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FlyDubai Signs 2 Aircraft Financing Agreements

DUBAI — Flydubai, Dubai’s first low cost carrier, on Monday signed two aircraft financing agreements worth $160 million, and a $22 million contract with Goodrich Corporation for wheels and carbon brakes for 54 planes, its Chief Executive Officer Ghaith Al Ghaith said at the Dubai Airshow.

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

The Dubai government-owned airline secured the funds from Macquarie Group Ltd. and from Dubai Islamic Bank, Al Gaith said. The bank provided a five-year Ijara loan, he added.

The first $80 million five-year Ijara deal was signed with Dubai Islamic Bank, or DIB, and the second was with Macquarie AirFinance, also
 worth $80 million.

“With these two agreements we have now succeeded in securing backing from some of the biggest names in aircraft financing from home and abroad,” Al Ghaith said.

The budget airline, which was launched in May, also signed a $22 million with Goodrich Corporation to supply flydubai with wheels and carbon brakes for its 54 Boeing 737-800 aircraft.

“This product will increase our brake removal intervals and significantly reduce the weight of the aircraft in service, thus enabling us to lower our operating costs. We also will enjoy the added benefit of fewer emissions due to the significant weight savings the Goodrich wheels and brakes bring to our Next-Generation 737 fleet,”
 Al Ghaith said.

“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,” Abdulla Al Hamli, Chief Executive Officer of the bank, said. 
—abdulbasit@khaleejtimes.com