Gulf Air expects funding for fleet growth, upgrade and replacement programme to be in place by May 2006

The decision to accelerate the replacement of the airline's nine Boeing 767s was one of several major resolutions in support of the Smart Airline, Successful Business strategy, that were passed at the first Board meeting under Gulf Air's new ownership structure held in the Sultanate of Oman last week.

President and Chief Executive James Hogan said that discussions with financial institutions were nearing their conclusion.

"The renewed confidence the financial markets have in Gulf Air's commercial performance over the past few years has resulted in us moving forward at a good pace," he said. "We are confident of making a formal announcement on funding in the next three months along with a Memorandum of Understanding with one of the airframe manufacturers."

Hogan, is in the Far East on an official visit to launch the airline's new year round non-stop direct flights from Kuala Lumpur to Muscat, Oman and then onto Bahrain, three times a week with an increase to five times per week during the high demand Summer period.

"The launch of these flights further demonstrates our commitment to this market, which we believe has great potential for Gulf Air. We are delighted to be in Malaysia and we look forward to strengthening our position by offering world class service in which the cultural richness and traditions of Arabia are brought to life," said Hogan.

"The new service will also provide options for Middle Eastern travellers to experience Malaysia's exotic destinations. Moving forward, we shall be focusing on corporate and business travel for this market.

Gulf Air's highly-trained crew comprises more than 80 nationalities, speaking some 70 different languages, reflecting the truly multinational nature of the airline.

Gulf Air has been flying to Malaysia since 1995. This new non-stop service replaces the current service that operates via Bangkok.

Hogan said Gulf Air hoped to develop Oman as a key gateway to the Gulf, Middle East and Europe. Flight connections to its new destinations of Dublin and Johannesburg, which were launched in December last year, will further open up new leisure markets.