flydubai Secures More Than Three Quarters of a Billion Dollars of Aircraft Financing
flydubai, Dubai's first low cost airline, has announced aircraft financing worth more than US$750m in deals with GECAS (General Electric Capital Aviation Services) and BBAM.
The financing will take care of the next nine aircraft flydubai is due to receive and secures all the airline's financing requirements until June 2011.
Ghaith Al Ghaith, CEO of flydubai, said: "I am delighted to be able to announce this aircraft financing today. These deals are very significant for flydubai because this committed money secures the next nine aircraft we are due to receive and mean all our financing requirements until June next year are taken care of.
"We already have agreements in place with both GECAS and BBAM and it is clear from their willingness to enter into further ties with us that they have been pleased with what flydubai has delivered so far. These are some of the largest aircraft financers in the world and their faith in flydubai is a huge endorsement of us and our success since our launch.
"When we went out to the markets this time to seek financing for our aircraft we were overwhelmed by the response. At the end of the day we received offers for far more aircraft than we needed to finance, which is a very nice position for a young and ambitious airline to be in. I believe this is a reflection not only of our position but also of the confidence the financial community around the world has in Dubai."
Both deals are eight year term sale and leaseback agreements. The agreement with GECAS is for six aircraft, taking the total number of flydubai aircraft GECAS finances to 10. BBAM are adding another three aircraft to make their total commitment six.
Norm C. T. Liu, President and CEO of GECAS, said: "During its first 15 months of operations, flydubai has worked to build a solid foundation for future growth. GECAS is pleased to continue our partnership with this rapidly expanding airline, and provide the financial support they need to continue their impressive growth."
Steve Zissis, President of BBAM, said: "We signed our first financing deal with flydubai at the same time the airline announced its historic aircraft order for more than 50 Boeing 737-800NGs at Farnborough in July 2008. We're very pleased to be able to strengthen our relationship with flydubai and look forward to many more years of partnership. Our partnership with flydubai is an excellent example of BBAM's expansive global footprint and ability to provide solutions for airlines in every stage of development."
flydubai began commercial flights on June 1, 2009. Since then the airline has grown to a fleet of nine B737-800NG aircraft operating to 22 destinations within a five hour flight radius of Dubai. Four more aircraft are due to be received before the end of this calendar year. These will be the new Boeing Sky Interior 737-800NG and will be fitted with the revolutionary new type of in-flight entertainment system from Lumexis that the airline announced earlier this year.
- Restoring confidence: Can S&P bank upgrade help Lebanon's economy?
- Getting their priorities straight: Emirati households spending more on phones, cars than education
- Why Qatar stocks hit six year high this week
- Are Arab Bankers right to blame the region's deteriorating economies on the Arab Spring?
- Spotlight on Saudi Arabia’s "resilient" banking sector