Flydubai secures finance for 2 aircraft

Flydubai has secured financing for its first two aircraft deliveries of 2012, the company's chief executive officer said yesterday. The low-budget carrier has signed a deal with MC Aviation Partners (MCAP) for two eight-year sale and leaseback contracts worth $170 million (Dh623.7 million) at list prices, Gaith Al Gaith told reporters at the Dubai Airshow. Flydubai is interested in both Boeing's 737 MAX and the Airbus A320neo, but Al Gaith said flydubai had to concentrate on consolidating its existing operations, adding that the carrier will decide in the near future whether to place new aircraft orders. "We have been overwhelmed with interest for our aircraft deliveries next year," Al Gaith said. "We had many orders for each aircraft, which is an enviable position to be in, but having those options makes us confident that we have the right partner in MCAP," he added. Flydubai, which has a fleet of 20 aircraft and flies to 46 destinations, will get its first two aircraft deliveries of the new year in either January or February. Al Gaith says he expects flydubai to receive between five and seven new aircraft deliveries next year. "Flydubai currently leases all of its in-service fleet. They would be appealing to leasing companies [for financing] for a few reasons: they fly 737-800 aircraft, the most sought-after aircraft by lessors; and they are one of the few Middle East carriers to fly these aircraft," said Paul Sheridan, head of risk advisory at Ascend Worldwide. According to Sheridan, lessors looking to get exposure to aviation in the Middle East would prefer to get exposure via aircraft like the 737-800 and the A320-200. Flydubai also announced two maintenance support deals at the Dubai Airshow yesterday with Abu Dhabi Aircraft Technologies and US aerospace services provider Honeywell, worth $54 million and $20 million respectively.