Low-cost carrier Flydubai is in multibillion dollar talks to buy “at least 100” new passenger jets in the coming months as it looks to renew its current book set to expire in 2023, the airline’s chief executive said.
"We are definitely in the market for a new order," flydubai chief executive Ghaith Al Ghaith said in an interview with The National at Dubai Air Show. "We are generally always in talks with [Boeing and Airbus] and we are in intense talks with them now."
The Dubai-based airline, which entered into an expanded codeshare agreement with Emirates in July, is looking at potentially a bigger model of aircraft than its current fleet of mainly Boeing 737-800s as it reviews its aircraft. The top end of the 737 family is the 737 Max 10 which cost $124.7 at list prices. A popular model with other budget carriers is the 737 Max 8 which is priced at $112.4 million.
“For us, we change aircraft every eight years and we have an order book now of 100," Mr Al Ghaith said. That order book expires in 2023 so we are now in the market to ensure we do something for beyond that. But we are not in a rush.”
Flydubai is “looking for similar aircraft [to what it has]- maybe even a little bigger,” he said. “For example, if you look at the Boeing family, there is the 800, the 900 and the 1000, and on the Airbus side, we have the A320, the A321 and the Max. All of these aircraft are options.”
It's unlikely that flydubai would have a mix of both Airbus and Boeing aircraft in its fleet as the operating cost would increase.
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“I’m sure our next order will be more than 100, for sure," Mr Al Gaith said. "We are not in a rush, but of course I would love to have signed a deal at this air show.” When asked if this was not going to happen, he responded, “I don’t think so,” and said around the end of the year was more feasible.
The partnership with Emirates, under which the two Dubai-based carriers are expanding their shared network to reduce route duplication and achieve efficiencies, is “going very well – we have managed to improve connectivity between the two airlines from three hours to two hours and have launched over 40 new routes on the codeshare,” he said.
The 2017-18 operating year will be “as challenging as last year” for flydubai, which reported widening losses in August. The airline recorded a loss of Dh142.5 million for the first six months to the end of June, compared with a loss of Dh89.9m for the same period in 2016. Flydubai reported a 69 per cent decline in its earnings in 2016 because of the challenging operating environment.
“Our second half of the year is always better than the first half and we are on trend with that,” he said. “I think this year will be as challenging as last, nothing much has changed, even though fuel prices have gone up to $60 per barrel.”
In the long term the “oil price is going in the right direction” to help regional airlines recover after a tough period, he said.
Flydubai intends to open “a handful” of new routes within the next two months, Mr Al Ghaith said, adding that Eastern Europe was a key growth opportunity for the airline. “Some of these routes will be driven by the relationship with Emirates.”
A merger with Emirates is out of the question.
“I personally don’t see that because each airline has its own identity and we work on areas of collaboration, of which there are plenty of course,” he said.
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
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A new relationship with the old country
Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates
The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:
ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.
ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.
ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.
ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.
IN WITNESS WHEREOF the undersigned have signed this Treaty.
DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.
Signed
Geoffrey Arthur Sheikh Zayed
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
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