flydubai to diversify finance sources in 2012
flydubai stated it plans to diversify its sources of finance beyond sale and leaseback agreements when it takes new deliveries in 2012, according to CEO Ghaith Al Ghaith (Aviation Exchange (Ascend), 19-May-2011). The LCC said it is specifically interested in securing ECA support from the Ex-Im Bank for seven Boeing 737-800s it expects to receive in 2012, once it is eligible to take advantage of the facility. The CEO said he would continue to tap into Islamic funding provided that it remains competitive with other sources. The LCC currently has 16 aircraft in service, all of which are on operating leases, from companies including BBAM, GECAS, Avolon and Dubai Islamic Bank. Operating leases have been secured on leases for the remainder of 2011, with Avolon providing four more aircraft, and GECAS, MC Aviation Partners and Macquarie Airfinance a further one each. Mr Al Ghaith noted that it’s common for start-up LCCs to lease the majority of its fleet, which frees up capital to use in other areas of the business.
flydubai: "We need to source funding equivalent to around half a billion US dollars next year . When we put out our last RFP (request for proposal) we received offers for more than 80 aircraft, so I am confident we will receive an equally positive response this time." Ghaith Al-Ghaith, CEO. Source: Aviation Exchange (Ascend), 19-May-2011.