Bahrain air passenger traffic up 12%

Bahrain reported a 12 percent year-on-year rise in passenger traffic at its main airport during the first five months of 2012, it was reported on Tuesday.

Passengers at Bahrain International Airport rose to 3.35m between January and May, compared with 2.99m a year ago, the Alwasat daily newspaper reported, citing the Bahrain’s Civil Aviation Affairs.

The figure is welcome news for the Bahrain aviation sector, which has been severely impacted by government unrest in the island Gulf state.

The country’s struggling national carrier Gulf Air, hit by falling passenger numbers, announced earlier this year it will shrink operations and seek cash from government funds.

"The downsizing will affect the network and affect the fleet," CEO Samer Majali said. He said staff numbers would not be affected.

The airline could tap Bahrain's sovereign wealth fund Mumtalakat, which has a stake in the carrier.

"This is currently being debated," Majali said when asked if the airline expects to get any assistance from the government or Mumtalakat.

Richard Nuttall, the CEO of fellow carrier Bahrain Air, told Arabian Business in March the airline would be open to a merger with state-backed Gulf Air in a bid to enhance the carriers’ network of flights and overall operational efficiency.

The head of the privately-held carrier said there was an urgent need to solve the problems that both loss-making airlines face, and that a deal between the two carriers had a lot of support in the country.