flydubai receives USD76m capital infusion; paid-up capital doubles
flydubai will receive fresh government funding of AED280 million (USD76.2 million), raising its capital to AED500 million (USD136.1 million), following a decree by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and ruler of Dubai (Reuters/Gulf News/WAM/khaleejtimes, 07-Jun-2010). The full amount is to be paid by the Dubai Government and will more than double the company's capital, with the new law amending a preceding law which had set up flydubai with a capital of AED220 million (USD59.9 million). flydubai CEO, Gaith Al Gaith, stated the increased capital would go towards the airline's expansion, although specific details were not discussed. The LCC, established by the Government in Mar-2008, commenced commercial operations on 01-Jun-2009 and has carried more than 750,000 passengers during its first year of operation. The carrier operates to 21 destinations (17 current operations, with the remaining five to follow later in 2010) and, over the next few months, the carrier will receive five new B737-800 aircraft.
flydubai: "We will ensure flydubai continues to expand in line with our stated objectives and we will do our best to ensure the success of our first year continues ... The real plan is that we want to grow from now until 2015 with 50 aircraft and cover the region within a 4.5-hour radius. We want to make travel from the UAE to the region faster and easier. We will continue to challenge ourselves," Gaith Al Gaith, CEO. Source: Gulf News, 07-Jun-2010.