Abu Dhabi announces Gulf Air withdrawal

Dermot Davitt

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Bahrain and Muscat airports could benefit from joint ownership

Abu Dhabi plans to pull out of its share in Gulf Air over the next six months, the government confirmed today. The carrier, which returned to profit just last year, will proceed with joint ownership from the Bahrain and Oman governments.

Gulf Air is still a major force at Abu Dhabi International airport, while Gulf Air's budget airline Gulf Traveller is based there. The move could consolidate Gulf Air's position at Bahrain and Muscat airports. It is thought unlikely that Gulf Air would give up its slots at Abu Dhabi and Gulf Air CEO James Hogan said that the move would not affect the airline's strategy.

He said: "For the wide Gulf Air family - our customers, our staff and our suppliers - the key issue is how we are run; and that will be business as usual. We will continue to build upon our successes, enhancing our brand and our services to reinforce our position as the leading airline in the region. In the last three years, we have made massive strides in our business performance. We have done that by focusing on our customers, on our staff and on our services. We will continue to do so into the future."

Hogan welcomed a joint statement from the Kingdom of Bahrain and the Sultanate of Oman, in which they committed their support for the airline.

Abu Dhabi launched its own airline Etihad last year, based at Abu Dhabi airport. Because of the rapid route expansion of the carrier plans are being finalised for the creation of a new Etihad terminal, which will substantially add to the retail space on offer at the airport. The move follows the opening of the new terminal two and of the Gulf Traveller concourse. The airport also plans to redevelop airside retail in the existing terminal.

While Gulf Air provides a strong international passenger mix for Abu Dhabi Duty Free, Etihad's expansion into new territories is expected to vary even further the passenger profile. New Etihad routes to Brussels and Toronto open in October, the first such routes for a Middle Eastern airline, and it plans to add routes to Johannesburg, New York and China, moves which would have an impact on the consumer mix at the airport.