UNITED WORLD: How did the idea about the creation of Bahrain Air come about?

MR. IBRAHIM AL HAMER: Bahrain has always maintained an open market economy. However, in the aviation sector the market was not really open until we came on board. The fact that there has been a lot of growth in the aviation industry, particularly in the Gulf where the market grew around 8% last year, led us to believe that other low cost carriers in the region were taking a big chunk of the Bahraini market. We realized that we could take advantage of this positive trend, especially in times when both, the economy and the aviation are growing at an unprecedented pace.

The majority of the Bahraini population requires a low-cost concept, which is demonstrated by the fact that at least 15,000 people use existing low-cost carriers other than Bahrain Air. We decided to take advantage of such a large number of passengers demanding low cost carriers. As a result, we came up with a new carrier positioned between a low-cost carrier and a full-fledged airline. That is why we call ourselves the first premium low-fare carrier. By premium, we mean that we have 2 different classes of passengers, 2-class services, and the low-fare gives us reason to position ourselves between the absolute low-cost and a full-fledged airline.

These days, the world has become a small village. The Gulf market as is a common market nowadays, just like in European Union and some other economies. There is no difference between any of the Gulf state's citizen. We do not want to make this company a simple domestic affair. We want it to reach people at a regional level. For that purpose, as Bahrainis, we own 68% and the Saudis own 32%. Our colleagues and investors in Saudi Arabia are quite influential in the aviation business.

UNITED WORLD: How do you see the future of low-cost airlines? Do you think it will continue gaining market share from the traditional airlines in the Gulf?

MR. IBRAHIM AL HAMER: Yes, I think so. If you look at both, individual or corporate clients, they are all looking at reducing costs without exception. The margins for all companies and individuals are decreasing because of excessive costs. As a result, we think that they will all look for safe and reliable air services at the least possible prices. That is why we feel that there is a lot of potential for low-fare carriers.

UNITED WORLD: Bahrain Air joins Gulf Air and other international carriers in operating from Bahrain International Airport. How will Bahrain Air's arrival further enhance Bahrain's standing as an air transport hub?

MR. IBRAHIM AL HAMER: Firstly, one of the goals of Bahrain Air is to really strengthen the role of Bahrain International Airport as a hub, sitting right in the middle of the Gulf. We believe that when we bring in more traffic from destinations in the East or West, everybody will benefit from that, and other carriers will benefit without exception.

Secondly, the country will be exposed. We carry the country's name in our logo and on our planes. It is quite unique and we feel very proud of carrying the name of Bahrain. That will give an additional exposure to the country in different markets at all levels.

UNITED WORLD: What are the main challenges in making an airline profitable?

MR. IBRAHIM AL HAMER: The secret of making any business or venture successful is to contain cost. Costs are the determining factor in making or breaking an airline, because most of the fixed costs are known to us, but another 50% of costs is variable, and we have very little control over it. If you do not control costs, especially these days when the fuel prices are going up, you can find yourself in trouble. The only way to be profitable is to control the fixed costs and to maintain market growth by gaining as much market share as possible.

UNITED WORLD: Apart from the market gap that Bahrain Air is filling, what is its strategy to gain market share from Gulf Air and the other low-cost carriers in the region?

MR. IBRAHIM AL HAMER: To be honest, we do not see it as taking market share from the others. The market that we will gain is a new market, as we target people with lower income, those who can only afford to travel once or twice a year. If we make traveling more affordable, they will start to fly more. In fact, we want to make it to the point where it will be more cost-effective for a person to travel to meet people for business or family purposes, than making multiple international calls.

UNITED WORLD: Bahrain Air has come up with an extensive network of destinations including Iran, Kochi, Lebanon, Dubai, etc. What was the rationale behind this strategy?

MR. IBRAHIM AL HAMER: We need to gain as much market share as possible. We need to position ourselves in the market so that the market and the customers can take us seriously. Starting in a shy way would not be a very good way to enter the market. We think that it is better to start opening destinations aggressively, then review the set-up and go through a period of stabilization, and then continue opening more destinations. So it should be a cycle of opening and stabilization.

UNITED WORLD: How did you choose the destinations that you have?

MR. IBRAHIM AL HAMER: So far, we have opened 7 destinations: Dubai, Doha, Beirut, Damascus, Amman, and Mashad in Iran , Alexandria, We will stabilize these destinations, gain market share, and then go on to the second wave of opening another destinations. Those are Kochi south of India, Aleppo in Damscus Kuwait, Dakka in Bangladesh,. After that, we are going to the third wave which will be 2 months down the road.

UNITED WORLD: What has been the process for getting the licenses to operate in these airports?

MR. IBRAHIM AL HAMER: Airports have a standard red tape requiring the documentation, legal status, etc. You have to have everything delivered on time and have all the necessary approvals. Otherwise, you will have problems starting up.

UNITED WORLD: What is the business model in terms of the aircrafts?

MR. IBRAHIM AL HAMER: Our aircrafts, Airbus A320, are second-hand but in excellent condition. We have leased them from a very famous Los Angeles-based company, International Lease Finance Corporation (ILFC). We have a combination of the 2 classes; we have 12 seats in business class, or what we call Premium Class, and we have 150 seats in the economy class.

UNITED WORLD: In the course of expansion, will you reach a stage when you will have flights that are not from Bahrain?

MR. IBRAHIM AL HAMER: Yes, in fact, we are considering quite seriously flying out of Dubai to 3 destinations. This will hopefully be in place by the beginning of the summer schedule, which is from June 1st, 2008, subject to the approval of the Government of Dubai.

UNITED WORLD: What has been the success in terms of passengers? Are Bahrainis aware of the new offer?

MR. IBRAHIM AL HAMER: Yes, they are. We have been quite aggressive in our campaign for our new offerings. It is a continuous effort but it is picking up slowly. We have some very promising bookings. If you take the period from now until the end of March, it is looking very good.

We use print advertisements in broadsheets, billboards, lamp posts, and of course, word-of-mouth is very important. We have placed a number of promotional materials in the airports. When you are only starting, you have a lot of things to do. There are also a number of constraints and difficulties, but the good thing is that we have now reached the stage where we can build on what we have started.

UNITED WORLD: Do you have a role model company in the region?

MR. IBRAHIM AL HAMER: My background is in aviation, so I know who is in the market and the kind of models that they are adopting. We take the best of each and try to tailor it to our needs.

UNITED WORLD: What are your methods of raising capital and getting people on board?

MR. IBRAHIM AL HAMER: Raising capital these days is not a problem at all. Our capital is BHD 8 million (US$21.6 million), and we have an authorized capital of BHD 10 million. We still have BHD 2 million more to be paid by the investors and they are willing to pay it at anytime.

UNITED WORLD: What are your plans for future expansion?

MR. IBRAHIM AL HAMER: Capital would be good in the next few years so our main target is to have the company enter an IPO arrangement by the end of the 3rd year. According to the law in Bahrain, we need to have 3 years of successful operations to take the company to an IPO. That is our plan.

UNITED WORLD: What kind of support did Bahrain Air get from the Bahraini authorities?

MR. IBRAHIM AL HAMER: The support was excellent in all levels! We could not ask for more, really. Apart from the legalities and some technical aspects, they have been guiding us and giving us good advice.

UNITED WORLD: What strategies have you put in place to encourage customer loyalty?

MR. IBRAHIM AL HAMER: We have a customer service department in charge of discussing the needs of our customers. Also, our website will have a feedback page. The idea is to keep in touch with the customers. Whether it is a complaint or a compliment, we hope to hear from them, and we will react accordingly to constantly improve our services.

UNITED WORLD: In terms of human resources, how do you go about creating a good team and good crews?

MR. IBRAHIM AL HAMER: Bahrain Air is very fortunate to have the best that this island has in terms of manpower. More than 80% of our employees are local and highly experienced in aviation. Combined, we have an excess of 25 years of experience. Our employees are very loyal. They would like to see this project become successful on a personal level, so they put in the extra hours and it is reflected in the outcome. We all have a common objective, and that is to make Bahrain Air successful.

We have taken a bit of everything, good and bad, from all our collective experiences. Naturally, we have to avoid the bad side and capitalize on the positive experiences. That is exactly what we are doing.

So far, we have received a lot of positive feedback from our clients saying that our crafts are nice and clean, and that the service provided is good. Mind you, while the project has been there since April 2007, the actual work for getting the airline started off only in October 2007. So we only had 4 months of preparation before launching the airline.

UNITED WORLD: What were the major challenges you have faced so far?

MR. IBRAHIM AL HAMER: The major challenge was to really meet our customer's expectations. The people in Bahrain and the Gulf only had a few choices when it comes to traveling. Now, they have one more option. As such, their expectations are quite high. Our challenge is to meet those expectations and it has not been easy. So far, we have had a very good on-time performance, above 98%. We are very fortunate to start with such a high performance.

In this first week, our employees have spent a lot of time at work; they stay till the late hours and are genuinely excited. They just want to make sure that this project is a success. People work overtime, and they are not on duty at that time. They are so devoted and dedicated to their job, that they want to get it done. The excitement is here which is what is adding a lot of flavor to it.

UNITED WORLD: How do you view the modernization of the Bahrain International Airport?

MR. IBRAHIM AL HAMER: As far as I know, Bahrain Airport is handling more than 7 million passengers annually. They have to build more boarding gates, with gateways to the planes. As a low-cost carrier, we need a connecting time shorter than 45 minutes. To meet our objective, we need to have our aircraft come to the main terminal connected to the bridge and immediately disembark and embark people for the outgoing flight. In fact, 45 minutes is even too much because to make the airline profitable, we have to have the airline up in the sky, flying. The shorter the time they spend on the ground, the better off we will be. For that purpose, we need to have really good facilities to be able to do that.

UNITED WORLD: Where do you see Bahrain Air 3 years from now?

MR. IBRAHIM AL HAMER: To survive in the airline business, you have to grow. Without growing in the sea of business, the bigger fish will eat you. The market is continuously expanding and we have an increasing number of people traveling. The two keys to a successful airline business are cost and growth. We are very serious about our business. We will be growing, spreading the wings of Bahrain Air to as many destinations as possible. We will meet our targets.

UNITED WORLD: On a more personal note, as a pilot, was it a dream come true to be operating your own airline?

MR. IBRAHIM AL HAMER: Yes, it was. I flew with a lot of other airlines and it is really nice to end my career with an airline company of my own. It gives me a great sense of personal achievement and national pride at the same time.

UNITED WORLD: What message would you like to convey to the readers of USA Today?

MR. IBRAHIM AL HAMER: Visit our website, book a flight with us and experience Bahrain Air for yourself!

UNITED WORLD: Mr. Al Hamer, thank you very much for your comments.