AAR Extends Reach in Middle East with flydubai PBH Contract
Dubai-based airline selects global aviation services leader to support fleet
Friday, August 19, 2016 — AAR (NYSE: AIR), a leading provider of aircraft maintenance and integrated supply chain solutions worldwide, has signed a long-term, multimillion-dollar contract to provide power-by-the-hour (PBH) component inventory management and repair services to Dubai-based flydubai. The agreement represents a significant expansion of AAR’s commercial footprint in the Middle East.
AAR will assume nose-to-tail management of components and repairs for flydubai’s Next-Generation Boeing 737-800 fleet, starting with 53 aircraft and increasing to 60. In November 2013, flydubai announced an order for 75 737 MAX 8s and 11 Next-Generation Boeing 737-800s valued at USD 8.8 billion at list prices in addition to purchase rights for 25 more 737 MAXs. In 2015, flydubai carried more than 9 million passengers across its network of more than 85 destinations, becoming the second largest carrier, by passenger numbers, operating out of Dubai International.
“As flydubai continues on its robust growth trajectory, it must optimize its fleet’s performance while minimizing costs and aircraft-on-ground time,” said Deepak Sharma, President, AAR international supply chain. “Given AAR’s experience helping airlines increase operational efficiencies, flydubai decided we are the right partner for the crucial behind-the-scenes work.”
“Focusing our efforts on supporting customers in the Middle East region has paid off,” said AAR’s Rahul Shah, Senior Vice President, Strategic Growth and Business Development, Asia Pacific, Middle East and Africa. “We are pleased that flydubai has entrusted AAR to provide long-term component support of its Next-Generation Boeing 737-800 fleet.”
Mick Hill, SVP Engineering and Maintenance at flydubai said: “We continue to invest in technologies and partnerships that strengthen our commitment to maintain the highest levels of efficiency in our operations and cost management systems. We are excited about our component inventory management and repair services agreement with AAR which will help us reduce aircraft-on-ground time and consequently contribute to the bottom line.”
The Dubai-based carrier, operating out of Terminal 2 at Dubai International (DXB) and the newly opened Al Maktoum Airport (DWC), is committed to opening up underserved markets and provides direct links from Dubai to 59 destinations that previously had no or very few links to the UAE.