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4 February 2013

Muharraq, Bahrain

Bahrain Air Statement on Recent Press Coverage

Dear Colleagues, Business Partners and Valuable Customers,

In the last few days, Bahrain Air Company BSC(C) has been covered extensively in the local and regional media regarding disputed financial and regulatory matters with the Ministry of Transportation in the Kingdom of Bahrain in reaction to the Arabic press release issued by our Chairman, Sheikh Mohammed bin Abdulla AlKhalifa in the local press on Sunday 3/2/2013.

As one of many ways it is pursuing in order to protect the company’s business interests and legal rights, Bahrain Air would like to stress that it was Bahrain Air’s decision and at its discretion to publicise this dispute by publicly requesting the government to establish a neutral committee to investigate the arbitrary decisions and actions taken against it by the Ministry of Transportation. The most recent of which include the non-approval of charter flights during the Gulf Cup, non approval to fly to previously scheduled destinations and reduction of other destinations such as Dammam, Dhaka, Najaf, Trivandrum, overall reduction of frequencies and the general non-flexibility which is critical to any airline operation.

The shareholders of Bahrain Air are in full support of the airline especially after it managed to reduce its losses in 2012 by 50% compared to 2011 subject to receiving appropriate assurances from the government of Bahrain.

This statement is to inform you that we are in the process of resolving this issue with the government at the highest levels.  We believe that we can play a strong role to the benefit of the Bahrain economy in general and the aviation sector in particular and we look forward to being able to announce our future expansion plans once these issues are resolved.

Bahrain Air yesterday celebrated its 5th year anniversary since the launch of operations and continues looking forward to your usual support in making it Bahrain’s Favorite Airline.
Bahrain Air Company BSC(C)

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