Flydubai has signed an initial agreement with Boeing for 75 of its 737 Max narrow-bodies worth a total of $13 billion. It comes a day after the airline placed an order with Airbus for the first time.
The signing also includes options for 75 more aircraft, the airline said at the Dubai Airshow. Flydubai will use the planes for fleet growth and replacement of older aircraft.
“Looking ahead, proactive fleet planning is essential to ensuring we are well-placed to meet the rising demand for travel, a demand we are confident will continue to grow,” Sheikh Ahmed bin Saeed, chairman of flydubai, said.
“Reliable aircraft availability and timely deliveries are vital to the ongoing growth of our industry, and this agreement ensures we remain well-positioned for future growth, adding to the fleet as well as replacing current aircraft.”
The signing comes a day after flydubai bought longer-range, single-aisle A321 Neo planes from European rival plane maker Airbus. On Tuesday, flydubai signed an initial pact for 150 A321 Neos, in a departure for the previously all-Boeing operator.
The new Boeing deal allows flydubai the flexibility to choose among the variants of the 737 Max, the airline said. This will allow it to assess which size and range of the 737 Max 8, 737 Max 9 and the yet-to-be certified larger 737 Max 10 models will suit its growing network.
Wednesday's Boeing deal is flydubai's fourth 737 order. The airline placed its first wide-body order at the Dubai Airshow in 2023, for 30 Boeing 787 Dreamliner jets.
Flydubai currently operates a fleet of 96 Boeing 737 aircraft, made up of 27 Next-Generation Boeing 737-800s, 66 Boeing 737 Max 8s and three Boeing 737 Max 9 jets.
However, delays to deliveries of the 737 Max have frustrated the airline and slowed its growth as Dubai continues its ambitious tourism plans.
Flydubai has been investing in premium products and services to expand beyond the low-cost business model it established when it began in June 2009. Last year, the airline unveiled its business class lounge at Terminal 2 of Dubai International Airport.
The airline expects to post another year of record profitability in 2025, chief executive Ghaith Al Ghaith said at a media briefing on Wednesday. “We will do our best,” he said. This builds on record annual profits for the last four years.
Over the next 20 years, the Middle Eastern single-aisle fleet is projected to more than double, according to Boeing’s 2025 Commercial Market Outlook.
By 2044, the region's share of global passenger traffic will expand more than 10 per cent, fuelled by tourism, trade, hub development and an expanding middle class, it said. The Middle East's single-aisle fleet has nearly quadrupled over the past 25 years.
