Gulf Air Says Will Break Even In 2010

Bahrain-based Gulf Air is poised to break even next year despite the financial downturn as regional air traffic continues to grow, a senior executive said on Wednesday.

"The industry is challenged and most airlines will take a beating but this region is growing in passengers and revenues. Gulf Air will definitely break even by 2010," Siah Joo Tan, Director of Corporate Development said.

"All indicators are showing towards that, even the 2008 financials show a record year," he said on the sidelines of an aviation summit, declining to give specific figures as results have not been officially announced.

CEO Bjorn Naf said in November that the Bahrain state-owned carrier would return to profitability by 2010, as a massive turnaround initiative it is undergoing starts to pay off.

The loss-making carrier cut its network and jobs in 2007 and started to renew its fleet, after announcing losses of more than USD$1 million a day.

"It is difficult to forecast this year just now but Gulf Air has set aggressive targets and with regional traffic growing, we are confident of equalling last year's numbers," Tan said.

The airline, which flies to 30 countries and has a fleet of 29 aircraft, has wet-leased four Boeing 777s from India's Jet Airways.

The first of the four will be delivered this week and the remainder every two months, he said.

"Leasing planes is a short-term measure to replace aging aircraft until we get our new planes," said Tan.

The carrier has 59 planes on order as it partially renews its existing fleet and plans to add three planes and three destinations each year until 2013.