Gulf Air walks away from Jet lease deal

Bahrain's state-owned carrier Gulf Air said it has walked away from a deal to lease four Boeing 777 aircraft from India's Jet Airways, citing economic conditions.

Loss-making Gulf Air said on Thursday it had an option to lease the aircraft after an existing six-month contract expires, but has decided not to go ahead. "After careful analysis of various commercial and other business considerations, Gulf Air has decided not to pursue the dry-lease option for the foreseeable future," the company said.

Dry leases are contracts where airlines lease planes without staff.

Gulf Air said in February it had agreed to lease four Boeing 777s as part of its efforts to replace its fleet.

The existing six-month contract is a wet lease agreement, which typically includes staff. A Gulf Air spokeswoman said the airline had received the fourth plane under that deal on Thursday.

In March, Gulf Air director of corporate development Siah Joo Tan said the airline was poised to break even next year despite the financial downturn. (Reuters)

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