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Dubai: Bahrain's national carrier Gulf Air said it will buy 35 aircraft from European planemaker Airbus in a deal worth about $5 billion at catalogue prices as the company seeks to bolster its position in the competitive regional aviation sector.
Gulf Air ordered 15 A320 single-aisle aircraft and 20 wide-body A330-300s at the Berlin Air Show yesterday to operate on regional and long-haul routes.
This is the second major order this year by the airline after a $6 billion deal with US aircraft manufacturer Boeing for 24 B787 Dreamliners.
The Bahrain-based carrier, which was formerly owned by four Gulf states, is up against much bigger rivals Emirates, Etihad Airways and Qatar Airways in its effort to recapture its lost share of the regional passenger market.
The airline expects to grow its fleet to 45 planes in five years from 25 at present.
It already operates 10 A320s, six A330-200s and nine A340-300s.
"Gulf Air is taking huge strides forward in its strategy to re-fleet and expand its network and this contract is a significant milestone in this direction," said Gulf Air chief executive officer Bjorn Naf, who signed the deal with Airbus president and CEO Tom Enders at the Berlin Air Show.
Fleet expansion
"Expanding our fleet with Airbus will ensure a smooth introduction of the new aircraft into our existing fleet with the best operating economics in their class," he said in a statement.
The A320 will serve the airline's regional destinations and the A330 will fly on European and East Asian routes.
Gulf Air launched services in 1950 and operates to 40 destinations.
Qatar left the joint ownership in 2002 and Abu Dhabi quit in 2005 to focus on their own airlines and develop themselves as aviation hubs.
Oman pulled out in May last year to leave Bahrain in full control of the carrier.
An aviation analyst said Gulf Air is keen to remain a significant player in the region despite the UAE and Qatar-based carriers enjoying a huge advantage in terms of size and cash.
"They are trying to keep their place in the market. The Airbus order shows they still wish to participate in the long-haul market," said John Strickland, a London-based aviation analyst.
Even with the two big orders this year, Gulf Air will struggle to catch up with the other major regional carriers that have built big fleets and wide route networks.
"When Emirates at one point was leading, Gulf Air was still having problems whether it was going to keep its partners or not. In the meantime, Etihad and Qatar have emerged [as strong players]," Strickland said.
Gulf Air did not say when it would receive the new Airbus planes. The first of Boeing's 787s are scheduled to arrive in Bahrain in 2016.
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