US aviation giant Boeing on Thursday signed a contract valued at US$7 billion to sell 12 Boeing B787 Dreamliners, with options for six more, to Gulf Air, as the Bahrain-based carrier looks to expand its global network.
U.S. Department of Commerce revealed this latest development in a press release on Thursday,
Today, the U.S. Department of Commerce celebrated Boeing and Bahrain’s Gulf Air signing a commercial deal for up to eighteen 787 Dreamliner aircraft worth $7 billion and supporting over 400,000 U.S. jobs over the course of production and delivery. With this sale, Gulf Air will continue to operate an all-Boeing widebody aircraft fleet.
The U.S.-Bahrain relationship is a pillar of economic growth and stability in the Middle East. Cooperation in civil aviation is a critical part of the relationship. As one of the most open economies in the region, Bahrain enjoys a balanced economic relationship with the United States, with total goods trade of $2.9 billion in 2024, including a U.S. goods surplus of $441.9 million.
The agreement was signed in the presence of Bahrain’s Minister of Finance and National Economy, Shaikh Salman bin Khalifa Al Khalifa, and US Secretary of Commerce, Howard Lutnick.
As part of the latest purchase agreement, Gulf Air will equip the B787 Planes with General Electric GEnx engines instead of Rolls-Royce, whose Trent 1000 engines are on the 10 Dreamliners the carrier currently operates.
The order comes just one month after an Air India Boeing 787 crashed shortly after takeoff during flight AI171, killing a total of 260 people on the plane and on the ground.
“Once finalised, this order will bring the carrier’s firm order book to 14 of the versatile wide-body jets and will support 30,000 jobs across the US,” the companies said in a joint statement.
Secretary of Commerce Howard Lutnick, said:
“Today’s deal between Boeing and Gulf Air is yet another example of how companies are working with this administration to invest in America at historic levels,” “American workers, industry, and technology are the best in the world, and this deal demonstrates that.”
The deal “marks a transformative step in Gulf Air’s strategic growth journey as we expand our global footprint and modernise our fleet with one of the industry’s most advanced and efficient aircraft,” said Gulf Air Group chairman Khalid Taqi.
“The Boeing 787 Dreamliner has proven to be an exceptional aircraft for our long-haul operations, and this new order reflects our confidence in its performance, passenger appeal and contribution to our sustainability goals.”
Boeing delivered 150 commercial aircraft in the second quarter, its highest number of deliveries in that quarter since 2018.
That was just before two 737 MAX crashes in October 2018 and March 2019 – which killed 346 people – plunged the company into crisis.
The Air India jet bound for London crashed in the Indian city of Ahmedabad on June 12. A preliminary investigation report revealed that fuel control switches were switched off shortly after takeoff. Boeing has not been asked to take any action as the probe continues.
U.S. Department of Commerce Press release read further,
In the competitive global market for commercial aircraft, the Department of Commerce, including Secretary Lutnick, successfully worked to counter aggressive foreign competition and to communicate the importance of the deal with Bahraini leaders. The government-to-government engagement effort on behalf of Boeing relied on the International Trade Administration (ITA) Global Markets’ U.S. Commercial Service, its regional experts in Washington and overseas, and the Advocacy Center.
In another good news for Boeing, US President Donald Trump on Tuesday announced a trade pact with Indonesia that limits tariffs on Indonesian products at 19% and said the deal features a pledge from the country to buy 50 Boeing jets, “many of them 777s”.
Gulf Air currently operates 10 Boeing 787 aircraft across its network of more than 50 destinations spanning Asia, Europe and North America.
