Bahrain's national carrier Gulf Air is expanding its fleet management deal with SIA Engineering.

Just three weeks after signing an initial US$100 million contract, it has agreed to spend another US$35 million to have the Singapore-based air maintenance firm look after more planes.

The agreement will see SIA providing a range of engineering services to the Bahraini carrier's 33 Airbus planes.

This is SIA Engineering's first fleet management project in the Middle East. It hopes the deal will be a launch pad for further expansion into the region.

Stephen Lee, chairman of SIA Engineering, said: "This project represents the result of an extensive search to go out of the region to look for business opportunities. The Middle East is not a very easy market - it took quite a bit of understanding and cultivating.

"Gulf Air will receive full attention over the next two years to try to make sure that we measure up to their expectations and the service that we provide can help them in their ambition to become an aviation leader."

Gulf Air is in the process of re-fleeting - a strategy it is undertaking over the next five years to strengthen its presence in the Middle East and further afield.

The airline recently signed a deal with Boeing, worth nearly US$6 billion, to buy up to 24 Boeing 787s and another deal with Airbus for 35 aircraft.