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Bahrain Air goes into liquidation

Date Added: 14/02/2013  

Bahrain Air has announced the airline is set to go into liquidation, with the decision being made at an Extraordinary General Meeting held this week.

Shareholders of the firm revealed the company's immediate suspension of operations, as well as the decision to file for voluntary liquidation in accordance with the Kingdom of Bahrain's Commercial Companies Law.

The unstable political and security situation in Bahrain was blamed by the directors of the firm as one of the reasons for its failure, with a statement from the airline pointing out it has incurred significant financial losses as a result.

It read: "The airline is now being required to make immediate payments on past government debts or face closure at the same time as having its scheduled operations, both destinations and frequencies, being reduced considerably by the Civil Aviation Affairs in the Ministry of Transportation."

Bahrain Air pointed out that this move "effectively strangles the airline", due to the fact that it has a reduced by ability to generate the necessary revenues to make these payments, as well as to sustain long term profitability.

The company stressed that it is a sad day for everyone who has been involved with Bahrain Air over the course of the last few years.

It was noted by the firm that it helped to promote Bahrain as a business and leisure destination, as well as Bahrain International Airport as a passenger hub in line with the Kingdom's Economic Vision 2030.

"We have created a proud legacy, with one of the best records for on time performance and value for money in the region," said the statement from the airline, which went on to thank members of staff for their hard work for the firm.

A drop in the number of companies in the UK being declared insolvent was recently welcomed by R3, with president of the insolvency trade body Lee Manning noting company liquidations in 2012 was down four per cent from 2011.

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Posted by Miles Pritchard

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