Gulf Air secures new loan

22 January 2008
Gulf Air has agreed a $81.5m credit facility with Gulf International Bank to fund its new expansion strategy.

Bahrain’s national carrier is restructuring its operations, which continue to lose some $600,000 a day. It has regained the confidence of its banks after slashing costs last year, and recently secured financing for up to $6bn worth of new aircraft over the next eight years (MEED 14:1:08).

The latest loan agreement is made up of two tranches, of $36m and $45.5m.

“We are building the basics and we need strong financial partners supporting us in our long term growth plans, which includes completely re-fleeting the airline,” says Bjorn Naf, the company’s acting president and chief executive.

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