We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 3 Nov 2010 01:14 PM

Font Size

- Aa +

Dubai's flydubai signs $320m aicraft deals with Avolon

Low-cost carrier inks sale and leaseback deals on four Boeing 737-800 NG aircraft

Dubai's flydubai signs $320m aicraft deals with Avolon
BUDGET CARRIER: flydubai competes with airlines including UAEs Air Arabia and Kuwaits Jazeera Airways

Low-cost Dubai carrier flydubai has signed sale and leaseback deals on four Boeing 737-800 NG aircraft valued at $320m at list prices with Dublin-based aircraft leasing company Avolon.

The deal follows agreements with BBAM and GE Capital Aviation Services to finance nine aircraft, and brings the total value of deals in the past five weeks to $1bn, the company said on Wednesday.

"Our next 13 aircraft are now completely financed, which takes us through to December of next year," chief executive Ghaith al-Ghaith said. "This is a further indication that the international financing community views flydubai and Dubai itself as a good investment for the future."

A spat between global airlines over export credit agencies financing Gulf Arab carriers has escalated over the past month with leading airlines calling on Europe and the United States to implement a 20 percent export financing cap.

US and European airlines say Gulf rivals get subsidies and export credits allowing them to grow at a breakneck pace and take market share, which airlines such as Dubai's Emirates deny.

In June, Dubai announced plans to more than double flydubai's capital to AED500m ($136m).

flydubai, which started commercial flights in June 2009, competes with airlines including United Arab Emirates-based Air Arabia  and Kuwait's Jazeera Airways.

The airline operates a fleet of nine Boeing 737-800NG aircraft, servicing 24 destinations within a five-hour flight radius from Dubai. It expects to receive four more aircraft -- new Boeing Sky Interior 737-800NG -- before the end of the year. ($1 = AED3.672)

Arabian Business: why we're going behind a paywall

For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.