Saudi Arabia's budget airline Flyadeal is weighing up a new order of at least 50 narrow-body jets from either Boeing or its current supplier Airbus, as it seeks to quadruple its fleet to more than 100 aircraft by 2030.
The all-Airbus operator could decide on additional aircraft as soon as next year, Con Korfiatis, chief executive of Flyadeal, told The National on the sidelines of the Global Aerospace Summit in Abu Dhabi.
The state-owned airline is considering the bigger single-aisle models, including the Airbus A321 Neo and A321LR, Mr Korfiatis said on Wednesday. He added that the airline will also decide on the Boeing 737 Max and more of the A320 Neos, as it seeks to expand its international route network.
“When we're ready to, and we know what we want to do beyond the current order book, we will go out with a campaign again and let's see where it takes us,” Mr Korfiatis said.
Flyadeal's current order book of 30 A320 Neos will cover its existing requirements through to 2025, and it is studying the types of aircraft it will need to support growth and the replacement of older leased jets. The order was announced at the Paris Airshow in 2019, with deliveries starting in 2021 over five years.
“We've got an order book going all the way to 2025, so we're looking at what we're going to do beyond,” he said at the aerospace summit at Emirates Palace.
“We will need more aircraft, it's just a matter of how many more and when do we want them, so that analysis is going on right now.
“A larger narrow-body would make sense for us — there's space in our fleet for an A321-type aircraft. We've got 186 seats on an A320 and getting that up to 240 seats on an A321 reduces our seat cost further — and that means we can pass on more savings to our customers.”
Opting for Airbus jets on the new Flyadeal order is not a “preordained” outcome, the chief executive said.
“At whatever point we've got an idea of how many more aircraft and what size we want them to be, we will run a campaign," he said. "It's not necessarily more Airbus aircraft because with the fleet size we will have, we would already have economies of scale as a group."
“So we would run a campaign and see how the OEMs [original equipment manufacturers] present themselves.”
In 2019, Flyadeal scrapped its commitment to buy 50 Boeing 737 Max jets in favour of an all-Airbus fleet. The 737 Max is a potential contender as the airline studies its fleet growth needs beyond 2025. The aircraft has resumed service after a two-year worldwide safety ban on the model after two fatal crashes was lifted.
“They've got the Max back up and running and they've got different size and range variants, so they have competitive products,” Mr Korfiatis said.
Could wide-body aircraft work on Flyadeal's low-cost business model? The executive said it is under consideration and that if there is a case for it, then it would be a “small sub-fleet”.
“The backbone of this model and its success is very much driven by the economics that a high-density narrow-body provides,” he said.
“The initial next steps would be, yes, more A320s even, but larger narrow-bodies and narrow-bodies with longer range as well to get us further away.”
The airline expects to expand its fleet to at least 100 jets and carry about 50 million passengers by 2030. This is in line with Saudi Arabia's Vision 2030 to diversify the economy from oil, Mr Korfiatis said, as the kingdom seeks to develop its air transportation sector and attract more tourists.
The future fleet expansion size is on the “conservative side” and could be even bigger as the hub grows, he said.
Of the planned 100 jets by 2030, 50 are expected by 2025, he said, underscoring the requirement for the new plane order.
Flyadeal's current fleet comprises 11 A320 Neos and 11 A320 Ceos with 22 jets in total.
The airline is bullish about a rebound in travel demand this year. It forecasts it will carry six to seven million passengers in 2022, up from just over four million in 2021, according to Mr Korfiatis.
Flyadeal, which operates 27 routes, earlier this month announced plans to expand its international network with new routes to Tbilisi and Batumi in Georgia, Azerbaijan's Baku, Amman in Jordan and Sharm El Sheikh in Egypt.
“Over time, we will operate to maybe 100 destinations, so clearly at some point the number of international destinations on the map will be more significant than what it is now,” Mr Korfiatis said.
Flyadeal is currently at 130 per cent of airline seat kilometres, a measure of a flight's passenger-carrying capacity, as compared with February 2020, before the onset of the pandemic, he said.
“That's not a common story, it's partly because we're still a very young airline and there's so much uncharted waters to do, but we do live in an environment where the world is still not our oyster,” he said, pointing to lingering pandemic-related restrictions in some areas.
Higher oil prices are a challenge, but the low-cost airline has not imposed a fuel surcharge as customers are price-sensitive and the airline is absorbing the higher fuel cost, Mr Korfiatis said.
Asked about how Flyadeal would fit into Saudi Arabia's plans to establish a new carrier, he said: "It's a case of a broader ecosystem working together to deliver the national objectives" of growth.
During the pandemic, Flyadeal retained all its employees and aircraft and did not seek out government support. It expects to be "in better shape" in 2022 with new routes and aircraft deliveries, Mr Korfiatis said.
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
BACK%20TO%20ALEXANDRIA
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What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
The specs
Engine: 1.6-litre 4-cyl turbo
Power: 217hp at 5,750rpm
Torque: 300Nm at 1,900rpm
Transmission: eight-speed auto
Price: from Dh130,000
On sale: now
SERIES SCHEDULE
First Test, Galle International Stadium
July 26-30
Second Test, Sinhalese Sports Club Ground
August 3-7
Third Test, Pallekele International Cricket Stadium
August 12-16
First ODI, Rangiri Dambulla International Stadium
August 20
Second ODI, Pallekele International Cricket Stadium
August 24
Third ODI, Pallekele International Cricket Stadium
August 27
Fourth ODI, R Premadasa Stadium
August 31
Fifth ODI, R Premadasa Stadium
September 3
T20, R Premadasa Stadium
September 6
Company%20Profile
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The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Company%20profile
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Venom
Director: Ruben Fleischer
Cast: Tom Hardy, Michelle Williams, Riz Ahmed
Rating: 1.5/5
Company profile
Date started: December 24, 2018
Founders: Omer Gurel, chief executive and co-founder and Edebali Sener, co-founder and chief technology officer
Based: Dubai Media City
Number of employees: 42 (34 in Dubai and a tech team of eight in Ankara, Turkey)
Sector: ConsumerTech and FinTech
Cashflow: Almost $1 million a year
Funding: Series A funding of $2.5m with Series B plans for May 2020
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
Meydan race card
6.30pm: Baniyas (PA) Group 2 Dh125,000 (Dirt) 1,400m
7.05pm: Maiden (TB) Dh165,000 (D) 1,200m
7.40pm: Maiden (TB) Dh165,000 (D) 1,400m
8.15pm: Handicap (TB) Dh170,000 (D) 1,900m
8.50pm: Rated Conditions (TB) Dh240,000 (D) 1,600m
9.25pm: Handicap (TB) Dh175,000 (D)1,200m
10pm: Handicap (TB) Dh165,000 (D) 1,400m
Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
Race 3
Produced: Salman Khan Films and Tips Films
Director: Remo D’Souza
Cast: Salman Khan, Anil Kapoor, Jacqueline Fernandez, Bobby Deol, Daisy Shah, Saqib Salem
Rating: 2.5 stars
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
Frankenstein in Baghdad
Ahmed Saadawi
Penguin Press
COMPANY%20PROFILE
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More from Neighbourhood Watch:
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
TOP%2010%20MOST%20POLLUTED%20CITIES
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'Operation Mincemeat'
Director: John Madden
Cast: Colin Firth, Matthew Macfayden, Kelly Macdonald and Penelope Wilton
Rating: 4/5
MISSION: IMPOSSIBLE – FINAL RECKONING
Director: Christopher McQuarrie
Starring: Tom Cruise, Hayley Atwell, Simon Pegg
Rating: 4/5
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
Adele: The Stories Behind The Songs
Caroline Sullivan
Carlton Books
The biog
Place of birth: Kalba
Family: Mother of eight children and has 10 grandchildren
Favourite traditional dish: Al Harees, a slow cooked porridge-like dish made from boiled cracked or coarsely ground wheat mixed with meat or chicken
Favourite book: My early life by Sheikh Dr Sultan bin Muhammad Al Qasimi, the Ruler of Sharjah
Favourite quote: By Sheikh Zayed, the UAE's Founding Father, “Those who have no past will have no present or future.”
The Disaster Artist
Director: James Franco
Starring: James Franco, Dave Franco, Seth Rogan
Four stars
OPTA'S PREDICTED TABLE
1. Liverpool 101 points
2. Manchester City 80
3. Leicester 67
4. Chelsea 63
5. Manchester United 61
6. Tottenham 58
7. Wolves 56
8. Arsenal 56
9. Sheffield United 55
10. Everton 50
11. Burnley 49
12. Crystal Palace 49
13. Newcastle 46
14. Southampton 44
15. West Ham 39
16. Brighton 37
17. Watford 36
18. Bournemouth 36
19. Aston Villa 32
20. Norwich City 29
KEY DEVELOPMENTS IN MARITIME DISPUTE
2000: Israel withdraws from Lebanon after nearly 30 years without an officially demarcated border. The UN establishes the Blue Line to act as the frontier.
2007: Lebanon and Cyprus define their respective exclusive economic zones to facilitate oil and gas exploration. Israel uses this to define its EEZ with Cyprus
2011: Lebanon disputes Israeli-proposed line and submits documents to UN showing different EEZ. Cyprus offers to mediate without much progress.
2018: Lebanon signs first offshore oil and gas licencing deal with consortium of France’s Total, Italy’s Eni and Russia’s Novatek.
2018-2019: US seeks to mediate between Israel and Lebanon to prevent clashes over oil and gas resources.
The Gandhi Murder
- 71 - Years since the death of MK Gandhi, also christened India's Father of the Nation
- 34 - Nationalities featured in the film The Gandhi Murder
- 7 - million dollars, the film's budget
The biog
Name: Marie Byrne
Nationality: Irish
Favourite film: The Shawshank Redemption
Book: Seagull by Jonathan Livingston
Life lesson: A person is not old until regret takes the place of their dreams
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
BRAZIL%20SQUAD
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