Gulf Air may reduce the size of its big aircraft orders as the airline looks yet again at revamping its strategy and reducing its losses.

"In light of our new network, we will be engaging our manufacturers in discussions," CEO Samer Majali said in an interview. Gulf Air has placed orders for 15 Airbus A320s, 20 A330-300s and 24 Boeing 787-8s.

Majali just weeks ago took over as CEO after Gulf Air ousted his predecessor, Bjoern Naef. The former head of Royal Jordanian is the fourth chief executive in three years to attempt to turn the airline around. Gulf Air, which is fully owned by Bahraini sovereign wealth fund Mumtalakat, is said to be losing about $700,000 per day.

According to Majali, passenger traffic fell 3% since the beginning of the year, indicating that Gulf Air is not keeping pace with the continuing growth of other airlines in the region. Yields are down by up to 20%.

The new CEO says Gulf Air is looking at "any link-up with like-minded carriers" beyond alliances and bilateral code sharing. But sources in the industry say it will be tough for Gulf Air to find a merger partner. Observers expect the Bahraini government to demand employment guarantees at the significantly overstaffed airline, making the combination unattractive for other airlines. Kuwait-based, low-fare carrier Jazeera Airways is interested in buying or merging with another carrier, but has ruled out Gulf Air as an option.

Gulf Air has various strategy shifts under its belt. Former CEO André Dosé wanted to put the carrier through a tough cost-savings and shrinking exercise, but was forced out after a clash with shareholders. Naef, his successor, promoted exactly the opposite, pushing for expansion and placing the large aircraft orders. Majali seems to want to put on the brakes again, but it still is not clear to what extent he has shareholder backing.

Jens Flottau jflottau@freenet.de

Gulf Air may reduce the size of its big aircraft orders as the airline looks yet again at revamping its strategy and reducing its losses.

"In light of our new network, we will be engaging our manufacturers in discussions," CEO Samer Majali said in an interview. Gulf Air has placed orders for 15 Airbus A320s, 20 A330-300s and 24 Boeing 787-8s.

Majali just weeks ago took over as CEO after Gulf Air ousted his predecessor, Bjoern Naef. The former head of Royal Jordanian is the fourth chief executive in three years to attempt to turn the airline around. Gulf Air, which is fully owned by Bahraini sovereign wealth fund Mumtalakat, is said to be losing about $700,000 per day.

According to Majali, passenger traffic fell 3% since the beginning of the year, indicating that Gulf Air is not keeping pace with the continuing growth of other airlines in the region. Yields are down by up to 20%.

The new CEO says Gulf Air is looking at "any link-up with like-minded carriers" beyond alliances and bilateral code sharing. But sources in the industry say it will be tough for Gulf Air to find a merger partner. Observers expect the Bahraini government to demand employment guarantees at the significantly overstaffed airline, making the combination unattractive for other airlines. Kuwait-based, low-fare carrier Jazeera Airways is interested in buying or merging with another carrier, but has ruled out Gulf Air as an option.

Gulf Air has various strategy shifts under its belt. Former CEO André Dosé wanted to put the carrier through a tough cost-savings and shrinking exercise, but was forced out after a clash with shareholders. Naef, his successor, promoted exactly the opposite, pushing for expansion and placing the large aircraft orders. Majali seems to want to put on the brakes again, but it still is not clear to what extent he has shareholder backing.

787 artist's concept: Boeing