Gulf Air Signs $6 Billion Agreement for 24 Boeing Dreamliners

Gulf Air Signs $6 Billion Agreement for 24 Boeing Dreamliners

Jan. 13 (Bloomberg) -- Gulf Air, the national carrier of Bahrain, and Boeing Co. signed a $6 billion agreement for the delivery of 24 Dreamliner aircraft to begin in 2016, airline spokesman Adnan Malik said.

The Dreamliner is Boeing's most successful new airplane program in terms of sales with more than 800 orders valued at more than $120 billion. It ranked second in commercial orders last year behind the 737 narrow-body model.

Gulf Air has 30 planes to service 26 destinations. The company was talking to Boeing, the world's second-largest commercial-plane manufacturer, and Airbus SAS, Chairman Mahmood al Kooheji said during a briefing at the Dubai Air Show in November.

Boeing declined to discuss the status of the talks with Gulf Air, spokesman Jim Proulx said in a telephone interview from Chicago.

``Boeing does not comment on order negotiations with customers until the order is complete,'' he said. ``Until the order is booked, we can't talk about it.''

The agreement was signed on the eve of a visit by U.S. President George W. Bush to the Persian Gulf island, home of the U.S. Navy's 5th Fleet.

Less Fuel, Faster Speeds

Boeing set a third straight annual record with 1,413 commercial jet orders in 2006, driven by demand from Asian and Middle Eastern airlines. The 737 narrow-body model had 846 orders followed by the 787 Dreamliner with 369 orders, according to the Chicago-based company's Web site.

The Dreamliner will use 20 percent less fuel for comparable missions than today's similar mid-sized airplanes, Boeing said on its Web site. It also will travel at speeds equal to the fastest wide-body aircraft and provide airlines with more cargo- revenue capacity.

Boeing fell $1.84, or 2 percent, to $80.52 on Jan. 11 in New York Stock Exchange composite trading. The shares have fallen almost 9 percent in the past year.

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