Putting Bahrain back on the aviation map

Ahead of the Bahrain International Air Show, TIM ROBINSON FRaeS reports on the Gulf region’s oldest flag carrier – Gulf Air, which in 2025 celebrates its 75th anniversary.

Despite the current challenges of conflicts in Ukraine and the Middle East, aviation supply chains and the workforce – air travel’s upward trajectory seems to have no limit after the near-death experience of that was the Covid pandemic. Passengers are expected to double between now and 2042 – to 18.6 bn people flying by air.

To that end in October, saw over 700 airports, airlines and suppliers from around the globe gather in the Kingdom of Bahrain for an essential part of the air travel calendar – Routes World – a forum for air travel professionals and matchmaking event for airlines and airports to plan future networks. Taking place at the Exhibition World Bahrain the three-day event featured a mix of airport and airline meetings networking, exhibition halls and a conference programme of airliner and airport executives.

Bahrain – an underappreciated pearl of the Gulf

Gulf Air is the regions oldest airline – having been founded in 1950. In 2000 Air Atlantique repainted this de Havilland Dove/Devon as part of the airline’s 50th anniversary celebrations. (Austin Brown via Air Atlantique)

This year’s host of Routes World was Bahrain – a desert kingdom originally created by freshwater springs and made wealthy by pearl diving and the gold trade. Despite its historic aviation heritage (the first aircraft landed in Bahrain in 1918, it boasted the first airport in the Gulf opened in 1927 and Concorde landed in 1976) the small Kingdom has been overshadowed by the growth of the neighbour UAE’s meteoric rise as a global aviation hub.

Indeed, Bahrain’s flag carrier Gulf Air, which in 2025 will celebrate its 75th anniversary was also the region’s original airline, when it was owned by four countries, Bahrain, Oman, Qatar and Abu Dhabi. It also nurtured a certain Sir Tim Clark for a full decade from 1975 to 1985 before he went on to help found Emirates. The rest, as they say, is history.

Today, Bahrain’s flag carrier flies a modest fleet of 50 aircraft, split between ten Boeing 787-9s and 32 Airbus A320neo family aircraft – compared to the ‘Big 3’ Gulf airlines of Emirates (258 aircraft), Qatar Airways (256) and Etihad (96).

However – Bahrain now has ambitious plans to put itself back on the map as a global leader for tourism, trade and business – with its own ‘Vision 2030’ initiative to diversify its economy – and the airline, airport and government all working more closely together. One high-profile example of this is the Bahrain Grand Prix, which now draws F1 fans from around the globe every year and with the circuit also hosting other motorsport events.

This strategy already appears to be bearing fruit with government figures released in October show this transformation is already underway, with non-oil growth now running at 2.8% year on year. Interestingly, the biggest performing sectors were transportation and storage – up 12.9% YoY, with total foreign direct investment up 9.0% YoY.

Having hosted the coveted Routes World in October, this is also expected to boost Bahrain’s tourism and business prospects as the world’s airlines executives and route planners experience what this nation can offer as a tourism and business destination.

Meanwhile, in November, the country also sees the Bahrain International Airshow touch down – again providing a forum for business and helping raise its profile compared to its more well-known Gulf neighbours.

Bahrain also has other strengths as its geostrategic position in the Gulf also serves as a major naval base and ally for the US and Royal Navy – particularly given current events and the ongoing threat to the Red Sea maritime traffic.

Writing a new chapter for Gulf Air

Jeffrey Goh is the former CEO of Star Alliance. (Gulf Air)

Parachuted into the hot seat to head up this small kingdom’s flag carrier is ex-Star Alliance CEO, Jeffrey Goh, who at Routes World 2024 outlined his vision of how he plans to turnaround this small but welcoming airline – which has struggled with loss-making and a rapid turnover of CEOs. Goh notes that it was his international experience of managing an airline alliance with 28 members that was particularly attractive for Gulf Air as it seeks to exploit synergies and closer collaboration.

His task has been eased significantly by the merger of Gulf Air and Bahrain International Airport (BAC), along with ancillary companies like Gulf Air Aviation Academy, MRO, cargo and its catering division, duty free, and airport services into a single group.

He explained that Gulf Air were interested in “How could you use your experience in choreographing these together, and then, once you have choreographed it, how do you then export the group internationally to generate better brand equity for the Kingdom? How could we export the competency of airport operations and airport management by the Bahrain Airport Company, to other airports in the world? How could we export the competency of catering services we provide by Bahrain airport services to other airports in the world?”

Goh went on: “It’s a very unique structure. It’s a phenomenal opportunity to bring the airline and the airport together. We know in this industry how often the airlines and airports don’t see eye to eye, but having the airline and the airport in the same group has allowed us to explore more seamless opportunities”. Currently Gulf Air represents around 70-75% of traffic at Bahrain International Airport.

With these parts of Bahrain’s aviation sector now working hand-in-hand, Goh says this means he can focus on two key missions for the group:

The first, he says, is “to become a positive contributor for the GDP of the Kingdom”. While Goh is coy (“I’ll let you figure it out”) over when exactly the airline will return to profitability other than “there is the ambition, at least in my under my watch, that it will become a profitable airline”, he hints that all airline start-ups typically have three years to show a turnaround and with him having taken the controls in February 2024 – this gives a potential deadline of January 2027 to go cash positive.

The second mission is to increase the international visibility and profile of Gulf Air and Bahrain – in alignment with the Government’s national aviation policies. Says Goh: “It’s very important for Gulf Air and the group to remain firmly placed in the international map”.

This will be achieved by building connectivity, not only with the airline itself, but also with the airport and attracting new airlines with the Kingdom’s Open Skies policy. Says Goh: “We welcome

competition. We believe that the market and the pie is big enough for us to have a slice and for us to participate in” adding “Gulf Air itself is building connectivity, but also inviting other airlines”.

Local heroes

An airy modern terminal and a dedicated play/gaming area at Bahrain International Airport. (Tim Robinson/RAeS)

Gulf Air itself allows the small Kingdom a flying ‘international billboard’ to its current 60 destinations says Goh, who says “Bahrain is a small island in a global map, but it can punch above its weight.” noting how the Government is investing in tourism and business facilities.

With 70% of passengers currently transferring through Bahrain, part of the strategy will be to increase stopover traffic. This already includes free guided city tours for any transit passengers with a connection of over five hours, with the small size of Bahrain and its efficient airport making this possibly. Goh is also revitalizing the previously neglected Gulf Holidays part of the Group to boost tourism – with multi-city stays as a way of allowing visitors to experience Bahrain’s warm welcome and cultural heritage.

With a new $1.1bn terminal that was officially inaugurated in 2022, Bahrain International airport now boasts one of most modern and passenger friendly experiences in the world. Goh says his personal record (without using VIP lanes or fast track) ‘from kerb to gate’ is just seven minutes – an impressive time for any international hub. (By way of comparison, this author managed it in under 14 minutes).

On the airline side, while not having the sheer scale of its Gulf rivals, Gulf Air enjoys some niche advantages – particularly in the warm Arabic hospitality it offers and its agility. For example, around 85% of Gulf Air pilots are Bahraini nationals – a sign of the ongoing aviation-mindedness and loyalty of locals to their original flag carrier. “We continue to have a very healthy pipeline. We are supported by an organisation called Tamkeen which is kind of an academy for apprentices and trainees to come through. We get good support from them. So that’s good we actually have a very high proportion of our pilots who are local.”

Goh however, is mindful, that there should be no complacency on what he calls a “talent war” in recruitment and retention that the global aviation industry finds itself.

Finally to complete a one-stop-shop of airline, airport, flight training, ground services and holidays, earlier this year it was announced that Gulf Air will be bringing its maintenance in-house with the construction of a new state-of-the-art 215,000sq ft MRO facility at Bahrain International Airport. In keeping with Goh’s aims of exporting Gulf Airs experience and competence to the wider world, this will also be available for third parties as well as the Gulf Air’s own fleet.

Disciplined and calibrated growth

Gulf Air business class. (Gulf Air)

Meanwhile for the airline itself the two strategic pillars going forward will be connectivity and customer service excellence.

On the airlines network and route planning Goh says the guiding principle will be “disciplined and calibrated growth” – warning how other airlines have overreached themselves by getting too greedy, too quickly. Flying to around 60 destinations with the latest added this year including Shanghai and Guangzhou in China as well as Munich in Germany, the carrier expects to add another 40 in the next five years to grow to 100.

Goh expects the first results of this network optimization and revamp to be visible by the end of 2025. Connecting east and west markets, as well as Africa will be key, with the US in the airlines sights, although he declined to give specifics on when a much rumoured US destination might be announced.

Gulf Air features a comparatively young fleet having had 12 aircraft delivered over the past 12 months. With a narrowbody fleet of 32 Airbus A320-family aircraft and ten Boeing 787-9s and a further nine A320neos and two 787-9s to be added in the near future, Goh is content that the short-haul fleet is now right-sized but concedes that the airline (which has average age of 6.8 years), may need a ‘few’ more Dreamliners – “we probably need a few more aircraft”.

Inside the cabin, the airline is already improving is passenger product, with free WiFi for passengers and the introduction of pre-ordering in-flight meals in business class. While the airline does not feature first class – Goh says “If you look at our business class seats in our widebody aircraft, it’s a very luxurious product”.

Biggest challenges

Retro livery on this Boeing 787-9 Dreamliner. (Tim Robinson/RAeS)

However, the airline also operates within a wider global air transport environment that is currently being facing three main challenges, according to Goh. The first, he says, is geopolitical tensions – but admits “that doesn’t affect every airline and that doesn’t affect every region of the world”.

The second, he says is supply chain issues – an issue that is affecting the whole of the airline industry says Goh – with “about 700 aircraft” currently grounded worldwide due to ongoing engine issues. “It’s no secret of how challenged the airline industry is in ensuring availability of aircraft. The global supply chain since Covid has been a chronic challenge. and I don’t think that this situation is going to improve, at least for the next two to three years.”

The third challenge he says is human resources and skills. “How do we manage manpower going forward? Following Covid, I think 20% of the workforce that left the industry will never return to the industry for a variety of reasons, and so that calls for more digitisation and more automation, particularly in airport frontline staff that have disappeared”. Goh went on “We’ve got to continue to invest in the people, and given that there is a talent war in the airline industry, we’ve got to make sure that we are able to develop and retain key talents”.

Summary

Writing a new chapter in the airline’s history. (Gulf Air)

While there is no doubt that on the face of it that competing directly with the big three megacarriers of Emirates, Etihad and Qatar (and the future airline powerhouse that is Saudi Arabia) would be a challenge for Gulf Air – Goh is confident that the growth in air traffic in the region will mean that there is enough passengers and business to go around for everyone. He says: “In 2018 IATA had predicted at the time that 4bn passengers would grow to 8bn in 20 years. Of course, we had the distraction and the disruption of Covid, but those 8bn passengers are not just going to disappear, and we believe strongly that there is a slice of the pie for us to participate in that growth.”

The airlines small size and warm welcome, make it a nimble and agile operator to carve out its own niche. “From Gulf Air’s perspective, competition is always welcome. It just makes us stronger and better”, says Goh.

Furthermore, with its integrated ‘one team’ approach of airline, airport, services, training and now MRO all under roof with one vision – something that many airlines would envy, this will allow Bahrain to punch above its weight and help recapture its status as one of the world’s leading aviation-focused nations. “We’re on a good trajectory where we need to be” says Goh.

Tim Robinson FRAeS




8 November 2024