Bridging the Gulf

Gulf Air CEO Samer Majali talks about creating a new breed of traveller, onboard WiFi and the future of premium class travel

by Joe Mortimer | September 4, 2010 

What’s the most exciting thing happening at Gulf Air this year?

The changes; 2010 is the first year of the implementation of our strategic changes and the shift in the direction of the company, as well as the introduction of the new destinations this year (Addis Ababa, Basra, Isfahan, Colombo and Aden) and the new fleet. We’re adding 10 new aircraft (eight A320s and two E170s) and phasing out nine older aircraft.

We’re also improving the service levels of the airline and its exciting seeing the reaction of the passengers in terms of the new equipment that we are using, the better timings that we have from a schedule point of view, and the improvement in the record for flights leaving on time.

Finally, the investment we are making in human resources in terms of getting a smaller, productive workforce, that is much more attune to our customers’ needs is also very exciting.

What can you tell us about the new strategy and the overall product?

Our definition of the overall product is changing away from the classic understanding of air travel. People seem to define the product as basically the service you get on board and the seat and that’s it. To us that’s not it. It’s an important part, but it’s not ‘the’ part.

We think that our product starts from our schedule. Responding to people’s need to travel and when they want to travel is the most important thing.

Getting to where they want on a non-stop service and getting them there when they want to fly. That’s the starting point. This is what the bulk of travellers want.

A very small percentage of them want to be pampered in luxury, but generally they want to travel when they want to travel to the place they want, in a clean aeroplane, with good service and in the end, they have got to feel they have got value for money. That is our product definition.

We intend to be the largest Middle Eastern carrier in terms of the number of flights and number of destinations served within a three-hour radius of Bahrain in addition to doing long-range operations.

By doing so we are trying to create a new market. Rather than poach traffic from other people, we want to create a new market of people who did not travel before because of the expense.

That sounds ambitious – can you elaborate?

The expense of travel is not just the ticket, but also the hotel and everything else. If we give you the ability to travel everywhere in the region – go in the morning, do your business and come back in the evening – that halves the price of that particular trip and therefore may convince you to take it, whether its for shopping, or to attend a meeting, or whatever you want. That’s our new proposition.

Tell us more about Gulf Air’s Falcon Gold product

The idea is that we manage people’s expectations better. We sell a super business class product but we offer you a first class service. By selling a super business class ticket, we’re selling customers a concept of what to expect, and then when you’re onboard they realise they’re getting more.

That, we believe, is the biggest form of advertising you can have. Customers get better value for money than what they were expecting and I think that’s what makes the passenger feel better about Gulf Air.

Where do you think the premium product in air travel is heading?

I think there will always be a premium product that takes different shapes and sizes. I think the emphasis on the super luxurious suite type product will always be there, but I question the size of this segment. How many people are actually willing to pay for the real estate that is being used? There will always be people willing to pay right at the top though.

But I think the bulk of the premium traffic in the future will be business class

When will in-flight WiFi connectivity become a reality?

Hopefully within the next few years. We have taken a decision to proceed in this direction on some of the airplanes where it is technically possible to do so, but the technology has not yet rolled out and commercially speaking, it is still under trials.

But we expect to be one of the first airlines to be able to offer that on the airplanes that are certified to do so.