MANAMA: Yemen’s national airline has agreed to buy several aircraft in a multi-million deal with aviation giant Airbus.
The $700 million agreement, which will see Yemenia buying 10 A320 planes, was struck at Bahrain’s first ever air show. Bahrain’s King Hamad bin Isa Al-Khalifa opened the event.
Yemenia’s chairman and Chief Executive Captain Abdulkhalek Al-Kadi and Airbus’ vice-president for the Middle East Fouad Attar signed the deal at the Bahrain International Air Show on Thursday.
Bahrain’s elated Undersecretary for Civil Aviation Capt. Abdulrahman Mohamed Al-Gaoud described the deal as a great beginning for Bahrain’s global aviation show, which is expected to feature key business-to-business projects. He hinted at the likelihood of similar deals happening over the course of the event.
“There are more surprises in store. Let us wait and see for the next two days,” he said.
Al-Kadi said the signing of the final contract in Bahrain demonstrated the sense of brotherhood and cooperation shared by both nations.
The deal follows a memorandum of understanding signed between the two countries at the recent Dubai air show.
Airbus will deliver four aircraft to Yemenia in 2011, two the next year and another four in 2013. The planes will replace Yemenia’s existing fleet as a part of the carrier’s strategic initiative to expand its global reach.
“We have new plans to add more destinations in the Gulf region, Middle East and Africa, Far East, India and southern Europe this year. The deal will also help stimulate economic growth in Yemen,” Al-Kadi said.
To achieve that end, a major fleet modernization was a must, he said.
“Very soon, we will have a total new generation fleet, which will strengthen our competitiveness.”
He added that the new A320s would be maintained and operated in the same way as Yemenia’s existing aircraft and would continue until the airline adds A350s in the future. “The increased efficiency of this integrated fleet will help us achieve our growth targets. The A320 will also enable us to redefine our services by offering our passengers the best cabin comfort in its class.”
Gulf Air, the national carrier of Bahrain, signed on Thursday a preliminary agreement with Brazil-based Embraer to lease two Embraer 170 advanced range (AR) jets.
The preliminary agreement is based on a three-year dry lease of the two aircraft with provision to extend for a further five years.
Gulf Air Chief Executive Samer Majali admitted that the decision to replace wide-body planes with regional jets might impact airline’s ongoing negotiations with Airbus and Boeing.
Bahrain’s flagship airline, Bahrain Air, has announced the creation of a brand new regional carrier at its leading air show. Bahrain Air said on Friday it is to help establish Blue Nile Airways.
The new airline is a joint venture with leading companies from Bahrain, Sudan and Egypt.
Blue Nile will commence its first scheduled flight from Sudanese capital Khartoum on March 28, serving destinations in Saudi Arabia, Egypt and East Africa.
The new company will have a paid up capital of $20 million, Bahrain Air’s Managing Director Ibrahim Al-Hamer announced on Friday on the sidelines of the ongoing show.
The joint venture company comprises of Bahrain Air, Nile Aviation Services Company as well as a Sudanese conglomeration comprising of Sudan-based Progress Company Limited, Bahrain’s HMA Holding and Egypt’s Afaq Company Limited.
“Bahrain Air will assist the new company with all the technical and operational know-how for its speedy launch,” Al-Hamer said.
Abdullah Elfadil, chief executive officer of Blue Nile Aviation Services Company, welcomed the deal with Bahrain Air and said the partnership would take the carrier to great heights. He also thanked Bahrain-based Gulf Aviation Technology for helping provide technical support for the new airline.
