FlyDubai has completed Boeing 737-800 sale and leaseback deals with lessor Macquarie AirFinance and the Dubai Islamic Bank.
The low-cost carrier announced here yesterday the new financing deals, which cover two aircraft that were delivered in May. FlyDubai, which ordered 54 737-800s last year, now operates five 737-800s, with a sixth to be delivered in December. The other four 737-800s, including the aircraft to be delivered in December, were sold to and leased back from GECAS earlier this year.
FlyDubai chief executive Ghaith al Ghaith said the airline is now scheduled to take another seven 737-800s in 2010. FlyDubai last year forged a deal with Babcock & Brown covering three of these aircraft, which will be delivered from next March. FlyDubai has not yet financed the other four aircraft, which will be delivered from next October.
"It's way too early to assume how they will be financed," Ghaith said, adding: "With finance you take the best deal."
Ghaith says the five-year $80 million deal with Dubai Islamic Bank represents the carrier's first financing deal with a Middle Eastern institution. "As a local company this is of great pride for us," Ghaith said, adding: "We're very much a Dubai and UAE airline."
The deal with Macquarie Air Finance is also valued at $80 million and covers a five-year lease commitment. Macquarie AirFinance executive vice-president Colin Bole said the deal increases the lessor's portfolio to 124 aircraft and 55 airlines. Bole said Macquarie has an Airbus A320 at Etihad Airways and two A321s at Gulf Air, but FlyDubai represents its placement at a low-cost carrier in the region.
"We recognise there is tremendous opportunity in the low-cost carrier environment, in particular in the Middle East," Bole said.
He told Flight Daily News that Macquaire has been able to expand its portfolio by five aircraft this year despite the economic downturn and is now looking to acquire more aircraft. "We have the cash. We have access to financing," he said, explaining that Macquaire put in place the financing required to grow its portfolio before the onset of the credit crunch.
Meanwhile, FlyDubai also announced at the show yesterday a $22 million contract with Goodrich covering wheels and brakes for its future A320 fleet. The contract, which also includes aftermarket support, does not cover six A320s that will be in FlyDubai's fleet at year-end. The first A320 to be covered by the Goodrich deal will be aircraft number seven, to be delivered next March.
Source: Flight Daily News
