flydubai takes delivery of first EX-IM Bank financed aircraft
flydubai has taken delivery of the first of three Boeing 737-800NG aircraft financed through a $117.5 million loan agreement with the Export-Import Bank of the United States (Ex-Im Bank).
Over the last three years since flydubai launched it has successfully financed its fleet primarily through sale and leaseback agreements and market appetite for similar funding to flydubai remains strong. This deal is an endorsement that flydubai has reached a level of maturity and size that other financing sources can be accessed.
flydubai’s CEO, Ghaith Al Ghaith, said: “This landmark agreement with Ex-Im Bank is further proof of flydubai’s continued achievements. In our short history we have already achieved a great deal but what is truly exciting for us is that we have only just begun.
“Dubai’s reputation is firmly established on the world stage as a popular tourist destination, a financial centre and a trade and logistics hub. Its visionary decision to invest in becoming a leading global aviation hub and the fact that there is a population of over 2.5 billion within our geographic reach is a scenario that creates tremendous opportunity for
“The Ex-Im Bank agreement, as important as it is, ultimately represents just another step on our journey. I can also state with conviction that as we grow we remain absolutely committed to delivering an experience defined by affordable fares across our network and giving our customers as much choice as possible.”
Analyst Saj Ahmad commented: "While flydubai has been unlocking access to capital via sale and lease back deals for much of its 737-800 fleet, this new round of Ex-Im backed financing demonstrates that the airline is wisely selecting as many financial instruments as it can to procure more airplanes and mitigate risks against its existing capital requirements.
"Add to that the fact that the carrier has seen a year on year rise on the number of flights it operates by a whopping 41%, you can see why Ex Im lined up financing for the low cost airline."
Ahmad concluded: "flydubai is quickly transforming itself into an investors favourite and we can certainly expect them to utilise a raft of innovative financing measures when the time comes for them to place a new order for airplanes, which is expected to be for the 737MAX, and specifically the 737 MAX-8".