flydubai signs $228m deal to finance six new planes

Dubai carrier says it has inked agreement with five banks to fund expansion of its fleet
Flydubai chief executive officer Ghaith al-Ghaith
By Andy Sambidge
Wed 06 Nov 2013 02:18 PM

Dubai-based flydubai said on Wedneday it has signed a $228m deal with five banks to finance six new Boeing 737-800 aircraft.

The financing agreement is for two recently delivered aircraft, one more scheduled for delivery by the end of the year and three scheduled to be delivered in the second half of 2014, the carrier said in a statement.

The five banks which arranged the financing were Norddeutsche LandesbankGirozentrale, Crédit Agricole Corporate & Investment Bank, Gulf International Bank, PK AirFinance Japan and Landesbank Hessen-Thüringen Girozentrale.

The commercial bank funding is structured as a finance lease with quarterly loan repayments over a 10 to 12 year term, flydubai added.

"The funding is attractively priced to the market with an option for the interest rate to be floating or fixed during the term of the loan," the statement said.

flydubai’s CEO, Ghaith Al Ghaith, said: “We thank the banks for their support and we look forward to strengthening our relationship with them in the future.”

flydubai’s network of more than 65 destinations covers 34 countries in the Middle East, the GCC, Africa, Europe, the Caucasus, Central Asia and the Subcontinent.

The network includes more than 46 destinations that did not previously have direct air links to Dubai served by a UAE national carrier.

Last month, flydubai aid its first flight offering Business Class services took off to eastern Europe.

Passengers of flight FZ729 to Kiev's Boryspil Airport, Ukraine were the first to experience the carrier's new product offering.

The airline announced the launch of the new service earlier in June this year based on customer demand.

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