Cash Injection For Gulf Air

THE GOVERNMENT of Bahrain plans to give an extra $1 billion in fresh capital to national carrier Gulf Air, according to a spokesperson from the company.  A local newspaper has also reported that Bahrain’s King has authorised the finance ministry to raise the funds for the airline from local and international capital markets.
Gulf Air, despite having flown nearly six million passengers last year, has had d a very difficult financial period recently. It plans to break even in two to three years after making a loss of $502 million in 2009.  It now focuses on regional routes in the Middle East and is reported to be in the final stages of a decision to acquire a fleet of regional jets that will enable it to expand its new strategy.