Flydubai Secures $228m Loan To Finance Six Jets

Budget airline flydubai has secured a $228 million loan from regional and international banks to finance the purchase of six new Boeing jets, the carrier said in a statement on Wednesday.

The financing is for two recently delivered Boeing 737-800 aircraft, one more scheduled for delivery by the end of the year and three scheduled to be delivered in the second half of 2014, flydubai said.

The loan is structured as a finance lease with quarterly loan repayments over a 10 to 12 year term.

Five banks arranged the financing, including German lender NordLB, Crédit Agricole and Gulf International Bank.

The Dubai government-owned airline has a fleet of 32 Boeing 737-800 aircraft, from its initial order of 50 jets; due to be fulfilled by 2015.

The airline is in talks with Boeing and Airbus for a 50-plane order, the airline’s chairman had said in February. The order is widely expected to be announced at the Dubai Air Show later this month.