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Avolon Provides Financing Solution To Flydubai

by Lorys Charalambous,, Cyprus

09 November 2010

Flydubai, Dubai's first low cost airline, on November 3 announced sale and leaseback agreements on four Boeing 737-800 NG aircraft worth USD320m at list prices with leasing group Avolon.

In addition to recently announced deals with GECAS and BBAM to finance nine aircraft, this latest deal secures Flydubai's needs through to December 2011, according to the company.

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.”

“This deal for four Boeing 737-800NG aircraft comes just five weeks after our announcement of sale and leaseback agreements for nine aircraft with GECAS and BBAM and takes the total value of the financing we have secured during that period to more than USD1bn. Our next 13 aircraft are now completely financed, which takes us through to December of next year.”

“This is a further indication that the international financing community views Flydubai and Dubai itself as a good investment for the future.”

Since launch in May 2010, Avolon has executed contracts and letters of intent for the purchase of over 50 aircraft. The Avalon fleet, comprising of Airbus A320s, Boeing 737NGs and Airbus A330s, is valued at in excess of USD2bn.

John Higgins, Avolon President and Chief Commercial Officer, commented:

“We are delighted that Flydubai has 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. Our team are uniquely experienced in structuring large and innovative sale and lease-back financing and we look forward to further developing our relationship with Flydubai and our presence in the Gulf over the coming years.”

Flydubai began commercial flights on June 1, 2009. Since then the airline has grown its fleet of nine B737-800NG aircraft operating to 24 destinations within a five-hour flight radius of Dubai. Four more aircraft are due to be received before the end of this calendar year. These will be the new Boeing Sky Interor 737-800NG which will be fitted with the revolutionary new type of in-flight entertainment system from Lumexis, as announced earlier this year.

TAGS: aviation

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