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

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.

A Path to Profitability?

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 company is seeking to “drive international interest in Bahrain.” 

Gulf Air Network Expansion

Driving the awareness-building effort will be growth in the number of airports Gulf Air serves. The route map currently includes 60 destinations, but Goh said that number will grow by 25% over the next five years. 

The carrier recently added two cities in China, (Shanghai and Guangzhou), Iraq (Najaf and Baghdad), and Munich in Germany, alongside seasonal routes to Geneva and the Greek island of Rhodes.

More are on the way. “We will continue to grow to the east and west, and north to south, including to Africa,” Goh said. “Gulf Air is building connectivity, but we are also inviting other airlines to the Kingdom. Competition is always welcome; it makes us stronger.”

However, growth is not always linear and Goh’s action plan could involve cuts to unprofitable routes. “There are a few on our watchlist,” he revealed, without being drawn on specifics. 

”We are a nimble organization that assesses opportunities all the time, including the opportunities of not flying to places that we have been flying for many years. There will be markets where we will withdraw because they no longer make sense to the network and the aspiration of the airline.”

More Planes; More Places

Gulf Air currently flies Boeing 787-9 Dreamliners, however, Goh confirmed that the carrier is exploring options to add two additional variants of the 787 to its fleet. The shorter 787-8 and the stretched 787-10 would enhance long-haul connectivity, including possible entry into the U.S. market.

“There will be some destinations where a 787-10 or a 787-8 would make sense, and because of the restrictions in the global supply chain we have got to remain nimble to aircraft opportunities,” Goh said.

“Looking at the global supply chain, part of our network expansion program is what may be available in the secondary market, or in the primary market for that matter, that is suitable for our network.

“If we were to take a 787-8, we have to think about how we would move around some of the other aircraft so we can optimize [its] usage and use the -9 somewhere else. We are nimble in that regard. No decision has been made but we have made ourselves open to the availability of aircraft.”

Shaking Up Fleet Strategy

Gulf Air operates an all-Boeing widebody fleet, with a total of ten 787-9s. Two of these are currently grounded due to ongoing engine issues. The carrier has a further pair of -9s on order. In contrast, its narrowbody roster is an all-European affair. Gulf Air has 32 Airbus A320 and A321 aircraft, a mix of older-generation classic and new-type Neos, with nine more of the single-aisle jets on the way.

Despite the neatly defined Airbus-Boeing split, Goh suggested that the airline would be open to other widebody types if 787 deliveries from Boeing were to slip into the next decade. “Our current fleet composition is narrowbody Airbus and widebody Boeing, but we are constantly reviewing the industry situation, both from a [planemaker] perspective and also from an engine perspective. If Boeing were to say we cannot deliver your aircraft until [the 2030s], we’ve got to remain open to other opportunities.”

Premium Economy on Gulf Air?

Gulf Air is a relative outlier in its decision not to include a premium economy cabin across its fleet. However, rival Turkish Airlines has opted for a similar strategy, with its Chairman telling Skift earlier this year that it “will not have a premium economy product.” 

The team at Gulf Air appears a little more fluid in their thinking. With the growth of what Goh describes as the ‘bleisure’ traveler – those tacking a vacation onto the end of a work trip – the cabin layout could be about to change. Goh revealed that the airline is exploring how a premium economy cabin could be incorporated into the Gulf Air fleet.

“With the aircraft that are coming in, we are already committed to what the product looks like, but for future aircraft, it remains a potential business opportunity,” he said. “We need to understand which market will support a premium economy product, but we are looking at the opportunity.”

Gulf Air is not alone is pursuing significant growth. Speaking exclusively to Skift, Etihad CCO Arik De recently shared the Abu Dhabi-based carrier’s blueprint for expansion.