New Business Plan Implementation
GMG to exit wide-body aircraft operation and re-focus on high growth domestic and regional routes using new generation narrow-body aircraft
Dhaka, March 28, 2012:
GMG Airlines is planning to adopt a new business strategy in light of rising fuel prices and changing international competitive environment through a 360 degree restructure of its strategy, organization, fleet and business model. It will redesign its route network to focus on higher yield, higher growth domestic and regional routes using new generation narrow body aircraft.
Mr. Sanjiv Kapoor, CEO, GMG Airlines, shared a new strategy stating that GMG will be focusing on domestic and regional routes, as the rapid rise of Middle-Eastern airlines in recent years with their access to advantaged sources of funding, advantaged location, large scale, and lower cost base (esp. lower fuel costs and taxes) is making many airlines, both in Asia and in the West, review their strategies and focus on routes where the competitive environment is more level. As a result, GMG will refocus more on South, South-East, and Near-East Asia, with a few select narrow-body routes to the Middle-East.
As part of the new strategy, GMG has exited wide body operations, and will be replacing their Boeing 767s with new generation narrow-bodied aircraft with a renewed emphasis on on-time performance, reliability, and customer experience. The existing MD 80 aircraft will be removed from the fleet and for some routine periodic maintenance Dash8 aircraft will also be removed from operation for the time being. Along with the shift from wide body to narrow body operations, the airline is also in advanced stages of new routes analysis, new fleet planning and negotiations with lessors and aircraft manufacturers, as well as of right sizing of its workforce to improve productivity. Mr. Sanjiv Kapoor said, "As we transit to the new strategy, our operations will be temporarily suspended with effect from March 30, as we await the delivery of new generation aircraft, clear legacy issues, execute the rightsizing and organize ourselves better to take up the future challenge".
During this period of suspension, all ticketed passengers will be given a full refund through the airline’s sales offices and employees will be paid compensation benefits in accordance with the labour law. Also, the airline is taking necessary steps to retain all of its AOC, route rights, frequencies and will be in full co-ordination with regulators, stakeholders and valued passengers.
On behalf of the board, Mr. Sanjiv Kapoor thanks everyone for the tremendous support extended to GMG through the years since it started operations as Bangladesh’s one of the first private airline for more than a decade.