flydubai secures USD750m of aircraft financing from GECAS and BBAM
flydubai announced (22-Sep-2010) it has secured aircraft financing worth more than USD750 million in agreements with GECAS and BBAM. The financing will cover the next nine aircraft flydubai is due to receive and secures all the airline’s financing requirements until Jun-2011. Both deals are eight-year term sale and leaseback agreements. The agreement with GECAS is for six aircraft, taking the total number of flydubai aircraft GECAS finances to 10, while BBAM are adding another three to make their total commitment six. [more]
flydubai: “These deals are very significant for flydubai because this committed money secures the next nine aircraft we are due to receive and mean all our financing requirements until June next year are taken care of. We already have agreements in place with both GECAS and BBAM and it is clear from their willingness to enter into further ties with us that they have been pleased with what flydubai has delivered so far. These are some of the largest aircraft financers in the world and their faith in flydubai is a huge endorsement of us and our success since our launch. When we went out to the markets this time to seek financing for our aircraft we were overwhelmed by the response. At the end of the day we received offers for far more aircraft than we needed to finance, which is a very nice position for a young and ambitious airline to be in. I believe this is a reflection not only of our position but also of the confidence the financial community around the world has in Dubai,” Ghaith Al Ghaith, CEO. Source: Company Statement, 22-Sep-2010.