Flydubai seals $350m aircraft finance deal
Dubai, November 3, 2010
Dubai’s budget carrier flydubai said it has inked a $320 million sale and leaseback deal with Ireland-based Avolon for four Boeing 737-800 NG aircraft.
Avlon, headquartered in Dublin, with offices in New York, Hong Kong and Shanghai, provides aircraft leasing and lease management services.
The company said it had executed contracts and letters of intent for the purchase of over 50 aircraft since its launch in May 2010.
The Avolon fleet, comprising Airbus A320s, Boeing 737NGs and Airbus A330s, is valued at in excess of $2 billion, said a statement from the company.
Flydubai said this latest deal, in addition to the recently announced deals with General Electric Capital Aviation Services (GECAS) and Babcock Brown Asset Management (BBAM) to finance nine aircraft, secures the carrier’s needs through to December 2011.
Ghaith Al Ghaith, CEO of flydubai, said: “We are delighted to be able to enter into this partnership with Avolon today. Like flydubai, Avolon is a young, ambitious, dynamic company and we look forward to a long and successful relationship with them.”
'This deal for Boeing aircraft comes just five weeks after our announcement of sale and leaseback agreements for nine aircraft with GECAS and BBAM and takes the total value of the financing we have secured during that period to more than $1 billion.'
'Our next 13 aircraft are now completely financed, which takes us through to December of next year,' he added.
“This is a further indication that the international financing community views flydubai and Dubai itself as a good investment for the future,” said Al Ghaith.
Commenting on the deal, John Higgins, Avolon president and chief commercial officer, said, “We are delighted that flydubai has selected Avolon as a partner in its fleet development plans. A key element of Avolon’s strategy is to identify airlines that are long-term 'winners' and to back them in scale.'
'Our team is uniquely experienced in structuring large and innovative sale and lease-back financings and we look forward to further developing our relationship with flydubai and our presence in the Gulf over the coming years,' he remarked.
Flydubai, which began commercial flights on June 1, 2009, has since grown to a fleet of nine B737-800NG aircraft operating to 24 destinations within a five-hour flight radius of Dubai, said Al Ghaith.
'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,' he added.-TradeArabia News Service