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Flydubai finalises record 737MAX deal and puts squeeze on rivals

Posted 21 December 2017 · Add Comment

Boeing and Flydubai have finalised the deal of 175 Boeing737 MAX airplanes in the largest single-aisle jet order in Middle East history. The contract – which includes options for an additional 50 jets – is valued at $27 billion at current list prices.

 The order was announced at last month’s Dubai Airshow, and allows Flydubai to take advantage of the 737 MAX family's flexibility and commonality, while using the unique size and range of the MAX 8, MAX 9 and MAX 10 to suit its growing network.
"I am delighted that we end 2017 with today's announcement representing the next chapter in flydubai's success story," said Ghaith Al Ghaith, Flydubai’s CEO. "This is our largest order in our eight-year history and our third order with Boeing whose aircraft have given us the ability to carry 44 million passengers since we began operations. With up to 296 aircraft on order, we have become one of the world's top ten airlines in terms of order backlog and we look forward to continuing to enhance the connectivity of Dubai's aviation hub."
Industry analyst Saj Ahmed said the deal throws down a gauntlet to rivals such as Sharjah’s Air Arabia. “it’s a positive statement of intent. Intent to dominate the GCC market my proliferating routes faster than the competition while driving down costs to enable fares to stay attractive to new and existing customers,” he said.
“Competitors like Air Arabia and others have sat idly on the side-lines for too long. Serious questions about Flydubai’s rivals dithering on fleet replacements mean that they are now not in a position to robustly provide effective competition since they will be operating older, less fuel efficient fleets. Air Arabia has committed to only a handful of A321neo’s – this is simply not enough when you look at the size of aggressive expansion that Flydubai is setting up for. Air Arabia and other GCC LCC’s are vying for the “me too” status behind Flydubai.”
Flydubai is developing closer ties with its sister-company Emirates and will move to Terminal 3 ahead of an eventual move to Dubai World Central’s Al Maktoum airport.
 

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