Flydubai looking to close single-aisle order in time for Dubai air show

Flydubai is closing on an order for re-engined single-aisles, which it hopes to conclude in time for an announcement at November's Dubai air show, reports Flight Global.

Chief executive Ghaith Al Ghaith said: “We are primarily looking at the Airbus A320neo and Boeing 737 Max. We are engaged in very serious negotiations, and in the near future we should make an announcement. If we are ready, it would be nice to make an announcement at the show.”

Analyst Saj Ahmad commented: “flydubai still has 19 more 737-800s yet to deliver between now and 2016 and the airline will be mindful of how far sold out Airbus is with the A320neo and that the 737MAX debuts a year or so later in 2017. To that end, any swap to the A320neo would incur huge transitional costs that would also certainly wipe out whatever cost advantage the airline has, not to mention that it won't get deliveries of A320neo's as fast as it would like given Airbus' current backlog.

“All signs indicate an order for the 737 MAX 8, which, despite entering service after the A320neo, Boeing still has the ability to deliver these jets ahead of what Airbus could for the airline - but flydubai would also maintain a huge degree of commonality with its current 737-800 fleet, which most tellingly flies more passengers that the current competing A320 employed by the likes of Jazeera Airways, nas Air and Air Arabia.”

Ahmad added: “That sort of added revenue bonus, coupled with the higher dispatch reliability rate of the 737 versus the A320 is what has led flydubai n being the lowest cost airline in the GCC and they would be loath to lose such a competitive advantage if they were enticed by a switch to the lower priced A320neo.

“And with Boeing in a better place in terms of providing additional 737 frames to cover for flydubai's growth between 2016 and when 737 MAX deliveries commence in 2017, this is one campaign that Boeing should, on paper, wrap up at the Dubai Air Show in a few weeks.”