Bahrain Shura rejects $1.75bn Gulf Air bailout plan
Manama, December 25, 2012
An initial government request to inject BD664.3 million ($1.75 billion) into Gulf Air, the national carrier of Bahrain, has been officially rejected by the Shura Council, a report said.
Council members had delayed discussions on the airline’s bailout for seven months because of concerns over the government not presenting detailed plans on the spending process to the National Assembly, which consists of the council and parliament, according to the report in our sister publication, the Gulf Daily News.
The Cabinet unofficially withdrew the bailout request in October and replaced it with another deal to present the airline with BD185 million.
It appeared in October that parliament and the Shura Council would rubber stamp the cash injection, after the government outlined a major downsizing plan designed to reduce Gulf Air's losses from BD95 million to BD58 million a year by 2017.
However, the new bailout has been put on the backburner while parliament and the council focus on the national budget.
"We have to now focus on the national budget and see if something could be given to Gulf Air to help it continue and recover from losses," said the council's woman and child committee chairman Dr Abdulaziz Abul.
"The BD664.3 million was delayed for a reason and that's the absence of a detailed plan, which the government later provided demanding that we just present the airline with BD185 million. The members haven't agreed on the BD185 million too. It will have to be scrutinised further to ensure that money does not get squandered and is being spent on beneficial causes."
Financial and economic affairs committee vice-chairman MP Abdulhakeem Al Shammeri said the airline's future would be discussed "soon". – TradeArabia News Service
More Government & Laws Stories
- Bahrain approves women's rights law amendment
- Chinese men at centre of major Bahrain ATM fraud
- Expat recounts Molotov ordeal in Bahrain
- Bahrain's security forces 'strengthened'
- Salesman held for credit card fraud
- UAE police departments get ISO certification
- Six army officers killed in Egypt attack
- Bahrain-Taiwan bilateral trade hits $345m
- Bahrain 'loses $2.63m over human error'
- UAE summons Iraq envoy over Saudi comments
- Saudi clarifies no pilgrimage ban on Brotherhood
- Bahraini minister evades municipal council quizzing
- Terrorists' identities in Bahrain exposed
- Arab nations called to fight terror in unity
- Bahrain to fast-tract action against terror suspects
- Alwaleed Foundation backs women in politics
- Saudi 'must name and shame corrupt officials'
- Libya's ousted PM Zeidan on way to Europe
- Bahrain set for big eGovernment forum
- Ministries under fire for 'failing to implement projects'
- Bahrain finance minister to be quizzed over irregularities
- 2 policemen hurt in Eker blast
- Libyan parliament sacks PM after tanker escape
- Saudi sets up panel on labour disputes
- Sand-dredging bill is hit by funding row
- Saudi rejects Maliki's charges on funding militants
- Independent foreign policy non-negotiable: Qatar
- Bahrain to crack down on bogus investments
- Bahrain urged to set up national plan to fight cyber crime
- Galfar ex-CEO gets 15 years' jail over bribes