Farnborough Airshow: Flydubai to issue tender for 'biggest order' yet by year-end

Airline is considering Boeing and Airbus narrow-body models, chief executive says

Ghaith Al Ghaith, chief executive of Flydubai, says Boeing jet delivery delays are hamstringing the airline's growth. Pawan Singh / The National

Flydubai plans to issue a tender for new narrow-body planes by the end of this year, in a deal that would be the largest aircraft order in its 15-year history, the airline's chief executive said at the Farnborough International Airshow.

"We are here because we will start the process to issue an RFP [request for proposals] for a new deal for narrow-body aircraft sometime before the end of the year," Ghaith Al Ghaith told The National on Wednesday on the sidelines of the airshow in the UK.

"So we are here to speak to everybody about it because it is a good opportunity.

"We are talking with Boeing, Airbus and engine-makers. It will be the biggest [order] for sure."

The airline made a record purchase in 2017 of 175 Boeing 737 aircraft.

The planned new order will help the airline grow its fleet into the next decade, after it takes delivery of its last Boeing 737 aircraft in 2031, and as it moves into the new passenger terminal at Al Maktoum International, whose capacity will allow it expand further, Mr Al Ghaith said.

The all-Boeing fleet operator said on Monday that its growth plans have been "stunted" after it received an update from the US plane maker that it will not get any further planes this year, leaving it with a shortage in capacity during a period of strong air travel demand.

The airline is examining the knock-on impact on its new routes and flight frequencies on existing destinations, Mr Al Ghaith said on Wednesday.

"We are studying this now and ... we may reduce frequencies on some routes, we may cancel some routes we've announced recently, we may also lease aircraft for a short period," he said.

"The team is studying this now and when I go back, we will make some decisions."

The extended jet delivery delays will have a "financial impact for sure", Mr Al Ghaith said, but the extent of that will depend on how far it can increase its aircraft utilisation.

In December last year, Boeing informed Flydubai that it will deliver 12 planes in 2024, he said. That included four planes that were originally meant to be handed over in 2023, but were delayed.

In March 2024, the airline was informed it will receive only eight of the 12 planes.

Last week, Boeing told Flydubai that it will not receive any additional aircraft beyond the four that have already been delivered this year, Mr Al Ghaith said.

Flydubai has held meetings with Boeing, among its other suppliers, during the airshow.

"Of course the issue came up, like many other issues did, but there is very little we can do about this," he said.

"As far as we're concerned, these are tough discussions."

Flydubai has ordered 251 of Boeing’s 737 jets in total and has yet to take delivery of 127 of the aircraft.

The US plane maker has been delaying deliveries as it struggles with production issues amid a safety and quality crisis that has increased regulatory scrutiny.

On Sunday, Boeing's chief of commercial jets Stephanie Pope said the company had disappointed its customers but it was making transformational and systemic changes based on feedback from its employees, airlines and regulators.

Ms Pope also said some customers had been led through Boeing's Renton factory to understand the actions being taken to address quality and safety issues, and that the factory floor had been opened for their inspection.