In terms of the agreement, Standard Chartered Bank, acting as the arranger and agent for the consortium of lenders, which includes seven banks, will extend credit facilities valued at USD75 million to the airline. The loan is repayable over a period of three years.

In formulating its new ten-year strategy, the airline identified a requirement for further credit facilities that will allow it to maintain the momentum of the growth and change achieved during the implementation of its three-year restructuring programme, Project Falcon.

"Despite significant challenges from fuel and competition within the region, we have made positive progress re-engineering our business," said James Hogan, Gulf Air's President and Chief Executive. "Abu Dhabi's withdrawal has necessitated a rethink of our strategy around a two-hub approach. This will require changes to our network, routes, fleet, and allocation of resources."

"This means that we have to keep investing in the core areas of our business. In some areas, consolidation and traditional style cut backs will be necessary, but in principle we are confident that we can build on what we have achieved to date and this will require a bold, progressive strategy underscored by significant investment."

In 2006, Gulf Air's investment will be most visible in the airline's state-of-the-art simulator centre, which will be opened in the first quarter of the year. The airline has also signed an agreement for the provision and installation of new First and Business Class seats in its Airbus A340 aircraft and the simultaneous refurbishment of the aircraft interiors to match the standards of the award-winning A330 fleet. Gulf Air will also install new in-flight entertainment systems during the year.

"Gulf Air's Project Falcon initiatives have been instrumental in re-establishing the airline on the world stage as a leading service brand and unique regional airline," said John Iossifidis Regional Head, Client Relationships, Wholesale Banking at SCB. "We are delighted to be working with Gulf Air again and look forward to supporting their strategy for the future."

"Standard Chartered Bank works in partnership with several leading multi-national companies in the Middle East and has a growing portfolio of structured trade finance facilities, which demonstrate the success of our commitment to bringing our global expertise and range of products to our customers in this region," said Aleem Khan, Managing Director, Structured Trade Finance, Middle East and South Asia.

-Ends-

About Standard Chartered
Standard Chartered - leading the way in Asia, Africa and the Middle East
Standard Chartered is one of the world's most international banks, employing over 40,000 people, representing 80 nationalities, across its network. Standard Chartered operates in over 1,200 locations (including subsidiaries, associates and joint ventures) in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas.

Standard Chartered PLC is listed on both the London Stock Exchange and the Stock Exchange of Hong Kong and is in the top 25 FTSE-100 companies, by market capitalisation.

It serves both Consumer and Wholesale Banking customers. Consumer Banking provides credit cards, personal loans, mortgages, deposit taking and wealth management services to individuals and small to medium sized enterprises. Wholesale Banking provides corporate and institutional clients with services in trade finance, cash management, lending, securities services, foreign exchange, debt capital markets and corporate finance.

Standard Chartered is well-established in growth markets and aims to be the right partner for its customers. The Bank combines deep local knowledge with global capability.

The Bank is trusted across its network for its standard of governance and corporate responsibility as well as its commitment to making a difference in the communities in which it operates. 

About Gulf Air
Founded in 1950, Gulf Air is presently owned by the Kingdom of Bahrain, the Sultanate of Oman and the Emirate of Abu Dhabi and is the only truly Pan Gulf carrier in the region.

More than half a century later, the regional, geographic and cultural values that the airline has embraced over more than half a century are still central in defining the brand and service ethos within the contemporary and global environment.

Today the airline's network stretches from Europe to Asia and covers 44 cities in 30 countries. The fleet comprises 34 aircraft.

Under President and Chief Executive James Hogan, the successful implementation of the first phase of a restructuring programme, which commenced in 2003, has resulted in the establishment of a platform for sustained commercial operation.

It has also provided a framework for a succession of innovative products and services including the unique Sky Chefs and Sky Nannies that form part of Gulf Air's 'boutique airline' vision.

The dramatic turnaround in fortunes has won international recognition.  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, which recognised the airline's commitment to service excellence. Other awards include:

Winner - Middle East Leading First Class Airline, World Travel Awards 2005

Winner - World's Leading Airport Lounge, World Travel Awards 2005

Winner - Middle East & 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 2006

For further information please contact:
GULF AIR PRESS OFFICE
T: +973 17 338821
F: +973 17 338207
 
Sanjoy Chowdhury
Senior Manager, Corporate Affairs,
Standard Chartered Bank
Tel: +971 (0) 4 5070518
Fax: +971 (0) 4 3594174
Mobile: +971 (0) 50 4579720
Email :  Sanjoy.Chowdhury@ae.standardchartered.com

© Press Release 2005

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