flydubai Agrees Financing for four B737-800NGs worth $320m with Avolon
flydubai, Dubai’s first low cost airline, has announced sale and leaseback agreements on four aircraft worth US$320m at list prices with aircraft leasing company Avolon
Thursday, October 28, 2010 — flydubai, Dubai’s first low cost airline, has announced sale and leaseback agreements on four aircraft worth US$320m at list prices with aircraft leasing company Avolon.
In addition to recently announced deals with GECAS and BBAM to finance nine aircraft, this latest deal secures flydubai’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 four Boeing 737-800NG 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 US$1 billion. Our next 13 aircraft are now completely financed, which takes us through to Dec of next year.
“This is a further indication that the international financing community views flydubai and Dubai itself as a good investment for the future.”
Since its launch in May, 2010, Avolon has executed contracts and letters of intent for the purchase of 48 aircraft. The Avolon fleet, comprising Airbus A320s, Boeing 737NGs and Airbus A330s, is now valued at over US$2 billion.
John Higgins, Avolon President and Chief Commercial Officer, commented: “We are delighted that flydubai has selected Avolon as a partner for its fleet development plans. We look forward to building a continuing relationship with them in the coming years.”
“We have established a truly international business with an experienced team in a short time and look forward to continuing to provide financing solutions to airlines in both the mature and rapidly growing markets around the world.”
flydubai began commercial flights on June 1, 2009. Since then the airline has grown to a fleet of nine B737-800NG aircraft operating to 24 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.
