Back on topic. No real 'new' news just interesting reading material. First A321 delivery in March 2012?
Gulf Air cancels eight 787s, continues fleet negotiations
21-11-2011, Bahrain
Gulf Air (GF) is in discussions with Airbus and Boeing to change its widebody aircraft order to narrowbodies and reschedule deliveries.
CEO Samer Majali confirmed the carrier reduced its 787 order by eight aircraft earlier this year, which “lessened the company’s liabilities enormously. We expect to achieve further deferrals and changes to the widebody orders,” Majali told ATW during the Arab Air Carriers Organization’s AGM in Abu Dhabi last week.
Majali was appointed CEO in August 2009 to address the carrier’s weak financial condition. His three-year restructuring plan includes finalizing widebody order changes and shifting GF’s network strategy from long-haul routes to a more regionally focused network.
The loss-making carrier embarked on a major fleet acquisition campaign in 2008 and signed contracts for 24 787s, 15 Airbus A320 family aircraft and 20 A330-300s (ATW Daily News, Aug. 25, 2009). Four A330s have been exchanged for 10 A320s/A321s, but negotiations on further changes to the A330 order are taking longer than expected, Majali said. The carrier hopes to have a more concrete announcement at the Bahrain International Airshow next month.
Majali did not go into detail on GF’s plans to order 10 regional jets with either Bombardier or Embraer. “We are looking for regional jets as part of new network strategy,” he said, without confirming or denying reports that the carrier’s shareholder had awarded $328 million regional jet tender to Bombardier. GF added two new Embraer 170s and two E-190s last year.
Majali said the carrier will not reach its financial targets for 2011 because of the impact of political and social unrest in the region, and specifically in Bahrain. He said passenger numbers dropped by 30% in the second quarter because foreigners avoided Bahrain, and operations to Iran and Iraq were suspended by the government.
“We lost two of our three main markets. We were planning to expand with a further four destinations in 2012, but flights to both countries are still frozen,” he said. To compensate for the lost routes, GF launched several new destinations, including Copenhagen, Rome, Geneva and Nairobi. “Load factors are good but these new routes are not as lucrative as the frozen ones,” Majali said.
GF expects to carry about 5 million passengers this year, on par with 2010 but “yield was down significantly,” he said.
For 2012, Majali expects increases in passengers and yield without sharp fuel price hikes.
“We have to be and are optimistic for next year. We will continue realigning Gulf Air with the strategic interest of Bahrain and providing access to the country and the region,” he said.