Boeing wins $27 billion flydubai order

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Boeing wins $27 billion flydubai order
Boeing commercial airplanes on display at the firm's pavilion.

dubai - Airline announces a commitment to 225 Boeing 737 MAX aircraft

by

Issac John

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Published: Wed 15 Nov 2017, 8:11 PM

Last updated: Wed 15 Nov 2017, 10:14 PM

The Gulf's leading low-cost carrier flydubai announced on Wednesday a commitment to a $27 billion order for 225 Boeing 737 MAX aircraft at the Dubai Airshow.

The deal, hailed by the US plane maker as the "largest-ever single-aisle jet order" from a Middle East carrier, is the third aircraft order placed by the airline with Boeing in its eight-year history and follows orders placed in 2008 and 2013.

Flydubai said the new aircraft order would support its continued expansion within a geographic area that is home to 2.5 billion people.

"Today's aircraft order underlines the success of flydubai's founding vision helping to strengthen trade and tourism links across its network and has contributed to the enhanced connectivity of Dubai's aviation hub," said Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the budget carrier.

The airline by the end of the year will have a fleet of 61 next-generation Boeing 737-800 aircraft and Boeing 737 MAX 8 aircraft. In addition, there is a pipeline of 70 aircraft due for delivery by 2023.

With the new deal, Boeing has won orders worth $42 billion from two Dubai-based carriers. On the opening day of the Air Show, Emirates signed a $15.1 billion order for 40 Boeing 787-10 Dreamliners.

With the latest announcement, the total number of aircraft flydubai has on order will rise to 320.

"Today marks the next chapter in flydubai's success story. Since we launched in 2009, flydubai has opened up 67 previously underserved markets serving our passengers across the region," said Ghaith Al Ghaith, CEO of flydubai.
"We welcome the continuation of our long partnership with Boeing. We ordered this aircraft model as it has given us the versatility and flexibility to carry 44 million passengers since our first flight," said Al Ghaith.

Boeing Commercial Airplanes president and CEO Kevin McAllister said the record-breaking agreement builds on his company's strong partnership with flydubai and other leading carriers of this region. "With flydubai's proven business model and ambitious growth plans, we look forward to hundreds of flydubai 737 MAXs connecting Dubai with the rest of the world," said McAllister.

Saj Ahmad, an analyst at London's StrategicAero Research, said flydubai's selection of the 737 MAX family comes as no surprise. "As the biggest 737 operator in the GCC, it made perfect sense to stay with the 737 MAX to expand its leadership in tandem with its ever-growing relationship with Emirates.

The size of the order, for 225 airplanes, including the new 737-9 which is in flight testing and the newly launched 737-10, underscores flydubai's intent to expand its operations as it prepares for shifting operations to Terminal Three at Dubai International to sit with Emirates, ahead of their joint move to Dubai World Central later on."
By sticking to 737s, flydubai will continue to keep a common fleet,  ensuring training and procurement costs are lower and the economies of scale it will generate will ultimately aid the airline's drive to lower costs and become more aggressive on pricing, said Ahmad.
He said the selection of the 737 MAX 10, which can seat over 230 passengers, would provide an excellent fit under Emirates' recently selected 787-9s.
- issacjohn@khaleejtimes.com


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