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
- Norton Rose Fulbright moves London head to Dubai
- DSG ‘ready to implement Smart Dubai Strategy’
- Iraqi women protest new draft law
- Bahrain police 'face more danger in line of duty'
- Saudi names Brotherhood as terrorist group
- Qatar outraged over terror claims
- Bahrain PM condemns exploitation of children
- Qatar will not alter foreign policy: source
- Bahrain accuses Iran of fomenting trouble
- 'Put security before rights' in Bahrain: publisher
- 'Hizbollah trained Daih blast suspect'
- Key terror blast suspects named in Bahrain
- $2.6m Royal Fund for martyrs set up
- Bahrain to draw up new anti-terror laws
- GCC ROW: Qatar voices surprise over envoys pull out
- GCC tobacco tax rise ‘will fuel illicit trade’
- Saudi, UAE, Bahrain withdraw envoys from Qatar
- Bahrain explosion draws global condemnation
- GDN photographer hurt in blast is discharged
- Iran playing increasing role in Bahrain unrest
- Bahrain launches 6-point plan to fight terror
- Sisi gives sign he will run for president
- New Saudi clamp on energy drinks
- Health insurance must for Saudi visa
- Qatari doctor gets 7 years jail in UAE
- Family violence law articles approved in Bahrain
- Credit card thief jailed in Bahrain
- GDN photographer hurt in Bahrain explosion
- Bahrain King orders crackdown on terrorists
- Bahrain's 4-year development plan on track