Dubai: flydubai has signed a sale and leaseback agreement with Standard Chartered for five new Boeing 737 Max aircraft.
Four aircraft were delivered between March and May 2022 with the fifth aircraft scheduled to arrive before the end of the first half of 2022. The deal was financed and arranged by the London-based bank.
A leaseback is an arrangement in which the company that sells an asset can lease back that same asset from the purchaser.
“The transaction will support the future growth of the airline’s fleet and highlights the strong and long-standing relationship between flydubai and Standard Chartered,” said the budget airline in a statement.
“We are pleased to have received Standard Chartered’s support on this transaction which builds on previous aircraft financing and leasing agreements,” said Ghaith Al Ghaith, CEO of flydubai.
“We continue to diversify our sources of funding and attract reliable partners in support of our future growth plans - we look forward to working with Standard Chartered again in the future,” said Al Ghaith.
flydubai, which took delivery of 11 Boeing 737 Max jets last year, will add 23 more of those airplanes to its fleet in 2022, said Al Ghaith during a virtual event last week.
The airline, which currently has around 60 aircraft in its fleet, will continue to look at airplanes available in the market to expand its fleet.
“Standard Chartered has had a long-standing relationship with flydubai and the Investment Corporation of Dubai across multiple businesses,” said Rola Abu Manneh, CEO, Standard Chartered UAE. “This transaction demonstrates the Bank’s continued commitment to the airline and the Government of Dubai’s vision for the wide spectrum of sectors that support Dubai’s dynamic economy.”