Manama: Gulf Air has ordered 19 new Airbus aircraft and upgraded a 16-aircraft Boeing order on Thursday, pushing ahead with plans to renew its fleet.
The loss-making state carrier placed an order for 17 Airbus A321neo and two Airbus A320neo aircraft, building on an existing order of 10 A320neos planes, worth a combined $3.4 billion.
It also converted a previous 16-Dreamliner aircraft order from U.S. manufacturer Boeing to wide-body 787-9s from 787-8s. Gulf Air said it anticipates delivery to start from the second quarter of 2018.
Gulf Air's orders are likely to be the only significant commercial announcement at the Bahrain Airshow, which has been overshadowed by defense needs amid escalating regional tensions.
Financing options
To purchase the aircraft, Gulf Air plans an equal split between financing and lease-buy-back structures.
"We're looking at all financing options in the market to keep a healthy balance sheet," Gulf Air Chief Financial Officer Sahar Ataei said at a media briefing at an industry event in Bahrain.
"We are also seeking international financial advisers' assistance in this area to look at our financing strategy." The company is also looking to conclude contract details with Canadian manufacturer Bombardier for its 110-seat CS100 aircraft, Chief Executive Maher al-Musallam said at a media briefing.
Gulf Air in June 2011 placed an order for 10 CS100 with options for another six.
The company has gone through a lengthy restructuring. It reported an annual loss of 62.7 million dinars ($166.3 million) for 2014 from a loss of 93.3 million dinars in 2013.
"2015 was a good year - we minimised our losses but the financial year is not out yet," Al-Musallam said.
