Flydubai seals $320m finance deal

A US$320 million (Dh1.17bn) aircraft financing deal has been sealed by flydubai from Avolon, a Dublin-based aircraft leasing firm, the carrier said today.

The four Boeing 737-800 aircraft, part of an order for 50 Boeing planes flydubai made in 2008, will be financed in a sale-and-leaseback arrangement.

The deal brings the value of the Dubai-based budget airline's financing to more than $1bn and puts it on course for continued expansion, after opening two dozen routes in its first 16 months of service.

This is a further indication that the international financing community views flydubai and Dubai itself as a good investment," said Ghaith al Ghaith, the chief executive of flydubai.

The arrangement with Avolon, an upstart leasing firm created in May, completes a string of financing deals that secures the Dubai-based budget airline's financing requirements until December next year. It follows recently announced deals with GECAS and BBAM to finance nine aircraft. Flydubai currently operates a fleet of nine B737-800 aircraft operating to 24 destinations.

igale@thenational.ae