flydubai signs Maintenance Deals worth $54 million with ADAT

Five-year integrated component support agreement will enhance the airline's on time performance

Tuesday, November 15, 2011 — flydubai, Dubai's pioneering low cost airline, has signed two new fleet Maintenance, Repair and Overhaul (MRO) contracts with Abu Dhabi Aircraft Technologies (ADAT), part of the Mubadala Aerospace MRO network, with a combined value of $54 million.

The primary agreement, for ICS (Integrated Component Support), covers the Repair Management and Forward Component Exchange and will see ADAT provide Total Material Support to flydubai's entire fleet. With a growing fleet, the contract allows flydubai to budget its maintenance spend in advance, while also having spare parts readily available. By outsourcing the maintenance and components support and management to ADAT, flydubai will benefit from reduced maintenance costs and increased capital liquidity, as a result of having to hold less spare parts. This will create a saving of $35 million for the airline over the next five years. flydubai currently has 20 Boeing 737-800 NG aircraft with another 30 due to be delivered by the end of 2016.

flydubai CEO Ghaith Al Ghaith said "At flydubai, we aim to make travel a little less complex, a little less stressful and a little less expensive. Signing this contract with ADAT has helped to minimise any maintenance-related delays, enhancing our on time performance. This reduces impact on our flying schedule, enabling passengers to reach their destination on time and in well maintained and safe aircraft, while maintaining our on time performance record, which is one of the best in the industry."

This contract follows the excellent performance shown on a $25 million ten-year contract, signed last year, for ADAT, the Middle East's largest independent MRO services provider, to perform maintenance on flydubai's wheels, brakes, oxygen bottles and batteries.

Commenting on the partnership, which is supported by Sanad Aero Solutions (Sanad), Mubadala Aerospace's component and engine financing solutions company, Group CEO of the Mubadala Aerospace MRO network, James Stewart said: "We are greatly looking forward to working closely with flydubai over the next five years and are delighted that ADAT's dedication to its customers and investments in state-of-the-art facilities continue to make us the region's MRO of choice, offering market leading maintenance solutions which help reduce the airlines' costs and support increased liquidity."

Meanwhile, in a related move, ADAT has secured a new contract to complete 18 C checks on flydubai aircraft throughout 2012. The $1.3 million deal, for a combination of C1 (carried out after 6,000 flying hours) and C2 checks (completed after 12,000 flying hours), follows an existing deal signed earlier this year for 10 C checks, and those completed were done  to the airline's satisfaction.

Mick Hills, flydubai's Divisional Head - Engineering & Maintenance, said: "We have been very pleased with the quality of ADAT's work to date and their excellent turnaround time performance has been of great benefit. With such high fleet utilisation it is essential that we have a maintenance partner who understands the need for very short maintenance inputs. When combined with the competitive rates for next year, we are confident this contract will again prove beneficial to both parties."

flydubai has a simple model where customers only pay for services they want to receive. Fares are inclusive of all taxes plus one piece of hand luggage weighing up to 7kg and one small laptop bag or hand bag. Checked baggage starts at AED50 for 20kgs. A seat with extra legroom costs AED100.

flydubai operates from the modernised Terminal 2 building on the north side of Dubai International Airport.