Bahrain Airshow: Start up signs $2 billion CSeries deal to launch Saudi domestic carrier

Pictured: (L-R) John Kassis, Mike Arcamone, Tariq Abdul Hadi Al-Qahtani and Samer Majali

The airline is Saudi Gulf, owned by Al-Qahtani group. The company has used Bahrain national carrier Gulf Air as a consultant, and former Gulf Air and Royal Jordanian chief executive Samer Majali is president of the new start-up which should begin operations in the fourth quarter of 2015.

Saudi Gulf signed an order for 16 Bombardier CSeries CS300s, plus 10 options. At the Bahrain Air Show which opened today. At list prices, the 16 aircraft are worth around $2 billion, with the options, if exercised, accounting for a further $1 billion. Deliveries will run from late 2015 into 2016.

The Al Qahtani Group, also advised by Gulf Air, was awarded one of two new airline licences in December 2012. The other is held by Qatar Airways.

Saudi Gulf will be based in Dammam and initially focus on domestic services covering Dammam, Jeddah, Riyadh and secondary Saudi cities before expanding to regional destinations.

Further aircraft purchases are planned.  Majali said the Qahtani Group intended to make Saudi Gulf a premium product, with the CS300 having a two-class layout with around 135 seats.

 Bombardier Commercial Aircraft president Mike Arcamone said that the new airline had “picked everything on the option list” to provide high levels of passenger comfort, IFE and communications systems. 

“It’s going to be one of the richest luxury interiors that our customers have ordered. I can’t wait to fly on it,” he said.  

Airlines other than national carrier - the government-owned Saudia - have historically struggled with access to fuel, catering and ground handling services at rates that would allow competition with the flag carrier. But Majali said Saudi Arabia’s civil aviation authority GACA are firmly behind the liberalisation and that  he was confident that Saudi Gulf would complement the activities of the “sister” airline Saudia.

With the largest population in the region of around 28 million, but only two main airlines (Saudia and FlyNas) Saudi Arabia was a contrast to most Gulf states, which had large airlines but small populations, Majali said.

“There’s a whole transformation process happening in the Kingdom of Saudi Arabia, to offer better services to the travelling public,” he said.

Bombardier’s regional vice president of sales, John Kassis said the manufacturer was confident it would meet the delivery schedule.  Although having suffered some delays, the Cseries is expected to achieve certification and entry into service early in 2015.