flydubai announces deals worth Dh660m

Dubai: Flydubai, UAE’s second budget carrier, announced financing deals worth $180 million (Dh660 million) at the Dubai Airshow. 

The financing covers two aircraft that the airline received in March on lease. The six aircraft it will have by the end of the year will be permanently financed after this deal.

The first deal with Mcquarie AirFrance, a global aircraft leasing company, is worth $80 million and a medium term sale and leaseback agreement. The other deal, with Dubai Islamic Bank, is the first for the airline from within the country and also the first Islamic financing deal.

A five-year deal, also worth $80 million, at list price, is an Ijara agreement. “With these two agreements we have now succeeded in securing backing from some of the biggest names in aircraft financing from home and abroad,” Gaith Al Gaith, chief executive of flydubai said

The carrier would be taking deliveries of seven aircraft next year. “Most of them are already financed and we will be leasing them,” Al Gaith said.

He said the next financing would have to be arranged in October 2010 and it has “plenty of time” to arrange it.

The airline will continue to expand its network with more destinations within a 4.5-hour radius from its base at Dubai International Airport.