In terms of the agreement, which was signed at Gulf Air's headquarters in Bahrain, Bank Muscat International "BMI" will provide a short-term loan valued at USD7.5 m to the airline. This bridging finance, initially for a period of one year, maybe rolled over at the bank's discretion.
"While we are in good shape financially and have met our 2004 financial objectives in terms of Project Falcon, 2005 is a completely new proposition," said James Hogan, Gulf Air's President and Chief Executive. "Restructuring is an ongoing process, added to which we have the more pressing challenges in the form of strong regional competition and the high fuel price."
"Recent IATA and industry predictions point to losses in the region of USD5.5 billion if the fuel price remains at present levels", he said, "We are therefore taking all appropriate measures to ensure that we can meet our objectives and sustain the performance we achieved last year within this difficult environment."
Signing on behalf of Bank Muscat International (BMI), its Chief Executive Officer, Musallam Al-Shukairi said: "We are delighted to have concluded this agreement. Like Gulf Air, which plays a vital role in the economic infrastructure of the Middle East, we, at BMI, are committed to the economic stability and growth of the region and look forward to other opportunities for collaboration."
"BMI's strategy is focused on expanding in MENA region in the coming years and is committed to partnering the region in realizing its potential," he added, "BMI plans to strengthen its regional presence in the near future by expanding its network. In addition to Corporate Banking, our key strategic business units are Retail Banking, Private Banking, Treasury, Islamic Banking Services and Global Trade Services. This relationship with Gulf Air illustrates our mutually synergistic focus on the region."
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Gulf Air and Bank Muscat International (BMI) sign credit agreement
- Bahrain: Wednesday, April 20 - 2005 at 13:15
- PRESS RELEASE
Gulf Air and Bank Muscat International 'BMI' have signed an agreement covering the provision of credit facilities by BMI to the airline.
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About Bank Muscat International (BMI)BMI, set up in January this year, is an independent Banking entity focused on becoming a truly MENA regional bank. BMI has been set up in association with some of the strongest and most respected financial institutions from across the GCC region including Bank Muscat SAOG (Oman), Royal Court Affairs (Oman), Overseas Investment S.P.C (Bahrain)*, Istithmar (UAE) and Global Investment House (Kuwait).
*Overseas Investment S.P.C is a 100% wholly owned subsidiary of Premier Group, Bahrain
About Gulf Air
Gulf Air was founded in 1950. Today, it is owned by the Kingdom of Bahrain, Oman and the Emirate of Abu Dhabi and is the only truly pan Gulf carrier in the region. The airline's network stretches from Europe to Asia and covers 44 cities in 30 countries. The fleet is one of the most modern in the Middle East and comprises 34 aircraft.
The airline is in the last year of a three-year strategic recovery programme, headed by President and Chief Executive, James Hogan. The airline, which is making rapid strides towards regaining profitability in 2005, aims to further evolve by taking its renowned cultural strengths, which have been gained over more than half a century, into a global environment.
The dramatic turnaround in Gulf Air's fortunes has won international recognition. In January 2004, The Centre for Asia Pacific Aviation (CAPA) presented the airline with the prestigious Airline Turnaround of the Year Award for 2003. Gulf Air was also the recipient of the 2003 Platinum Award for the Best Airline in the Middle East and North Africa, recognising the airline's commitment to service excellence.
Winner - Middle East and North African Platinum Best Airline Travel Award 2004
Winner - Skytrax Most Improved Airline Award 2004
Winner - Skytrax Best First Class Onboard Food Category 2004
Winner - Skytrax Best Business Class Check-in Category 2004
Official Airline and Sponsor of the Gulf Air Bahrain Grand Prix 2005
Public Relations Department - 20th April 2005
Issued by Gulf Air - Official Airline and Sponsor of the Gulf Air Bahrain Grand Prix., For further information please contact
Anne Tullis, Manager Corporate Communications, on Tel: (+973) 17338098, Fax: (+973) 17338207
Posted by Anne-Birte Stensgaard, Senior News EditorWednesday, April 20 - 2005 at 13:15 UAE local time (GMT+4)
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