MANAMA: Gulf Air yesterday pledged to offer a "new dimension" in Gulf travel after the addition of two new aircraft to its fleet.
The national carrier took delivery of the two 67-seater Embraer E-170 AR aircraft on Thursday that will be deployed on routes, including Larnaca, Istanbul, Athens, Erbil, Baghdad and Muscat.
The aircraft made its inaugural flight to Larnaca yesterday following a Press conference at the Gulf Air lounge at Bahrain International Airport.
Speaking at the ceremony, the airline's chief executive officer Samer Majali explained that the addition of the aircraft - with a further two expected to arrive in the summer - would provide Gulf Air with the flexibility to introduce a greater choice of destinations for time-conscious business travellers.
"My aim is for Gulf Air to serve every Arabian capital and regional capital with at least two services everyday," he said.
"This objective can become a reality with the size, reliability, comfort and unbeatable economics of regional jets like the ER-170.
"This brand-new 67-seat airplane is fitted with luxurious interiors furnished with all-leather seats and no middle seating, offering exceptional comfort in a two-class configuration.
"The introduction of these jets reinforces the pioneering spirit of an airline which has always been known for bringing new concepts to Middle-Eastern travellers and reinforces our reputation as the airline with the largest network in the region," he said.
The aircraft's highlight is a state-of-the-art entertainment system which offers up to 3,000 video and audio titles at the touch of a finger.
It is part of a long-running plan to rejuvenate Gulf Air's aging fleet, most recently with the addition of seven Airbus A-320s and retiring older planes such as several Airbus 340s.
Mr Majali told the GDN that Gulf Air had always traditionally looked towards utilising capital leasing (or lease-to-own) when acquiring aircraft.
However, with the recent additions of two Embraer E-170s and seven Airbus A-320s they had chosen to utilise the operating leasing option instead.
"Gulf Air has traditionally paid the pre-delivery payments of around 20 per cent and financed the rest, gaining control of the jet at the end of the leasing period," said Mr Majali.
"However, now we are looking towards utilising operating leases instead, which means that at the end of a lease you are not faced with trying to get rid of the plane.
"For example, we are leasing the two Embraer aircraft on a three-year contract and when that concludes we simply return them; it means that you don't build up your liabilities which can be a problem," he added.
Mr Majali revealed that Gulf Air was planning to mix the use of capital and operating leases to ensure that it continues to increase its fleet without leaving itself open to owning a number of costly and aging aircraft.
"We're facing a battle at the moment with our Airbus 340s because there's no market for them," the chief executive officer admitted.
"We're going to have to sell them at rates which we're not happy with because the bottom's fallen out of the 340 market as it's an older airplane which is expensive to operate and maintain.
"If we look at a 50:50 mix between operating and capital leases it gives us the flexibility of bringing in new aircraft quickly without going through the lengthy full-evaluation process needed for a permanent solution.
"It also gives us more time to carry out a full evaluation of the Embraer C series and the Airbus A-318 and decide by the summer a permanent solution of up to 10 aircraft," Mr Majali added.
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