Bahrain Air, the first privately owned airline in the Persian Gulf said operations have been suspended and it will liquidate, giving into mounting competition and dwindling traffic from larger carriers controlled by the state.
Bahrain Air said in a statement after a specially held general shareholders meeting that the “unstable political and security situation” in the Persian Gulf led to “sustained considerable financial losses.”
According to the airline, all flights on Tuesday were suspended and stranded passengers had to work out their own flights to get to their destinations.
On it’s website on Tuesday, the airline said it was “a sad day for all shareholders and employees, and for our loyal and valued guests.”
Bahrain authorities asked the carrier to suspend flights to numerous destinations when political unrest began in 2011, and the airline said it was unsuccessful in receiving compensations it had requested.
Bahrain Air’s breakdown is the opposite of the fortunes of Qatar Airways Ltd. and Emirates, Etihad Airways, the state-owned Middle Eastern companies that have broken into global airlines to go up against established network carriers.
According to Bahrain Air, which started operating in 2008 flying to Dubai, it suffered from lapses in traffic to and from the nation. As well as restrictions to operate on several routes cost the airline 4.5 million Bahrain dinars ($11.9 million) in revenues it lost since since December until now.
Bahrain Air is run by seasoned airline executive, Richard Nuttall, who has twenty years experience in the airline industry with stints at Cathay Pacific Airways and Kenya Airways Litd. The company’s chairman is Sheikh Mohammed bin Abdullah al Khalifah.