Bahrain-based regional carrier Gulf Airhas begun the first steps to privatisation after its board gave approval to begin a feasibility study. The announcement coincided with the airline recording on 25 April profits for the first time in seven years. Gulf Air is in talks with a number of banks about the privatisation, although no advisers have so far been appointed.
The return to profitability in 2004 culminated a three-year turnaround programme, known as Project Falcon. The airline saw net profits increase to BD 1.5 million ($4 million) last year against a loss of BD 19.9 million ($52.8 million) in 2003. Debt was also reduced by 7.8 per cent to BD 41.7 million ($110 million) Gulf Air's 2004 performance was boosted by a 23.8 per cent increase in passenger numbers, rising to 7.5 million. Revenue in 2004 reached BD 476 million ($1,300 million), up from BD 385 million ($1,002 million) in 2003. Cargo revenues amounted to BD 53.3 million ($140.3 million), an increase of 20.4 per cent. The airline has a fleet of 34 aircraft and flies to 30 countries. It is in talks with The Boeing Companyof the USand Europe's Airbusto upgrade its fleet (MEED 8:4:05).
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