flydubai, Standard Chartered sign sale and leaseback deal for five Boeing 737 MAX planes

Four aircrafts were delivered between March and May this year with the remaining one scheduled to arrive from Boeing before the end of the first half of 2022.

The companies said the transaction will support the future growth of the airline’s fleet, while highlighting the strong and long-standing relationship between flydubai and Standard Chartered.

Ghaith Al Ghaith, CEO of flydubai, said: “We are pleased to have received Standard Chartered’s support on this transaction which builds on previous aircraft financing and leasing agreements.

“We continue to diversify our sources of funding and attract reliable partners in support of our future growth plans.”

Rola Abu Manneh, CEO of Standard Chartered UAE, added: “Standard Chartered has had a long-standing relationship with flydubai and the Investment Corporation of Dubai across multiple businesses.

“This transaction demonstrates the Bank’s continued commitment to the airline and the Government of Dubai’s vision for the wide spectrum of sectors that support Dubai’s dynamic economy.”

Earlier this month flydubai recorded what it called “exceptional performance” for the first quarter of 2022 as it prepares for a busy summer. Passenger numbers were up 114 percent for the first three months of 2022, compared to the same period last year.

The carrier has grown its network to more than 100 destinations, exceeding pre-pandemic levels. Flydubai says its growing network and added capacity on existing routes, which have been supported by new aircraft deliveries since the start of the year.

In April flydubai revealed a surge in profits to $229 million (AED 841 million) within in its annual results for the financial year ending 31 December 2021.

A sale and leaseback agreement involves one party selling an asset to a buyer and the buyer immediately leases it back to the seller. This allows the seller to make use of the asset while not having capital tied up in the asset.