Bahrain Air to double authorised capital

15 September 2008
Shareholders at Bahrain Air have agreed to double the carrier’s authorised capital to BD20m ($53m), from BD10m.

The new low-cost carrier, which launched operations in February, took the decision as it seeks financing for recently announced plans to purchase six new aircraft.

The airline operates a fleet of two planes but is to buy six short-haul Airbus A320s.

Sheikh Mohamed Bin Abdulla Al-Khalifa, chairman at Bahrain Air, says the stronger financial structure will also help with the airline’s planned expansion of its international network.

In June, the airline told MEED that the high cost of fuel was forcing it to operate beyond its anticipated budget when it launched, and that the company was exploring fresh sources of revenue (MEED 13:6:08).

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