Category Archives: GMG Airlines

GMG Airlines suspends operations, promises to reorganize with new aircraft

GMG Airlines (Dhaka) suspended all operations effective today (March 30), promising to return with newer, more fuel-efficient aircraft. In the future it will focus on domestic and regional routes.

The airline issued the following statement:

“Thank you very much for your interest in GMG Airlines. We have temporarily suspended all flight operations with effect from 30 March 2012, as we work to transform our business and replace our current fleet with new aircraft. We will resume operations later in 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 on the DHC-8-300 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.”

Copyright Photo: Karl Cornil.

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