Flydubai Gets $172m Financing

The amount, secured from a unit of Standard Chartered Bank, will be used to buy two new aircraft.

Dubai-based low-cost airline Flydubai announced that it has signed an agreement with a subsidiary of Standard Chartered Bank to receive financing of $172 million to buy two Boeing 737-800NG aircraft.

The eight-year sale and leaseback agreement with Pembroke follows the request for proposal (RFP) issued by Flydubai for its 2012 aircraft funding requirements, the carrier said in a statement.

The two new aircraft will join the airline’s fleet in June and July.

“The enthusiastic response to our RFP, which was once again over-subscribed, is a positive start to our fourth year of operations,” Flydubai’s CEO, Ghaith Al Ghaith, said in the statement.

“This is the first such agreement we have made with Standard Chartered’s subsidiary, Pembroke, and underpins the continued confidence lessors have in us.

“We have expanded rapidly to become the second largest carrier operating from Dubai International Airport,” he added.

“The UAE is one of Standard Chartered’s top five markets globally and we are committed to helping our clients expand their businesses in the UAE and globally,” said Jonathan Morris, CEO, Standard Chartered UAE.

Flydubai, which operates to over 45 destinations, plans to add up to five destinations this year, Ghaith recently told reporters. He also said that the airline, which began operations in 2009, hopes to make its first profit this year.