it would be very difficult for Bahrain Air to compete under the restrictions of the Bahrain civil aviation.
707,727,73all,741,742,743,744,752,753,762,763,77all,300,310,319,320,321,332,333,343,346, L10,L15,DC10,MD11,SSC,VC10
 
klwright69
Posts: 2343
Joined: Mon Jan 17, 2000 4:22 am

RE: Bahrain Air Files For Bankruptcy

Wed Feb 13, 2013 3:42 pm

The Gulf countries are oversaturated with airlines! That is the basic problem.
 
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Qatara340
Posts: 1539
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RE: Bahrain Air Files For Bankruptcy

Wed Feb 13, 2013 5:11 pm

Of the countries in the Arabian Gulf, Bahrain is probably the poorest and least privelaged. And over the past two years, violent protests let many people to avoid the island kingdom at all costs. Its no wonder that GF cut half its routes and fleet and now BN being bankrupt.
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