Flydubai Orders 225 Boeing 737 MAX Planes in $27 Billion Deal

By Nicolas Parasie Features Dow Jones Newswires

Budget carrier Flydubai on Wednesday ordered 225 new Boeing Co. (BA) single-aisle jets in a deal worth $27 billion, as the airline looks to expand aggressively beyond the wider Middle East.

Continue Reading Below

The Flydubai order comes after Airbus (AIR.FR) had earlier on Wednesday--also at the Dubai Airshow--secured a mammoth $49.5 billion order of 430 jets with airlines linked to Indigo Partners.

Emirates Airline, which shares the same owner as Flydubai, earlier this week committed to spending $15.1 billion on Boeing's 787 Dreamliners.

Flydubai Chairman Sheikh Ahmed bin Saeed al-Maktoum said the new order will "strengthen trade and tourism links across its network" and boost the connectivity of Dubai as an aviation hub.

"This new aircraft order will support its continued expansion within a geographical area that is home to 2.5 billion people," the airline said.

The order marks a significant expansion of Flydubai's fleet, which currently consists of 61 Boeing 737-800 and 737 Max 8 aircraft. The airline already had an outstanding order of 70 aircraft due for delivery by 2023. Flydubai's last order from Boeing dates back to 2013.

Continue Reading Below

The plane maker said the new agreement includes a commitment for 175 MAX airplanes, and purchase rights for 50 additional MAXs in a deal that could "sustain tens of thousands of direct and indirect jobs" in the company's U.S. factories and network of suppliers.

Flydubai, since launching operations in 2009, has grown a network of more than 95 destinations in 44 countries. Earlier this year, Flydubai and Emirates Airline announced they would work more closely together by aligning their frequent-flier programs among other things.

Write to Nicolas Parasie at nicolas.parasie@wsj.com

(END) Dow Jones Newswires

November 15, 2017 04:38 ET (09:38 GMT)