Dubai’s flydubai signs $320 million aicraft deals

* Sale and leaseback deals on four Boeing aircraft

* Says deal serves aircraft needs until December 2011

DUBAI, Nov 3 (BestGrowthStock) – Low-cost Dubai carrier flydubai has
signed sale and leaseback deals on four Boeing (BA.N: ) 737-800 NG
aircraft valued at $320 million at list prices with Dublin-based
aircraft leasing company Avolon.

The deal follows agreements with BBAM and GE Capital
Aviation Services to finance nine aircraft, and brings the total
value of deals in the past five weeks to $1 billion, the company
said on Wednesday.

“Our next 13 aircraft are now completely financed, which
takes us through to December of next year,” chief executive
Ghaith al-Ghaith said. “This is a further indication that the
international financing community views flydubai and Dubai
itself as a good investment for the future.”

A spat between global airlines over export credit agencies
financing Gulf Arab carriers has escalated over the past month
with leading airlines calling on Europe and the United States
to implement a 20 percent export financing cap. [ID:nLDE69C1RN]

U.S. and European airlines say Gulf rivals get subsidies and
export credits allowing them to grow at a breakneck pace and
take market share, which airlines such as Dubai’s Emirates
[EMIRA.UL] deny.

In June, Dubai announced plans to more than double
flydubai’s capital to 500 million dirhams ($136 million).

Flydubai, which started commercial flights in June 2009,
competes with airlines including United Arab Emirates-based Air
Arabia (AIRA.DU: ) and Kuwait’s Jazeera Airways (JAZK.KW: ).

The airline operates a fleet of nine Boeing 737-800NG
aircraft, servicing 24 destinations within a five-hour flight
radius from Dubai. It expects to receive four more aircraft —
new Boeing Sky Interior 737-800NG — before the end of the year.
(Reporting by Tamara Walid; Editing by Dan Lalor)
($1 = 3.672 UAE dirhams)

Dubai’s flydubai signs $320 million aicraft deals