Gulf Air CEO Teases U.S. Launch as Expansion Plans Gather Pace

07.10.2024 - 19:21 / skift.com / Gordon Smith

Gulf Air is gearing up for significant expansion as it grows its network and strengthens its position in the hyper-competitive Middle East market. 

Speaking to Skift, Group CEO Jeffrey Goh confirmed that the airline is considering additional widebody planes to support ambitious growth, with the United States firmly in its sights.

The carrier was one of the first commercial airlines in the Middle East and will celebrate its 75th anniversary next year. However, in recent decades, Gulf Air has been overshadowed by its larger neighbors in Qatar and the UAE. The fresh management team, led by Goh, is aiming to put Bahrain back on the global radar.

“In the case of the United States, we are looking at it very keenly. But flying to the U.S., you have to address many regulatory hurdles,” Goh said. “We are doing that. We have connectivity ambitions, I have a list. The U.S. is one of many destinations on our list.” 

The CEO added that he had his “fingers crossed” that a North American route could be launched in 2025.

Bahrain’s aviation market is relatively small but strategically important. The Kingdom is positioned at a crossroads of global air routes and is well-placed to tap into Europe-Asia traffic flows. For example, a stopover in Bahrain can add just 90 minutes to the typical flying time between London and Bangkok.

Despite its east-meets-west location, Gulf Air has faced financial challenges in recent years. The company struggled to achieve profitability amid competition from regional giants including Emirates, Qatar Airways, and Etihad. 

Pressure has been mounting on Gulf Air to prove those who doubt its long-term financial viability wrong. Goh, who took on the CEO role last year, hinted that with the “re-calibration” he was enacting, the state-owned carrier would begin to turn a profit by 2027.

“We are very clear about where we want to go in the future. We’ve come up with two very clear strategic pillars. One is about connectivity and the other is about customer service excellence,” he said during a later panel session at the Routes World aviation conference in Bahrain.

“We want to have a disciplined approach to our growth. We have seen so many times that capacity has grown ahead of demand. If you remain disciplined in ambition in that regard, there is a slice of the pie for us to have. The market is big enough for us to participate in that growth.”

Goh’s optimism follows a strategic review in which the new chief executive redefined the carrier’s mission. The airline is now more focused on promoting inbound tourism to Bahrain, an archipelago of around 30 islands. It is roughly equivalent in size to Singapore. Currently, 70% of Gulf Air passengers transit through the capital Manama, but Goh said the