Monday, November 12, 2012
Gulf Air Restructures Boeing, Airbus Orders
Bahrain national carrier Gulf Air signed amendment agreements with Boeing and Airbus to restructure its original aircraft orders with the two manufacturers, citing high fuel prices and a slump in air traffic that impacted its revenue and ability to meet the original purchase agreements.
(Gulf Air A320)
The revised agreement with Boeing will reduce the airline’s order for 787s to 12-16 aircraft depending upon Gulf Air’s “strategic requirements.” Gulf Air said the Dreamliners are scheduled for delivery towards the end of the decade.
In 2008, Gulf Air signed an agreement to purchase 16 Dreamliners with purchase rights for an additional eight Dreamliners for $3.9 billion.
The original Airbus order has been revised to permit the conversion of the existing wide-body obligation into eight A320ceo aircraft, to be delivered by the end of 2012.
Gulf Air CEO Samer Majali said the revised orders will reduce the carrier’s long-term financial liability of $5 billion by about 50 percent.
“As long-standing trade partners, Airbus and Boeing have understood our challenges and I am delighted that we have arrived at mutually agreeable solutions in-line with the Government directive to put the airline firmly on a path towards sustainability,” said Majali.