Flydubai in $350m Finance Deal
Dubai’s budget carrier flydubai signed a $320 million sale and leaseback deal with Ireland-based Avolon for 4 Boeing 737-800 NG aircraft.
Avlon, headquartered in Dublin, with offices in New York, Hong Kong and Shanghai, provides aircraft leasing and lease management services.
The company said it had executed contracts and letters of intent for the purchase of over 50 aircraft since its launch in May 2010.
The Avolon fleet, comprising Airbus A320s, Boeing 737NGs and Airbus A330s, is valued at in excess of $2 billion, said a statement from the company.
Flydubai said this latest deal, in addition to the recently announced deals with General Electric Capital Aviation Services (GECAS) and Babcock Brown Asset Management (BBAM) to finance 9 aircrafts, secures the carrier’s needs till 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.”
John Higgins, Avolon President and Chief Commercial Officer, said, “We are delighted that flydubai selected Avolon as a partner in its fleet development plans. A key element of Avolon’s strategy is to identify airlines that are long-term 'winners' and to back them in scale.'
Flydubai, which began commercial flights on June 1, 2009, has since grown to a fleet of 9 B737-800NG aircrafts serving 24 destinations within a 5-hour flight radius of Dubai, said Al Ghaith.
'Four more aircraft are due to be received before end of this 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,' he added.