In pumping installations such as sewage pumping stations, where gas content and air entrainment exist, the computation of fluid pressure transients in the pipelines becomes grossly inaccurate when constant wave speed and constant friction are assumed. A numerical model and computational procedure have been developed here to better compute the fluid pressure transient in a pipeline by including the effects of air entrainment and gas evolution characteristics of the transported fluid. Free and dissolved gases in the fluid and cavitation at the fluid vapour pressure are modelled. Numerical experiments show that entrained, entrapped or released gases amplify the pressure peak, increase surge damping and produce asymmetric pressure surges. The transient pressure shows a longer period for down-surge and a shorter period for upsurge. The up-surge is considerably amplified and the down-surge marginally reduced when compared with the gas-free case. These observations are consistent with the experimental observations of other investigators. Numerical experiments also show that the use of a variable loss factor in the pressure transient analysis produces marginally higher maximum and lower minimum pressure transients when compared with the constant-loss-factor model for pipelines where the pressures are above the fluid vapour pressure.