Bahrain Air, the country’s first privately owned airline, said it has suspended operations and will liquidate, succumbing to dwindling traffic and mounting competition from larger Gulf carriers, Bloomberg reported yesterday.
The “unstable political and security situation” in the country led to “sustained considerable financial losses,” Bahrain Air said in a statement, following an extraordinary general meeting for shareholders. The company said it suspended all flights on Tuesday, and any stranded passengers will have to make their own arrangements to reach their destinations.
Yesterday was “a sad day for all shareholders and employees, and for our loyal and valued guests,” the airline said on its website late on Tuesday.
Authorities in Bahrain asked the airline to suspend flights to several destinations when political unrest erupted in 2011, and the company said it had unsuccessfully sought compensations.
Bahrain Air’s breakdown contrasts with the fortunes of Emirates, Etihad Airways and Qatar Airways, that have expanded into global airlines to challenge established network carriers. Bahrain Air, which began operations in 2008 with flights to Dubai, suffered from the lack of traffic to and from Bahrain, and restrictions to operate on many routes have cost the carrier 4.5mn Bahrain dinars ($11.9mn).