Flydubai agrees sale and leaseback deal on 737

Deal lasts eight years; plane costs US $80 million to buy outright.
Sale and leaseback deals help companies conserve cash.
Sale and leaseback deals help companies conserve cash.

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Flydubai, Dubai’s state-owned low cost carrier, has agreed a sale and leaseback deal for a 737 plane due for delivery in December.

Under the agreement, the plane has been sold to aircraft leasing company, MC Aviation Partners, which will lease it to flydubai for eight years.

The plane, a 737-800NG, would cost around US $80 million at list price.

It will be fitted with the new Boeing Sky Interior and flydubai’s new in-flight entertainment system, to be delivered in 2011.

Ghaith Al Ghaith, CEO of flydubai, said: “We are pleased to add MCAP to our existing group of leasing companies, both local and international. Like flydubai, MCAP is a young, ambitious and dynamic company and we look forward to developing a long and mutually beneficial relationship with them."

Tatsuo Sato, CEO of MC Aviation Partners Inc., said: “We are pleased to announce this transaction with flydubai, which has successfully laid the foundation for a valuable partnership. We are delighted to work with flydubai, the Gulf’s leading airline, and expect this transaction to enhance MCAP’s presence in the Middle East.”

Flydubai has recently retired two planes acquired in May 2009. The move means that none of the airline’s planes are older than 22 months.

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