By: Amr Fouad
Dubai – Mubasher: Budget carrier flydubai is still working on its expansion plans as part of its strategy to ease travel obstacles and provide customers with various options, CEO Ghaith Al Ghaith told Mubasher in an interview.
The airline is also moving in accordance with the decrees and strategy set forth by Sheikh Mohammed bin Rashid Al Maktoum, the deputy prime minister and ruler of Dubai, Al Ghaith highlighted.
flydubai’s jets
The Max 8 jet deal, signed during the Dubai Airshow 2017, is the biggest narrow-body or single-aisle aircraft transaction in the Middle East, Al Ghaith stated, noting that adding over 100 jets to flydubai’s fleet by 2023 would bring the total number of its planes to 296.
We expect to receive the first group of these jets in the coming 10 years, the CEO revealed.
The state-owned aviation firm’s fleet currently comprises 61 planes including eight Boeing 737 MAX 8s, in addition to Boeing 737-800 Next Generation aircraft, the top official remarked.
The Dubai-based carrier, also known as the Dubai Aviation Corporation, is always keen to diversify its financing resources, Al Ghaith said, indicating loans and a sukuk issuance.
We have also used a new innovative lending means, the Japanese Operating Leases with Call Option (JOLCO), the top official revealed, adding that flydubai was the first in the world to use this solution to finance its MAX jets.
Profits and fuel
As for flydubai’s profits for 2018 and its local market share, Al Ghaith told Mubasher that his company strives to control its costs, which in turn will help ensure the carrier’s continuous and sustainable growth in the coming few years.
Despite the volatile economic and social environments, flydubai has witnessed an increase in the number of passengers, which has been reflected in the company’s profit and revenue growth.
The aviation sector plays a major role in the economic and social development of the UAE in general and Dubai in particular, Al Ghaith emphasised, indicating that the sector contributes over 20% of the emirate’s gross domestic product (GDP).
Commenting on the impact of the rise in fuel prices on the carrier and its subsequent impact on costs, the Dubai Aviation Corporation’s CEO stated that fuel prices represent the biggest item on a carrier’s balance sheet.
Fuel accounted for 25% of flydubai’s total costs in 2017, he said.
As for the carrier’s pricing mechanism, Al Ghaith indicated that that depends on a number of factors, including fuel along with supply and demand.
Mergers and IPOs
Turning to the topic of the rumoured merger between flydubai and Emirates, Al Ghaith stressed that there were no plans for such a merger and that the two companies would continue to operate separately.
When asked about an expected initial public offering (IPO), the CEO told Mubasher that this decision would be taken by the Dubai government, which is the sole owner of flydubai.
New Destinations
Last but not least, Al Ghaith said that over the past few years, his company succeeded in building a network spanning over 100 destinations in 74 countries.
Our expansions are not bound by certain markets, the top official told Mubasher, adding that in 2018, flydubai will begin conducting regular flights to 10 new destinations most of which are in south and eastern Europe.
flydubai has a strong presence in the Russian market where we serve 11 destinations through over 52 flights per week, the top official revealed.
State-owned flydubai also has around 13 destinations in Africa, 27 in Europe, added to 30 destinations in the Middle East as a whole.
Translated by: Muhammad Khalid & Nada Adel Sobhi
