Flydubai arranges $750 million in aircraft financing
24 September 2010
Dubai's first low-cost airline flydubai said that it has secured aircraft financing deals worth over $750 million from the US-based lessors General Electric Capital Aviation Services (GECAS) and BBAM LLC.
The arrangement will take care of the next 9 aircraft deliveries due for flydubai, and also the carrier's near term financing needs.
''These deals are very significant for flydubai because this committed money secures the next 9 aircraft we are due to receive and mean all our financing requirements until June next year are taken care of,'' Ghaith Al Ghaith, CEO of flydubai, said.
Dubai government established the emirate's first low-cost airline flydubai last year, which began commercial flights on 1 June 2009.
The airline currently owns a fleet of 9 Boeing 737-800NGs, and operates to 22 destinations in the Middle East, Azerbaijan, Sudan, Nepal, Afghanistan, India, Turkey Pakistan, and Sri Lanka, and plans to add 2 more destinations in Russia next month.
The airline expects to receive four more aircraft before the end of 2010, which will be the new Boeing Sky Interior 737-800NG fitted with the revolutionary new type of in-flight entertainment system from Lumexis that the airline announced earlier this year.
GECAS and BBAM are some of the largest aircraft financiers in the world and their faith in flydubai is a huge endorsement for the company and its success since its launch, Ghaith said.