Gulf Air cuts aircraft orders

13 November 2012

Reduced orders follow airline’s government bailout

Bahrain’s national airline Gulf Air has cut orders for Airbus and Boeing aircraft as part of the carrier’s continued restructuring.

The airline has reduced its order for Boeing wide-body 787 Dreamliners from 24 to between 12 and 16 aircraft. The aircraft are scheduled for delivery towards the end of the decade.

The carrier has also cut its order with Airbus from 20 wide-body aircraft to eight A320 current engine option (ceo) family aircraft, which will be delivered by the end of the year. Up to 16 A320 new engine option (neo) family planes are planned to join the fleet towards the end of decade.

According to Gulf Air’s CEO, Samer Majali, the revised orders will reduce the airline’s long-term financial liability of approximately $5bn by over 50 per cent.

Last month the struggling airline has to be bailed out by the government with a cash injection of BD185m ($494m).

Gulf Air has been struggling with high fuel prices coupled with a slump in air traffic, as well as the forced suspension of destinations due to political unrest in the wider Mena region.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.