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Bahrain's sovereign wealth fund moves Gulf Air ownership to govt
February 7, 2010
Bahrain's sovereign wealth fund Mumtalakat said it would transfer ownership of the country's loss-making national carrier Gulf Air to the Bahraini government.
Talal Al Zain, chief executive of Mumtalakat, told Reuters an investment in the airline industry did not fit with the fund's investment strategy.
"Given it's in the airline industry, it is not a high-return investment but more of a strategic investment," he said. "You will never have more than single-digit returns in this industry," Al Zain told Reuters over the phone.
Gulf Air was established as a regional airline but has struggled to find its niche. Previous shareholders Oman, Abu Dhabi and Qatar gave up their stakes, after which ownership of the carrier was transferred to Mumtalakat in 2007.
Original Posting At: TradeArabia
Talal Al Zain, chief executive of Mumtalakat, told Reuters an investment in the airline industry did not fit with the fund's investment strategy.
"Given it's in the airline industry, it is not a high-return investment but more of a strategic investment," he said. "You will never have more than single-digit returns in this industry," Al Zain told Reuters over the phone.
Gulf Air was established as a regional airline but has struggled to find its niche. Previous shareholders Oman, Abu Dhabi and Qatar gave up their stakes, after which ownership of the carrier was transferred to Mumtalakat in 2007.
Original Posting At: TradeArabia
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