Flydubai to expand fleet by 6 aircraft

Flydubai is seeking to raise finance from the US-based Export-Import (Ex-Im) Bank to fund three Boeing 737-800 aircraft — worth $253.2 million (Dh929.75 million) at list prices — due for delivery in the last quarter of 2012. The budget carrier has issued requests for proposals (RFP) for the aircraft. Of the six planes due to join the carrier's fleet this year, flydubai has secured financing for the first two, the carrier announced at the Dubai Airshow in Nov-ember. The company has also signed a deal with MC Aviation Partners for two eight-year sale and leaseback contracts worth $170 million. Flydubai also issued an RFP in May 2011 targeted at sale and leaseback of seven 737-800s. "We have traditionally sought sale and leaseback options, as we develop and mature," a flydubai spokesperson told Gulf News in an emailed statement, adding that the carrier has "issued RFPs for financing for three aircraft" due to be delivered in fourth-quarter 2012. "We are seeking to div-ersify our options, and as a result have received a number of favourable responses. We are currently assessing these offers and will announce contract signings in due course," said the spokesperson. The carrier signed an agreement for 50 Boeing 737-800NGs at the Farnborough Airshow in 2008, worth $3.74 billion at list prices. Of these, 22 planes have joined the fleet and the remaining 28 are due for delivery by 2016 — just about a year before the launch of the more efficient Boeing 737 MAX. In order to continue its expansion, flydubai is in talks with Boeing and Airbus for more aircraft orders as chief executive Ghaith Al Ghaith recently said, adding that the airline would place its next order in a few years. Breaking even "We are very much interested in both the 737 MAX and the A320neo. Both of these developments will be critical to the low-cost segment in terms of lowering operating costs, especially related to fuel, and passing those savings on to passengers," Al Ghaith reportedly said, adding that aircraft such as the 737 MAX and A320neo have the "ability to support" the carrier's market position. Flying to over 45 destinations, flydubai is aiming to break even this year, Al Ghaith recently said. "We said we will make money in 2012, and we are still on course to make money," he reportedly said late last year, calling fuel a "common cost" for all airlines. But the carrier last week said it had no immediate intentions to raise ticket prices even as the oil price peaked around $125 during the week. "We are not immune to price fluctuations but do take every step we can to keep our fares as low as possible to encourage more people to fly more often," the airline spokesperson told Gulf News, adding that the carrier constantly monitors its fares.