Manama, Dec 06: Gulf Air's board of directors approved yesterday a previously agreed plan by the government owners of the debt-laden airline to provide 45 million Bahraini dinars (USD 120 million) in emergency funding, Bahrain's Finance Minister said. "The board approved in its meeting today the previously-agreed funding... Which will occur by the end of the year," said Abdullah Hassan Seif, the finance minister of Bahrain, which is joint owner of Gulf Air with the Governments of Abu Dhabi and Oman.

Seif, who chairs gulf air's board, said the fresh money, which comes on top of the $238 million already pumped into the company so far this year, would go towards strengthening the airline's capitalisation.
He said that Gulf Air was on target to slash its losses in 2003 to about $53 million, almost half the 111 million-dollar loss recorded in 2002, and is expected to breakeven in 2004.

He was upbeat about the airline's business prospects, saying that there were no plans to reduce its workforce.

Gulf Air, founded in 1950 and today covering 45 cities in 33 countries, is in the first year of a three-year strategic recovery program, headed by president and chief executive James Hogan.
The Bahrain-based airline notched up debts of $700 million to the end of 2002 forcing its co-owners to pump in $238 million and defer debts.

Bureau Report