(MENAFN- Khaleej Times) The fleet size of Dubai's low-cost airline flydubai reached 26 with the latest delivery and the carrier will get two more aircraft by the end of 2012, according to the company.
The fresh delivery is 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).
The airline has grown its fleet to 26 airplanes in less than four years and with the opening up of new financial instruments to help pay for the balance of its 22 Boeing 737-800s, the airline is de-risking its financial obligations and paving the way for a more robust balance sheet, according to an aviation analyst.
"This will continue to increase attractiveness to investors and lenders and it will also augment flydubai's next phase of growth - particularly when the time comes to purchase new airplanes," Saj Ahmed, chief analayst at London-based StrategicAero Research, told Khaleej Times.
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. Moreover, it represents a first financing for Ex-Im Bank of Boeing aircraft to flydubai.
"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," flydubai chief executive officer Ghaith Al Ghaith, said.
Dubai's reputation is firmly established on the world stage as a popular tourist destination, a financial centre and a trade and logistics hub, Al Ghaith said, adding: "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 us as an airline and we intend to fully capitalise on this."
"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," he added.
This year has also witnessed significant network expansion with the addition of six new routes to date (Bucharest, Sana'a, Basra, Najaf, Bishkek and Taif) and a further two to follow: Skopje, the capital of Macedonia is scheduled to launch on 18 October and Tabuk, Saudi Arabia on November 7.
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