Boeing, which had hoped to secure orders from the government-owned airline for its A350 equivalent, the 787, also received orders from QA worth $4,600 million. The airline will see delivery of the first of 20 Boeing 777s in 2007.

The carrier also signed on the same day two memoranda of understandings with Germany's Lufthansa Technik (LT)worth a total of $100 million. Under the agreements, LT will take over the engine maintenance and overhaul of the airline's A320 fleet for the next 10 years and install live satellite television in 15 A330 aircraft. QA, which began operations in 1994, plans to take its fleet to 120 aircraft from 40 by 2012. The carrier is still waiting on deliveries of 32 aircraft ordered from Airbus, including four A380 super-jumbos.

Kuwait's Aviation Lease & Finance Company (Alafco)also signed a $1,944 million contract with Airbus for the purchase of 12 A350 aircraft with an option for a further six. Deliveries will start in 2012, after which the aircraft will be offered to international airlines on a lease basis, using Islamically structured financing packages. GE will supply the engines for the aircraft.

Alafco, which is owned by Kuwait Finance Houseand Kuwait Airways, is planning to grow its current fleet of 11 Boeing and Airbus aircraft to 50 by 2008. It recently opted to increase its capital from KD 33 million ($114 million) to KD 50 million ($171 million).

Bahrain-based Gulf Air announced on 15 June that it planned to expand its fleet after announcing profits in April for the first time since 1997. Gulf Air, which is jointly owned by Bahrain, Oman and Abu Dhabi, has invited aircraft manufacturers to bid for new orders. Speaking to MEED in May, James Hogan, the carrier's chief executive officer, confirmed that talks with Airbus and Boeing were in progress and that Gulf Air was looking to work with just one supplier. The airline has a fleet of 34 aircraft and flies to 30 countries (MEED 6:5:05).

Abu Dhabi-based Etihad Airwaysalso announced that it had signed an agreement with Connexion by Boeingto fit out its 25-strong fleet with high-speed in-flight internet and live television, while UAE-based Gulf Aircraft Maintenance Company (Gamco) signed a letter of intent with US-based AAR Internationalto develop a component repair facility to support F16 Block 60 aircraft in Abu Dhabi.

State-owned Air Cairois finalising the acquisition of six A318 passenger jets from Airbus. The EgyptAirsubsidiary will use the new planes on economy flights to Europe and the Middle East as well as on its domestic routes. Deliveries of the 120-seat aircraft will begin in the third quarter of 2006. The order comes as EgyptAir prepares to sign an $850 million deal with Boeingfor 12 new 737/800 aircraft (MEED 10:6:05).