Airline in good shape to continue momentum in 2009

Gulf Air, the national airline of the Kingdom of Bahrain, continues its record performance this year with the best October aircraft occupancy rate to date. The carrier is set to continue the momentum into 2009.

The airline�s seat-load factor in October was an average 74.9% compared with 66.4% last year. The previous record was 71%, set in October 2004.

�Our excellent performance in October again bears testimony to our successful alignment strategy. Our revamped network with a customer-friendly schedule, improved punctuality and strategic business alignment, continue to bear fruit," said Gulf Air Chief Executive Officer Mr. Bj�rn N�f.

Gulf Air�s overall yield has increased by 13% since the new management team, led by Mr. N�f, took over last July. The 2008 yield is 12% higher than in 2007. The revenue per available seat capacity (RASK) has also increased by 16% and Gulf Air recorded its highest seat-load factors in the airline�s history in May, June, July and August and September �I am especially delighted with our long haul performance, which indicates the strength of our product and network in a global market. Encouraged by the strong performance, we have now already increased frequencies to Paris and Frankfurt. We are on target to carry six million passengers this year and we are set to continue our momentum towards sustainable growth and introducing even higher service standards in 2009.�

Mr. Tero Taskila, Gulf Air Chief Strategy Officer said: "Our repeatedly successful occupancy rate, despite the economic slowdown, is due to our simple yet effective strategy of meeting demand with supply at a competitive price and we have one of the best aircraft utilization in the region and an award-winning service to back us. Strong performance in all the classes continues and we are looking at our forward bookings very carefully to adjust our capacity to the demand. So far, the global economic slow-down has not hit us.

�We will continue to expand our network to strategic destinations and take the Gulf Air brand to greater heights."

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About Gulf Air

Gulf Air was founded in 1950. Today, it is owned by the Kingdom of Bahrain, and is the only truly pan Gulf carrier in the region. The airline�s network stretches from Europe to Asia and covers 42 cities in 27 countries. The current fleet of Gulf Air consists of 27 aircraft.

On January 17th Gulf Air Board of Directors confirmed the appointment of Bj�rn N�f as the Chief Executive Officer for Bahrain�s national carrier.

Mr. N�f, who brings across the broad experience in aviation industry, has been instrumental in implementing the new revamped network launched on July 1 and is also the commander of a major alignment program to turnaround Gulf Air. The plan entails a simplified and more efficient organization structure; an improved network with lower connection times and better service to key destinations, better on-board product, better customer service on the ground and a better punctuality, which has been improving under his command.

The new network, based on a "wave" model, offers more than 588 flights every week in the Middle East with more non-stop flights than any other airline.

The airline is also planning to re-fleet itself over the next five years to further strengthen its presence. It recently signed a deal worth nearly US $ 6 billion with Boeing Co. to purchase up to 24 Boeing 787 aircraft and another deal with Airbus for 35 aircraft, including A320s and A330s.

The airline aims to become the carrier of choice. Gulf Air�s onboard service caters high quality products and services, including the innovative, unique and award winning Sky Chefs and Sky Nannies. Some of the notable recognition includes:

� Best Onboard Catering in First Class 2007 (Sky Trax Awards) � Best Onboard Catering in First Class 2006 (Sky Trax Awards) � Best Onboard Catering in Business Class 2006 (Sky Trax Awards) � Best Business Airline 2006 (British Travel Awards) � Best Onboard Service 2006 (Gold) (Mercury Awards) � Official Airline and Sponsor of the Gulf Air Bahrain Grand Prix 2009. For further information and photography, please contact: Abby Smith, PR Manager Europe, Gulf Air Tel: +44 208 6007404 Mob: +44 77 48840932 Email: Abby.Smith@gulfair.com