MANAMA, 14 June 2004 — A group of Bahraini and Saudi investors will establish an $80-million private airline in Bahrain next year, a source close to the shareholders said yesterday. The airline, which will only fly short-haul, has been approved in principle by the Bahraini authorities on the condition that it does not adversely effect Gulf Air, the source said. For this reason, its routes will only be regional, the source said, adding that the new airline will not be launched before April next year. Gulf Air is jointly owned by the governments of Bahrain, Abu Dhabi and Oman. Founded in 1950 and today covering 45 cities in 33 countries, Gulf Air last year launched a three-year strategic recovery program.