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NEW CEO TOUCHES DOWN IN BAHRAIN

July 8 - 14, 2009
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Gulf Weekly NEW CEO TOUCHES DOWN IN BAHRAIN

Gulf Weekly Stan Szecowka
By Stan Szecowka

GULF AIR's new supremo Samer Majali flew into Bahrain this week to meet and greet staff and hopefully make friends and influence the people who put paid to his predecessor.

The kingdom's sovereign wealth fund Bahrain Mumtalakat Holdings Company hopes Mr Majali's magical touch will bring good fortune to the airline and silence the critics who have been unhappy with its performance under former chief executive officer Bjšrn NŠf.

Industry pundits believe his high-flying track record will help him succeed where others have failed. Royal Jordanian airlines' chairman Nasser Lozi, who is losing his man, says Mr Majali's 'huge' efforts allowed the carrier to 'hold an eminent position' in the airline industry.

Mark Pilling, Editor of Airline Business magazine, who is well acquainted with Mr Majali, pictured above, said: 'He is a proven high-class CEO who has done wonders with Royal Jordanian.

'He has a good pedigree with a fantastic industry profile and is well known and respected. Gulf Air is clearly a challenge - there's a lot of politics and the airline is in bad shape, it has enormous competition right on its doorstep and is seeking a relevant position for itself in a competitive market.

'Is Samer the man for the job? Well, you wouldn't bet against him. If there was one Middle Eastern airline leader you would give a chance of putting Gulf Air back on its pedestal he would be the one.'

Company insiders told GulfWeekly that Mr Majali, the son of a former Jordanian prime minister, was 'excited and confident' that he could bring unity, stability and success to the loss-making national carrier as it strives to break even during a global recession which has rocked the profitability of airlines worldwide.

Gulf Air also faces stiff competition from Gulf-based airlines including Etihad and Emirates, alongside low cost budget outfits like Bahrain Air and Jazeera.

Mr Majail, who arrived on Sunday, was also on a house-hunting mission so that he can start settling down to life in the kingdom.

His resignation from Royal Jordanian Airlines does not come into effect until August 1.

The new man will take over the controls of Gulf Air within the next few months and until then, Talal Al Zain, Gulf Air's chairman, will manage the business in the temporary position of executive chairman.

Mr Al Zain said: 'Moving forward, we have important plans for the future of Gulf Air and we believe Samer is the right leader to take the airline forward as we move into the next phase of our strategy to rebuild the business.

'I'm delighted to welcome Samer to the team as he brings an exceptional track record of successfully managing a leading Middle Eastern carrier. His skills will help us to build towards a strong future for Gulf Air.'

Under Mr Majali's leadership, Royal Jordanian has been transformed into a highly successful and profitable business driven by a comprehensive strategy to modernise the airline's fleet and reshape its network of routes.

His achievements include bringing Royal Jordanian into 'Oneworld' in 2007, making it the first Middle Eastern airline to join a major global alliance which offers a wide range of air travel options and benefits by bringing together 10 of the world's leading airlines.

In addition, he managed the successful privatisation of Royal Jordanian, a first in the region. He has also served as President of the Arab Air Carriers Organisation (AACO) and chairman of the International Air Transport Association (IATA) board of governors.

A concerted campaign to oust former boss Mr NŠf finally proved successful when details of his imminent departure came on the day he celebrated his 44th birthday last Thursday.

Some industry pundits suggested that the Swiss airline executive had inherited a poisoned chalice when he took over in the summer of 2007, stepping up from his number two post as chief operating officer. His predecessor Andre Dose had announced losses at the company of $1m a day, before departing after just three months in the job.

Mr NŠf was instrumental in implementing a revamped network and also spearheading an initiative to boost the carrier's punctuality, which has improved under his command. He is said to have been 'extremely popular' with staff having improved company communication and team building initiatives ... but he was never able to win over detractors in parliament who were determined to oust him.

MPs had claimed Gulf Air management had allegedly hired inexperienced and unqualified expat staff, were unhappy about the airline's continuing losses and even called for an investigation into the way it was being run.

Several of Mr NŠf's senior colleagues have also left the airline in recent days.

Parliament's financial and economic affairs committee chairman Abduljalil Khalil told our sister newspaper, the Gulf Daily News, that Mr Majali would be 'given time' to showcase his capabilities. 'We officially demanded the removal of Mr NŠf and his crew a long time ago.'

Mr NŠf arrived back in Bahrain on Monday after celebrating his birthday with family and friends back in his home country of Switzerland. He told GulfWeekly that he had enjoyed laying 'the foundations of the new Gulf Air'.

It is now in the hands of Mr Majali to build the business back up.







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