Gulf Air targets 15% cost-based reductions
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Gulf Air has announced that it has accrued significant cost-savings in 2011 across its business operations resulting in £42m.
With a successful initiative rolled out in 2010, the airline is looking at 2012 for adopting cost-efficiency measures and is targeting a further 15% reduction in its cost base; it has already achieved a savings of £11.6m between January and May this year.
“The areas of focus in this initiative include functions of operations, services, products, fleet maintenance, fuel savings, contract negotiations and manpower optimisation,” said Samer Majali, CEO of Gulf Air.
During 2010-2011, Gulf Air reduced its costs by 12% on the back of a revenue generation of £672,000. The arrival of new A320 fleet fitted with fuel efficient and environment-friendly engines have also helped it to achieve a total fuel savings equivalent to £2.3m.