flydubai announces $160m worth financing deal

DUBAI – flydubai, Dubai’s first low cost airline, has announced two aircraft financing deals worth $160m on the second day of the 2009 Dubai Airshow.

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Published: Mon 16 Nov 2009, 4:04 PM

Last updated: Thu 2 Apr 2015, 8:25 AM

The financing covers the first two aircraft that flydubai received in May of this year and ensures all six aircraft the budget carrier will have by the end of this year are permanently financed.

The first deal is with Macquarie AirFinance, a global aircraft leasing company providing aircraft and capital to the world’s commercial airlines. Worth $80m, at list prices, this is a medium term sale and leaseback agreement similar to the deal flydubai signed earlier in the year with GECAS (GE Capital Aviation Services).

The other deal is with Dubai Islamic Bankand marks flydubai’s first financing from within the UAE. Again a five year deal worth $80m, at list prices, this Ijara agreement is the first Islamic financing for flydubai.

Ghaith Al Ghaith, CEO of flydubai said: “I am delighted to announce these financing deals today. With these two agreements we have now succeeded in securing backing from some of the biggest names in aircraft financing from home and abroad.”

John Willingham, CEO of Macquarie AirFinance, said: “flydubai is a great example of a start up company that has a solid and viable long term business plan. We’re very excited to be part of the continued growth of Dubai and we look forward to an excellent working relationship with flydubai.”

Abdulla Al Hamli, Chief Executive Officer of DIB, added: “DIB strongly believes in the significance of the aviation sector to the growth of the UAE economy. Credited with issuing the world’s first airline sukuk, DIB has also supported the expansion of Dubai International Airport. This Ijara financing for flydubai is a demonstration of our commitment to Dubai’s dynamic aviation sector and the economy at large.”

flydubai was set up by the government of Dubai in March 2008 with a start up capital of Dh 250m. The airline began commercial operations on 1st of June, 2009 with flights to the Lebanese capital, Beirut. Since then flydubai has begun flights to a further seven destinations, Amman, Alexandria, Aleppo, Damascus, Djibouti, Doha and Khartoum. Flights to flydubai’s ninth destination, Baku, begin on Friday, November 20.

The flydubai model is simple, with customers paying only for the services they want to receive. The price includes all taxes and one piece of hand baggage, weighing up to 10 kg, per passenger.

Passengers have the option to purchase checked-in baggage in advance at just Dh 40 for the first piece and Dh 100 for the second, weighing up to 32 kg, subject to availability. Checked baggage at the airport is also strictly subject to availability and passengers are advised to book online early to secure the space, as only pre-purchased baggage can be guaranteed.

A nominal payment of Dh 5 allows customers to select their seat and just Dh 50 secures the extra legroom positions. Bookings can be changed for a small fee, plus any difference in the fare, and food and drink can be purchased on board.

flydubai operates from a modernised and enhanced Terminal 2 on the north side of Dubai International Airport.


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