Carrier Places 16 Firm Orders, Eight Purchase Rights

Aero-News has learned that over the weekend, Boeing and Bahrain's national carrier Gulf Air finalized negotiations for up to 24 Boeing 787 Dreamliners in a deal that could be worth approximately $3.9 billion at list prices if all options are exercised. The agreement is for 16 787s on direct order, with purchase rights for eight additional planes.

"Gulf Air has been a premier carrier in the Middle East for more than half a century," said Marty Bentrott, Boeing Commercial Airplanes vice president of Sales for The Middle East and Africa. "We look forward to helping Gulf Air revitalize its fleet through the superior economics and passenger comfort that the Dreamliner will bring."

Throughout 2007, Gulf Air and Boeing conducted an extensive airplane acquisition analysis that explored the strengths of the 787 -- which, according to Boeing, include the best fuel burn in its class, lower maintenance costs due to the aircraft's composite structure, and interior features and comfort that add to the Dreamliner's marketability.

The 787 is the fastest-selling new airplane program in history with a total of 857 orders from 56 customers since launch in 2004. Not all is rosy for the Dreamliner project, however; as ANN reported, Boeing announced last week a new three-month delay in the Dreamliner's first flight -- meaning no planes will be delivered in 2008.

That delay is less likely to impact Gulf Air, however, as its aircraft are slated for delivery years from now.

"As the cornerstone of our fleet, the 787 will help re-establish Gulf Air's predominance within The Gulf," said Gulf Air Chief Executive Officer Bjorn Naf. "Our goal is to increase the airline's efficiency and profitability, and we have selected the 787 to be the core of our fleet for the next generation to meet both our passengers' and our stakeholders' expectations."

"We are committed to Gulf Air's success," added Mahmood Kooheji, Gulf Air's Board Chairman. "In choosing the 787, we are confident that we've made the very best choice for the long-term success of the airline."

FMI: www.boeing.com, www.gulfair.com