flydubai signs deal to purchase two aircrafts

Business Materials 30 May 2012 14:25 (UTC +04:00)

Azerbaijan, Baku, May 30 / Trend /

flydubai, Dubai's innovative low-cost airline, has signed with Pembroke, a wholly owned subsidiary of Standard Chartered Bank specialising in aircraft leasing, financing and management services, to finance two Boeing 737-800NG aircraft, the company said in its press release on Wednesday.

The eight-year sale and leaseback agreement represents financing of USD 172 million in list prices and follows the request for proposal (RFP) issued by flydubai for its 2012 aircraft funding requirements. The two new aircraft will enter the flydubai fleet in June and July, increasing the low-cost carrier's capacity, while supporting network growth across the GCC, Middle East, North Africa, Indian Sub-Continent, Asia, and Central & Eastern Europe.

"The enthusiastic response to our RFP, which was once again over-subscribed, is a positive start to our fourth year of operations. This is the first such agreement we have made with Standard Chartered's subsidiary, Pembroke, and underpins the continued confidence lessors have in us as we drive growth by increasing capacity and connectivity. We have expanded rapidly to become the second largest carrier operating from Dubai International Airport and growing our fleet allows us to serve more passengers around the region," flydubai's CEO, Ghaith Al Ghaith, said.

flydubai has a simple model where customers only pay for services they want to receive. Fares are inclusive of all taxes plus one piece of hand luggage weighing up to 7kg and one small laptop bag or hand bag. Checked baggage starts at AED50 for 20kgs. A seat with extra legroom costs AED100.

Established in March 2008, flydubai is Dubai's first low-cost airline and the fastest growing start-up airline in the world. Since commencing operations in June 2009, the airline has established an operational route network of more than 45 destinations across GCC, Middle East, North Africa, Indian Sub-Continent, Asia and the fringes of Europe and has built up a fleet of 23 aircraft. Owned by the government of Dubai, the low-cost carrier supports the city's commercial and tourism sectors by serving all travellers and providing them with affordable air links to a range of destinations.