Could job losses become reality at Gulf Air?

Gulf Air CEO Samer Majali

Gulf Air will kick off its realignment programme in 2010 to the cost of a number of its employees, its CEO has said.

The airline’s chief Samer Majali, alongside Gulf Air’s chairman Talal Al Zain, outlined a three year strategy that they hope will turn the troubled company into a financial success, during a press conference recently.

But Majali warned that redundancies would be an inevitable part of the turnaround process.

“This programme will require some tough decisions as we look to address what remains a challenging marketplace. We will be reviewing all cost elements that do not provide equivalent or greater value and within that context we will be looking to significantly re-size our workforce over this three year period.

“This will be done through natural attrition, retirements, the ending of contracts and other associated measures. Some redundancies may be inevitable, in which case we will aim to redeploy individuals elsewhere within the company.”

Majali added that the airline will do its best to retain “the best and most productive talent, safeguarding the jobs of Bahraini nationals and expats who continue to work hard for Gulf Air’s long term success and future”.

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In his first three months as Gulf Air’s chief executive, Samer Majali executed a ‘structural review’, which saw the airline re-enter the Iraq market and streamline operational costs.

However, despite the changes, the Bahrain-based airline remains reliant on government support in order to stay afloat.

As a result, the airline’s long-term strategic plan, will start with the domestic market.