Dubai’s new budget airline FlyDubai has placed an order for over fifty Boeing aircraft in a $4bn deal announced today at the Farnborough International Air Show in England.
The deal is the biggest single order of Boeing ‘Next-Generation’ 737-800 aircraft by a Gulf-based low cost carrier. It comprises a firm order for 50 aircraft from Boeing and a separate leasing agreement with Babcock & Brown Aircraft Management (BBAM) for a further four aircraft.
“This aircraft is ideally suited to our core business, which is providing affordable, efficient and flexible options for people wishing to travel to and from Dubai,” said FlyDubai Chairman Sheikh Ahmed Bin Saeed Al Maktoum, who signed the deal.
“Our relationship with the UAE is something we truly value and have worked to strengthen over time,” said Jim McNerney, Boeing Chairman, President and CEO. “We foresee the unmatched efficiency and operability of this incredible airplane bringing the same success to our partners in Dubai as it does to so many of the world’s most successful low-cost carriers.”
FlyDubai will compete with a number of other low-cost operators in the Gulf, including Air Arabia, Jazeera Airways, Sama and Nas Air. Its launch was announced at a time of record fuel prices.
Ghaith Al Ghaith, Chief Executive, FlyDubai, commented: “The ability to make such a significant aircraft order highlights the confidence we have in the future of FlyDubai – a confidence which is shared by the government of Dubai and our partners.”
Babcock & Brown Aircraft Management manages the world’s fourth largest commercial jet fleet by value. Steve Zissis, President of BBAM, said: “We are delighted to form a partnership with FlyDubai and provide support for the government of Dubai at the very foundation of this exciting new airline, which continues the incredible growth of the aviation industry in Dubai.”
The 737-800 is a single aisle aircraft configured with 189 Economy Class seats. It has a flying range of 4.5 hours, which will give FlyDubai access to an estimated two billion potential customers. The company has retained substitution rights to convert the 737-800s into 737-900ERs (extended range) in the future.
FlyDubai was formed by the Dubai Government in March 2008. The first flights are due to take off in mid-2009, Sheikh Ahmed announced last month.
Sheikh Ahmed, who is also chairman of Emirates airline, said that FlyDubai will be based at Al Maktoum International Airport in Jebel Ali, and will operate separately from Dubai's flagship carrier.