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