Gulf Air re-orders fleet acquisitions

With the Bahrain Government clearing the way for a major bail out for Gulf Air earlier this year, the carrier has made another major strategic move, with a long-overdue adjustment to its fleet orders. After extensive discussions with both Airbus and Boeing, Gulf Air is shelving the majority of its orders for widebody aircraft, in favour of larger numbers of current and future generation narrowbodies.

The widebody orders were a legacy of Gulf Air's ambition to re-establish itself as a major player in the Middle East long-haul market. As part of this goal, it ordered 20 A330s and 24 Boeing 787s in a series of agreements made over 2008 and 2009. The objective was to develop the carrier into an entity that could compete in a market that was rapidly being dominated by the expansion of the 'Big Three' in the Gulf: Etihad Airways, Qatar Airways and Emirates.

However, things have not turned out as envisioned. After a succession of turn around programmes and three different CEOs in less than five years, a combination of continued heavy losses, the high cost of oil and the broader Middle East socio-political environment has forced a major re-think at the airline. In the face of the new commercial and competitive reality in Gulf aviation, as well as the carrier's dire financial status, Gulf Air has been forced to turn away from its bid to take a place among the major long-haul carriers of the region.