Gulf Air cancels A330s in favour of narrowbodies in fleet renegotiation

It has also opted for Boeing for its long haul fleet with a revised requirement for 12-16 Boeing 787 Dreamliners to meet its long-haul needs.

The Bahrain national carrier has been involved in drawn-out negotiations with Airbus and Boeing following the restructuring plan set by CEO Samir Majali which focuses on regional connections.

In a statement today, the airline said it engaged in extensive discussions with both airframe manufactures to renegotiate its order book. “This has become necessary in light of the tough economic conditions faced by the global aviation industry recently including high-fuel prices and a slump in air traffic as well as the regional developments over the last fifteen months resulting in the forced suspension of a number of destinations impacting revenue, “ the airline said.

Majali, said, “As long-standing trade partners, Airbus and Boeing have understood our challenges and I am delighted that we have arrived at mutually agreeable solutions in-line with the Government directive to put the airline firmly on a path towards sustainability. The revised orders reduce our long-term financial liability of approximately USD$ 5 billion by over 50% and the remaining liability more effectively meets Gulf Air’s future fleet replacement and / or growth requirement.”

Commenting on the announcement, industry analyst Saj Ahmad said: "Gulf Air is curtailing is capital expenditure wherever possible to survive and also wants to demonstrate that the recently approved cash injection is made good use of.

“The switch to A320neo's will of course aid in lowering fuel costs, but Airbus will have a tough job reassigning those A330s that were earmarked for Gulf Air - especially in the wake of China's refusal to take A330s because of the ETS scheme Europe has in place.

“The 787 has largely remained in tact - in part because deliveries are farther out and also because it is more fuel efficient than the ageing A330 design. Importantly, Gulf Air needs to stem losses. Its likely some jobs may go, but the carrier has a long road ahead before it can be considered a proper rival to the likes of the other big three Arab airlines."

Marty Bentrott, Boeing Commercial Airplanes' vice president of sales for the Middle East, Russia and Central Asia said: “We appreciate the fact that as a commercial airline Gulf Air has to respond to the changing global aviation environment. The revised fleet requirement from Gulf Air reflects this and we are glad to have cooperated with Gulf Air to arrive at an amicable solution. Gulf Air remains a valued customer of the Boeing 787 Dreamliner and we look forward to continuing our strong partnership.”