Gulf Air signs five-year MRO software deal with US firm

Gulf Air, Bahrain's national carrier, yesterday signed a five-year deal to use maintenance, repair and overhaul (MRO) software supplied by Trax USA.

The companies refused to reveal the value of the contract, but Emirates Business learned from sources that it could be worth between $1 million (Dh3.67m) and $2m.

A Gulf Air official revealed the airline was planning to operate extra flights to Iraq while three flights in the Gulf region could be axed because of falling revenues. The extra flights may start by April end. The carrier has 35 aircraft and operates in 28 countries, and is on the verge of starting new flights to Europe.

The purchase of the Trax software is one of the cost-cutting measures the company is implementing, while the introduction of new flights and the scrapping of unprofitable ones are parts of a realignment strategy.

"Three new routes to Iraq were launched recently and the firm is looking to start two more to the country. It is also exploring starting new routes to Europe," said the source, who wished to remain anonymous. "A special team has been set up to consider which routes should be scrapped and a decision is expected in this quarter.

"While passenger traffic remains high on the routes that are under review the revenues have dipped substantially and the company could take a decision soon."

Gulf Air is expecting to add two more aircraft to its fleet by the end of April. One plane will be delivered this week and the other is due next month. The airline will have rights to use the Trax software for five years. The partnership agreement was signed by Jose Almeida, President and CEO of Trax, and Jasim Al Marzooqi, Gulf Air's Director of Special Projects.

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