Gulf Air cuts Boeing, Airbus orders

Windsor Genova – Fourth Estate Cooperative Contributor

Manama, Bahrain (4E) – Bahrain’s national airline, Gulf Air, has reduced its order for Boeing and Airbus planes to save some $2.5 billion in cost.

In its announcement on Monday, the airline said it renegotiated and revised its 2008 orders from the two plane manufacturers. From 24 Boeing 787 Dreamliner, it will only order 12 to 16 of the fuel-efficient aircraft. Delivery of the order is by the end of the decade.

Gulf Air also changed its order for six wide body A330 from Airbus to eight single-aisle medium-haul A320 and 16 more fuel-efficient A320 Neo aircraft. Airbus will deliver the A320s by the end of the year.

Gulf Air CEO Samer Majali said the airline signed an amended agreement with Airbus and Boeing after extensive negotiations last year. Majail cited high fuel prices and slumping passenger traffic leading to the suspension of a number of destinations and reduction in revenues as reasons for the change of its orders.

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