How are you positioning the airline in the market?
Our strategy is not to compete on the ultra-long-haul flights that some of our neighbours are doing. Our strength is in the regional market. We have higher frequencies to the Gulf countries.
Of course, we do have the Boeing 787-9, which is capable of longer flights and Bahrain is positioned well to be a hub for east-west traffic, with a good airport. But we concentrate on connectivity and destinations that make sense for us and that serve Bahrain.
Are labour shortages affecting your airline?
Yes, they are having a significant effect, especially in Europe. They are affecting our on-time performance and they are creating issues in baggage handling. And it is not just a single flight to Europe affected. There are always connecting or return flights to consider, and this amplifies the problem.
Unfortunately, I don’t see the issue going away quickly. When you think of the time it takes to recruit and train people to have the skills and safety mindset that aviation requires, it is clear that the situation will remain for some time.
Going forward, there are a lot of factors involved in staffing requirements from new technologies to traffic growth, and it is impossible to predict what will happen.
Diversity is another aspect of this. What is the airline doing in this regard?
We support diversity and IATA’s 25by2025 initiative. But this is not about employing women just to make up the numbers.
If they want to be a pilot, they need to attain all the necessary skills and qualifications for the job. And throughout aviation, there is a need to reach the right levels of safety understanding. Very specific skill sets are required in most aviation jobs. But the point is that the jobs are open to everybody. There is inclusivity in the opportunity.
At Gulf Air, some 40% of our staff are female. At our headquarters, there are several departments headed by women. They are empowered.
But all we are really concerned about is safety, efficiency, and performance. Your gender, race, or religion are not relevant in that sense. Can you do the job? And if you are doing a good job, you will be promoted as a natural part of your career progression.
Again, though, that requires inclusivity in the opportunity. Women must have equal access to promotions. At Gulf Air, we provide that access.
Does investing in sustainability initiatives make business sense?
Sustainability and business sense go hand-in-hand. We all live in this world and the world is suffering. Carbon emissions are causing temperatures to rise. Ultimately, the extreme weather events this causes will be a problem for aviation and for all businesses. It is a problem that we have to solve.
Sustainable Aviation Fuel (SAF) is effective when it is available. We have used SAF in Rolls-Royce engines on our Dreamliner 787-9 and when we have done SAF flybys for the Formula 1 Grand Prix events. But availability is the problem. I am not aware of any production facility in the Middle East so when we have bought SAF, we have bought it from Europe. That’s not logistically viable on a regular basis.
And, of course, it is also extremely expensive. SAF is 3–4 times the price of Jet A-1. Who is going to pay for that? As a business, it is not possible to absorb that cost in a competitive market. But it hard to pass on to the passenger for the same reason. But somebody has to pay. We have to solve that challenge quickly to create the demand that will improve SAF supply.
Still, we are supportive of the Fly Net Zero by 2050 goal, and we will do everything we can to reduce emissions because in the years to come it is emitting carbon that will make you uncompetitive. Emitting carbon will be expensive, hurt your brand, and reduce your customer base.
Governments and airports can help. Unnecessary taxation and charges add to an airline’s cost base and prevent an airline from fully exploring all sustainable initiatives. We are paying mega-bucks for policies and services that aren’t what they should be.
Investing in a greener future | Airlines. (iata.org)
