In a bid to find its own niche and shed its loss-making past, Gulf Air is embarking on a strategic remake that has been widely anticipated since the appointment of former Royal Jordanian chief executive Samer Majali.

Majali rolled out the realignment, including an attempt at massive cost savings, in Bahrain today.

Regional air service features heavily in the new Gulf Air plan. Majali introduced Embraer regional jets to Royal Jordanian, helping the airline optimize its route structure as it became a profitable carrier. Majali has continued talks with the Brazilian aircraft maker since moving to Gulf Air.

The airline is in the market for around 15 regional jets. The airline also is looking to increase its narrowbody fleet. Majali told reporters the airline was in talks with Airbus and Boeing about potential adjustments to orders already placed.

The new plan would have Gulf Air focus on regional, short- and medium-haul operations. In that respect, the airline also hopes to make itself more attractive for potential membership in a major alliance.

Unprofitable routes are being shuttered, including several medium- and long-haul destinations. The network will grow, however, with plans to reach 56 cities, up from 43 in the current structure.

This is only one in a series of restructuring attempts by Gulf Air management, who have generally tried and failed to achieve the desired results.

Gulf Air is finding itself squeezed between regional mega-carriers, such as Emirates, Etihad, and Qatar, and the growing number of low-fare airlines in the region, such as Air Arabia, Jazeera, and flydubai.

The new Gulf Air plan aims to put the airline on a sound financial footing by 2012; Majali says that without these measures, the airline would face BD1 billion (Bahrian dinars) in losses in the coming five years.

Artist's concept: Gulf Air