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29 March 2024

Flydubai in $320m financing deal

Flydubai's next 13 aircraft fully financed. (FILE)

Published
By Staff

Flydubai, Dubai’s first low cost airline, on Wednesday announced sale and leaseback agreements on four Boeing 737-800 NG aircraft worth $320m at list prices with aircraft leasing group Avolon.

In addition to recently announced deals with Gecas and BBAM to finance nine aircraft, this latest deal secures flydubai’s needs through to December 2011, said a press statement.

“Our next 13 aircraft are now completely financed, which takes us through to December of next year,” said Ghaith Al Ghaith, CEO of flydubai.

“This deal for four Boeing 737-800NG aircraft comes just five weeks after our announcement of sale and leaseback agreements for nine aircraft with Gecas and BBAM and takes the total value of the financing we have secured during that period to more than $1bn,” he said.

Since launch in May, 2010, Avolon has executed contracts and letters of intent for the purchase of over 50 aircraft. The Avolon fleet, comprising Airbus A320s, Boeing 737NGs and Airbus A330s, is valued at in excess of $2bn.

“A key element of Avolon’s strategy is to identify airlines that are long-term winners and to back them in scale,” said John Higgins, Avolon President and Chief Commercial Officer.

Flydubai began commercial flights on June 1, 2009. Since then the airline has grown to a fleet of nine B737-800NG aircraft operating to 24 destinations within a five-hour flight radius of Dubai. Four more aircraft are due to be received before the end of this calendar year. These will be the new Boeing Sky Interior 737-800NG and will be fitted with the revolutionary new type of in-flight entertainment system from Lumexis that the airline announced earlier this year.