Financing Deal Struck Between flydubai And Avalon Worth $320 Million

Dubai’s first low cost airline flydubai said Wednesday it has reached sale and leaseback agreements with aircraft leasing group Avolon on four Boeing 737-800NG aircraft worth $320 million at list prices.

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In addition to recently announced deals with GECAS and BBAM to finance nine aircraft, this latest deal secures flydubai’s needs through to December 2011.

“Like flydubai, Avolon is a young, ambitious, dynamic company and we look forward to a long and successful relationship with them,” said
Ghaith Al Ghaith, CEO of flydubai. “This deal for four Boeing 737-800NG aircraft comes just five weeks after our announcement of sale and leaseback agreements for nine aircraft with GECAS and BBAM and takes the total value of the financing we have secured during that period to more than US$1 billion. Our next 13 aircraft are now completely financed, which takes us through to December of next year.”

Since launch in May, 2010, Avolon has executed contracts and letters of intent for the purchase of over 50 aircraft. The Avolon fleet, comprises Airbus A320s, Boeing 737NGs and Airbus A330s, valued at in excess of $2 billion.

“A key element of Avolon’s strategy is to identify airlines that are long-term "winners" and to back them in scale," said John Higgins, Avolon President and Chief Commercial Officer. "Our team are uniquely experienced in structuring large and innovative sale and lease-back financings and we look forward to further developing our relationship with flydubai and our presence in the Gulf over the coming years."

FMI: www.flydubai.com, www.avalonaircraft.com