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Middle East Jet Fuel Conference

Discover the transformation of Gulf Air as it enters a new era with a fresh look. Explore their customer-centric approach, improved network, strategic alliances, cost control measures, and enhanced service delivery. Join Gulf Air on their journey to become a world-class airline.

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Middle East Jet Fuel Conference

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  1. Middle East Jet Fuel Conference James Hogan, President & Chief Executive 12th May, 2004

  2. Middle East • Government ownership and subsidisation • Mix of well established, young and start-up airlines • Low cost airlines – first entrant 2003 • No Global Alliance membership • No staff cut-backs • Heavy recruitment of cabin crew and pilots • Large aircraft orders • Development of Middle East as leisure destination

  3. New business model for Gulf Air • Three-year programme • Commercial platform • $238 million investment to recapitalise the airline • Key focus of strategy – customer focus, efficiency and profitability • Customer centric vision executed in every area of the airline

  4. Our Vision and Mission • To be a world class airline in which the cultural richness and traditions of Arabia are brought to life • To offer truly Arabian hospitality through genuine and respectful service, proudly given to create a personalised travel experience that will surprise and delight every Gulf Air passenger

  5. 3 Year Road Map Improved Network Strategic Alliances Yield Improvement Consistent Communication Profitability Motivated People Schedule Integrity Service Delivery Safety Marketing Mix Cost Control

  6. New Era, New Look - Safety • Safety before all else • Recently audited by: • US Department of Defense • Star Alliance • American Airlines • Qantas

  7. New Era, New Look - Network • “Can you get me there when I need to be there?”* • Daily frequency • Connectivity - 45 destinations in 34 countries • New destinations • Kochin, Bangalore, Kolkata, Zanzibar, Sydney, Athens, & Geneva (Royal Jet) • Building alliances • Oman Air, Saudi Arabian Airlines, Royal Jordanian, Olympic Airways, American Airlines, Qantas Airways, BMI British Midland, Cyprus Airways • Additional fleet

  8. New Era, New Look – Cost Control • Remarkable results in a very short time • Used both obvious and innovative means • Higher levels of cost control through • Streamlined operations • Improved business processes • Day to day fiscal discipline • Has facilitated flexibility to respond to a fast moving and dynamic market place

  9. New Era, New Look - Marketing • New livery • Destination marketing campaigns • ‘Arabian Experience’ • ‘World Experience’ • New look FFP • Multi segmented • Gulf Air three class • Gulf Air two class on A320s • Gulf Traveller (all economy, full service) • Sponsorship of ‘Gulf Air Bahrain Grand Prix’

  10. New Era, New Look – Service Delivery • Service delivery that consistently exceeds expectations • Innovation and Differentiation • Five star in-flight chefs • Sky nannies • E-check in kiosks • SMS notifications • Limousine transfers • Upgraded lounges • New catering standards • World Wide Contact Centre

  11. New Era, New Look – People • Empowering staff • Enhanced communications • More nationals • Oman – Worldwide Contact Centre and Gulf Air Holidays • Engineering apprenticeship • Graduate programme • National pilots programme • Pilot and cabin crew base in Abu Dhabi • Closing the skills gap through the knowledge transfer • Ethics and transparency policy • Cost of living adjustment • Bonus

  12. 2003 Report Card • RPKs up 14.5% • ASKs up 16.5% • Passenger revenue up 15.5% • Cargo revenue up 18.7% • Unit costs reduced by 8.2% • Debt/equity ratio of 2.6

  13. Profit Gulf Air today is run on a commercial platform Note: SH&E forecast BD52m loss in 2002

  14. Fuel • Fuel was Gulf Air’s second highest operating cost in 2003. It is forecast to be the highest operating cost in 2004 • Gulf Air’s forecast fuel consumption in 2004 is 260 billion USG • Approx. 63% of Gulf Air’s fuel uplift is from Owner States • Fuel tankering programme • Member of AACO fuel tender committee • Annual fuel price negotiation with suppliers

  15. 2004 Outlook • Profit • Customer Focus • Network • People • Business Process • Public Utility - EU

  16. Today’s Reality • Change or die! • Lead change or be a victim of change • New airlines • A dynamic region with huge potential

  17. Middle East Jet Fuel Conference James Hogan, President & Chief Executive 12th May, 2004

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