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Bahrain Air Plans to Sign $160 Million Financing for 4 Aircraft

ABU DHABI — Bahrain Air, a budget airline based in Manama, will sign a $160 million financing agreement with European financial institutions next month to purchase four A320s aircraft.

“We are considering at least three financing offers from European banks at the moment. With the settling down of global financial crisis, we will sign an agreement next month”, said Ibrahim A. Alhamer managing director of Bahrain Air, in an interview with Khaleej Times.

The airline signed a deal with Airbus for purchasing six A320 aircraft including an option for two aircraft.

The delivery of an A320 aircraft will be made next month.

Bahrain Air, the newest budget carrier in Gulf, launched its operations last year with two aircraft. Since then it has expanded its operations to ten destinations in the Levant, Gulf and India.

With successful operation on Dubai route, the carrier is contemplating expanding its service in the UAE, with the opening of Abu Dhabi sector, by March next year.

“Today we have appointed Space Travel, a subsidiary of Emke Group as General Sales Agent (GSA) for Abu Dhabi and Al Ain, and in the next stage we will apply for traffic rights”, said Ibrahim A. Alhamer.

The new routes to be launched before April next year included Khartoum in Sudan, Assyout and Luxor in Egypt.

Starting with a modest load factor of 20 per cent, the airline has achieved a remarkable growth reaching 60 per cent.

On the completion of first year of operations, Bahrain Air targets to fly 500,000 passengers, and achieve economy of scale, once deliveries of four new aircraft are made next year, he said.

The airline already has a market share of 15 per cent, in the budget airline business in Gulf.

The company plans to raise capital by offering an initial Public Offering (IPO) in three years time.