Gulf Air places $5bn Airbus order

MAJOR CONTRACT: Gulf Air said it had ordered 15 Airbus A320s and 20 A330s to serve regional, European and Far Eastern routes.

Bahrain's Gulf Air has ordered 35 Airbus medium and long-haul aircraft in a deal worth $5 billion it was announced on Wednesday.

The order for 15 Airbus A320s and 20 Airbus A330s is worth "$5 billion at catalogue prices," Airbus commercial director John Leahy said at the Berlin Air Show.

Leahy acknowledged that major contracts often included negotiated discounts and the final value of aerospace deals is often a closely guarded secret.

The outcome can vary widely depending on the economic situation, the number of aircraft sold and whether or not the client has bought planes from the same manufacturer in the past.

Wednesday's deal was signed by Gulf Air boss Bjoern Naef, a Swiss national, and Airbus head Thomas Enders, a German.

"The A320 will serve Gulf Air’s regional destinations while the A330 will operate on the airline's European route and enhance its Far Eastern services," Naef said.

His company planned to focus on Middle Eastern service, Naef added, much as the airline Swiss has in Europe.

"There will be enough cake for everybody. Of course, there's competition but it's the same in Europe, for European airlines. We want to be a niche product," he said.

Gulf air traffic has grown by leaps and bounds and seen the emergence of several carriers that need to expand their fleets like Emireates in Dubai or its neighbour Qatar Airways, both of which are good Airbus clients.

The airlines have expanded rapidly as governments in the region work to diversify their economies from oil and gas into air transport and tourism.

Naef said it remained open whether Gulf Air would buy the future Airbus A350 jet now under development.

The company's order on Wednesday followed one in January for 16 Boeing 787 passenger jets worth around six billion dollars, along with an option for eight others.

The 787 and A350 are rivals designed to fly longer routes using less fuel.

Gulf Air plans to increase its fleet to 45 planes by 2013 from 25 at present.

The carrier became the sole property of Bahrain last May after Oman pulled out.

Former partners Abu Dhabi and Qatar withdrew from the airline's ownership in 2005 and 2002, respectively, to focus on their own carriers.

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