Dubai airlines agree finance deals for new aircraft

Low cost carrier flydubai has signed aircraft finance deals worth more than $750 million with General Electric Capital Aviation Services and Babcock and Brown Aircraft Management while its legacy sibling has done a deal for financing two A380s.
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GE has committed to buying six new aircraft for flydubai in addition to four existing ones while Babcock and Brown  added another three aircraft, to increase its commitment to six in total.

UAE newspaper Gulf News reported today that the airline - part of the Emirates group - could be expanding routes intos into northern and southern Africa as well as across India and Saudi Arabia. In a statement the airline said it would use the cash to finance its next nine aircraft purchases, plus other financing requirements the carrier may have up to June next year.

Flydubai chief executive officer Gaith Al Gaith said he had seen a lot of interest in the finance deal . "GE Capital and BBAM are some of the largest aircraft financiers in the world and their faith in flydubai is a huge endorsement of us and our success since our launch," he said.

"This is a very nice position for a young and ambitious airline to be in. I believe this is a reflection not only of our position but also of the confidence the financial community around the world has in Dubai," he said.

Meanwhile online news service flightglobal reported today thatEmirates Airline has mandated Citi for the financing of two additional Airbus A380-800s. The bank is the sole arrnager of a 12-year European Export Credit Agencies facility with Emirates providing the equity.Both aircraft  are scheduled for delivery in October and November 2010.

Emirates mandated Citi in 2009 for three A380s. That transaction was successfully completed with the third delivery in June 2010.  

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