FlyDubai Looking at Financing Options Ahead of Maturing Sukuk

A Boeing Co. 737 MAX8 aircraft, operated by FlyDubai
A Boeing Co. 737 MAX8 aircraft, operated by FlyDubai, stands on the tarmac during the 15th Dubai Air Show at Dubai World Central (DWC) in Dubai, United Arab Emirates, on Monday, Nov. 13, 2017. Photographer: Natalie Naccache/Bloomberg

(Bloomberg) — FlyDubai, a discount airline that’s forging closer links to long-haul giant Emirates, is looking at funding options for its sukuk maturing in November.

The carrier seeks to replace the $500 million Islamic loan with new sukuk or a combination of sukuk and bank loans, Chief Executive Officer Ghaith Al-Ghaith said in Dubai on Sunday. FlyDubai hasn’t yet asked banks to bid.

He also said there are no updates on the airline’s plans for the Boeing’s 737 Max or potential orders. “The grounding of the 737 Max will impact our financials but our priority is to ensure the aircraft is safe and ready to fly,” Al-Ghaith said.

Also said:

Codeshare agreement with Emirates didn’t cut costs, but there could be ways to reduce costs in the future. Reiterated that both airlines will be managed separately “FlyDubai is constantly looking at opportunities, different aircraft, bigger ones but there is nothing in the pipeline”

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