Gulf Air A320. Courtesy, Airbus

Bahrain-based Gulf Air will launch a major cost-cutting plan and focus increasingly on regional services.

In a statement issued Tuesday, the carrier said it intends to strengthen its Middle East and North African (MENA) services, target 24% in cost savings by year end and simplify its fleet structure.

The restructuring was foreshadowed by October’s announcement of a BD185 million ($494 million) government cash injection in the loss-making national carrier. Lawmakers also talked of halving the current 3,800 workforce and reducing its fleet from 39 to 20 aircraft. In November, Gulf Air reduced its outstanding orders with Airbus and Boeing and CEO Samer Majali resigned.

Few details of the restructuring plan were given in Tuesday’s statement. However, the carrier said the network’s realignment would result in it “moving away from low-yield transit traffic and concentrating on high-demand and high-yield, point-to-point routes to connect Bahraini businesses with regional markets.” It would aim to have the largest network within the MENA region.

This strengthening of its core network would be accompanied by fleet optimization and streamlining of its organizational structure. The fleet would retain both twin- and single-aisle equipment.

“Gulf Air’s workforce requirement will be aligned to meet the operational, maintenance and administrative needs of the revised fleet and network,” the statement added.

“Right-sizing will be implemented across all levels of the organization and will be done on a performance-based review and individual job assessment against business-critical requirements. Priority will be on retaining the most productive employees with focus on maintaining key talent.”