Tuesday, Nov 15, 2011
--Deal includes 2 eight-year sale and leaseback contracts
--Also signs MRO contracts worth $54M with Abu Dhabi Aircraft Technologies
(Adds new maintenance contract with ADAT in paragraphs 6-8)
DUBAI (Zawya Dow Jones)--Dubai's low-cost carrier flydubai on Tuesday signed a deal worth $170 million at list prices with MC Aviation Partners, or MCAP, to finance two aircraft scheduled for delivery in 2012.
The deal includes two, eight-year sale and leaseback contracts, flydubai Chief Executive Officer Gaith Al Gaith said at a press conference at the Dubai Airshow.
"We have been overwhelmed with interest for our aircraft deliveries next year," Al Gaith said. "We had many offers for each aircraft."
MCAP is the aircraft leasing and trading arm of Mitsubishi Corporation.
Al Gaith said in an interview Monday the carrier would look to finance five to seven aircraft it will be receiving next year, and that its fleet of Boeing 737-800NGs is easy to find finance for as its "one of the most sought-after" aircraft.
Flydubai also Tuesday signed two fleet maintenance, repair, and overhaul--or MRO--contracts worth $54 million with Abu Dhabi Aircraft Technologies, or ADAT, a unit of Abu Dhabi government-owned company Mubadala Development Co.
The first contract, through which flydubai is outsourcing to ADAT maintenance and components support and management, will save the carrier $35 million over the next five years. "Flydubai will benefit from reduced maintenance costs and increased capital liquidity, as a result of having to hold less spare parts," a company statement said.
The Integrated Component Support agreement covers repair management, forward component exchange, and will also see ADAT provide total material support to flydubai's entire fleet. Flydubai has 20 Boeing 737-800 NGs, with 30 due to be delivered by the end of 2016.
Under the second contract, ADAT will complete 18 C checks, a type of aircraft maintenance check, on flydubai aircraft throughout 2012.
-By Nour Malas, Dow Jones Newswires; +971502890223, nour.malas@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
15-11-11 1051GMT
