Gulf Air CEO upbeat despite MPs' dismissal call

Gulf Air boss Bjorn Naf insisted on Friday that the airline’s board is “happy” with his performance despite stinging criticism from Bahraini MPs.

Speaking exclusively to Arabian Business, Naf said his position wasn’t under threat despite politicians calling for his dismissal earlier this year.

“So far, the board has given me and the management team the assurance and confidence they are happy with the progress we have made and where the airline is heading,” he said.

Naf, who took over as CEO and president in January 2008, added: “They have supported us and you can see that clearly by the two huge aircraft orders that we have made in the last year. If they wouldn’t have appreciated what we have accomplished the board would have taken a decision a long time ago.”

In January, the parliamentary financial and economic affairs committee urged Gulf Air’s board to find a chief with the “qualifications and experience” needed to manage a commercial airline.

The committee also said Naf had done little to improve the ailing airline following his appointment. It’s understood Gulf Air was losing $1 million a day during the second quarter of 2007.

A restructuring programme involving re-fleeting, redundancies and fewer routes was launched in 2007 to reduce costs.

According to Naf, the airline cut outgoings by 30 percent in 2008 despite high fuel prices, which peaked at $147 last summer, and the global economic downturn.

Naf also said the airline’s board was still hoping to break-even in 2010 , before adding he needed time to restore Gulf Air to profitability.        

“We need stability to ensure we can finish what we have started,” he said. “As the CEO, I am accountable for the performance and we need time. After three or four years you can better judge with no emotions on facts rather than hearsay.

“You cannot expect a change in CEO, the board or management and one year later have profits – not when fuel prices are $147 or if the global economy goes into recession,” he added.  

Responding to criticism of his tenure, Naf said the airline was only 18 months into a long-term turnaround strategy.

He said: “The board has given us a five-year plan which we have developed with a clear financial turnaround. From where we started, where we are now and where we need to go it’s a clear rolled out plan and it’s too early to ask for drastic measures.”

Read the full interview in Sunday's Arabian Business magazine.

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