OMAN AIR FIRST AIRLINE IN GULF REGION TO PURCHASE BOEING NEXT-GENERATION 737

Oman Air announced today a combined purchase and lease commitment for a fleet of five Boeing Next-Generation 737s (four 737-700s and one 737-800). Oman Air also announced a commitment for two additional 737-700 options.

The value of the two firm orders is in the neighborhood of $130 million. The announcement was made at a press conference in Muscat, Oman, by Abdul Rahman Al Busaidy, general manager of Oman Air.

Oman Air will introduce the first two new Next-Generation 737 airplanes into service in December 2001. Two more airplanes will join the fleet in July of 2002, with the final purchased airplane delivery planned for May 2004.

The new Next-Generation 737s will replace Oman Air's current fleet of A310 and Boeing 737-400 airplanes.

Oman Air, founded in 1993, is the National Airline of the Sultanate of Oman and a flight partner with KLM Royal Dutch Airlines. The airline currently operates to numerous international destinations, including Abu Dhabi, Al Ain, Chennai, Colombo, Dhaka, Doha, Dubai, Jedda, Kuwait, Mumbai and Trivandrum. Oman Air also serves domestic locations in Oman, including Khasab, Masirah, Salalah and Sur. Muscat is Oman Air's base.

"We are very honored by Oman Air's decision to purchase the Next-Generation 737," said Doug Groseclose, Boeing Commercial Airplanes vice president of International Sales. "As a leading airline in the Gulf Region, Oman Air's operation of this airplane will play an important role in showing passengers and other carriers how efficient, comfortable and reliable the Next-Generation really is."

Al Busaidy said: "We are committed to making Oman's national carrier, Oman Air, one of the most prestigious and customer friendly airlines."

"Oman Air is proud to announce a commitment with The Boeing Company to acquire a fleet of brand new Next-Generation 737 airplanes," he said.

"The deal we are signing today will offer Oman Air the opportunity to enhance network schedules and frequency. "We also can offer our customers enhanced onboard comfort and even greater on-time reliability, as these airplanes are brand new and feature the latest design technology," Al Busaidy said.

Distinguishing itself as a leader in the region, Oman Air is the first commercial operator in the Gulf to purchase Boeing's new version of the 737. The all-new Next-Generation 737 is the best selling airplane in commercial aviation history.

Al Busaidy added: "As our fleet and service area grow it is important that we invest in a fleet that can lead us far into the future. Our relationship with Boeing is not new, and we look forward to many years of continued association. Boeing makes a fine product."

Others in the Gulf region who privately operate versions of the Next-Generation 737 include Amiri Flight, Dubai Air Wing (both with Boeing Business Jets) and Aramco, with a 737-700QC (Quick-Change).

The Boeing Next-Generation 737 flies higher, farther, faster and more efficiently than any other airplane in its class. With extremely high reliability, easy maintenance and operation, the Next-Generation 737 is designed to fit easily into regional airline operations.

In addition to a reduction in fuel consumption of almost 50 per cent over the current A310 jets flown by the carrier, significant savings in maintenance cost are also forecast.