Bahrain, Gulf Air prepare for more foreign capacity

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Dubai flag carrier Emirates announced 29-Aug-07 that it will increase its daily service to nearby Bahrain from two daily flights to three, all operated with widebody equipment. The increase will take effect in Sep-07. The announcement is good news for Bahrain, which is anxious to increase its tourism inflow, but further adds to the pressure being exerted on local flag carrier Gulf Air.

Even before the carrier’s new management ranks had determined that its long-haul operation was not viable, Gulf had focused on building a leading portfolio of intra-regional services as the cornerstone of its future.

In the recent period, regional competitors have increased their service to the island nation. Although Gulf still has the largest share of frequencies and seats from Bahrain to the rest of the Middle East, such announcements further undermine the central tenet of its business turnaround plan.

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