Gulf Air's Iraq connections expand with Erbil routing - but is it the way ahead

A Gulf Air A320 left Bahrain at 14:00h local time today en route for Erbil, the Kurdistan capital in Northern Iraq.

On board was Samer Majali, the airlines new chief executive who joined from Royal Jordanian in August and the Iraqi ambassador to Bahrain and the Bahrain ambassador to Iraq.

The airline will operate three flights per week to Erbil, which is one of the fastest growing commercial cities in Iraq. Erbil is the third destination in Iraq that Gulf Air now flies to from its Bahrain hub following the launch of services to Baghdad and Najaf in September.

Majali had previously led Royal Jordanian into Iraq and enjoyed success from those routings. On arrival at Gulf Air, it is understood, he advised the troubled airline to look at the opportunities and had the experience to understand the security issues.

Majali and his top management team are currently working on a strategy to help bring the airline back into serious contention among the Gulf carriers. Speaking in Doha earlier this week Majali said the airline was in talks with both Boeing and Airbus about the orders made at Paris Airshow earlier this year. It is likely that the mix of aircraft may change rather than complete cancellations but Gulf Air says there is unlikely to be any decision on the fleet before the end of the year.

Gulf Air is fully owned by Bahrain's sovereign wealth fund Mumtalakat, and has 35 Airbus and 24 Boeing airplanes on order, but has said it is reviewing its orders as part of a restructuring.

The airline is also facing some labour disputes following the restructuring announcement. The union is reportedly calling on members and employees of the carrier to start a labour action on Nov 5. to protest against pay rises for senior management amid planned lay-offs. The lay offs have been denied by the airline.

But moves like today's to Iraq could herald a new start for Gulf Air. The importance of being the Pan-Arab regional carrier and serving routes like Erbil may be a major focus as the airline goes forward with its confirmed A320 orders.

The inaugural flight arrived in 2 hours 15 minutes. On arrival Majli said: “The Kurdistan region in the north of Iraq is prospering and peaceful and has significant tourism and business potential which we will to tap into. In anticipation of the expected rise in visitors to the region in the coming years, a new airport will open in Erbil in 2010 capable of handling 2.75 million passengers per year. Already there is an increase in the amount of executive accommodation available and private sector investment across a wide range of sectors in the region now totals more than US $16 billion. These are all clear signs that this region means business. My hope is for Gulf Air to support and take advantage of these opportunities, with Bahrain becoming the key GCC gateway for traffic from Asia Pacific and the Indian Subcontinent, the Middle East and Europe to Erbil.”