flydubai says expansion plans hindered by Boeing delays

FILE PHOTO: A Boeing 737 MAX aircraft bearing the logo of flydubai is parked at a Boeing production facility in Renton·Reuters
Reuters
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DUBAI/FARNBOROUGH, England (Reuters) -Budget carrier flydubai's fleet expansion plans have been hit by delays to Boeing's aircraft delivery schedule, the Dubai airline said on Monday.

Flydubai, the sister low-cost airline of flagship carrier Emirates, said it was "evaluating its route development plans and potential frequency revision across the network due to a lack of new aircraft deliveries over the next few months".

Demand for air travel has rebounded since the pandemic, but planemakers are struggling to boost production levels due to disrupted supply chains and a safety crisis at Boeing.

Flydubai said Boeing's delivery delays in recent years had placed substantial pressure on the airline and its ability to plan for its projected growth in the wake of strong post-pandemic demand for travel.

The carrier said that due to revisions of the delivery schedule for 2024, Boeing was not expected to hand over 14 737 MAX aircraft originally scheduled for the year.

Flydubai, which has more than 125 737 MAX jets on order to be delivered over the next decade, urged the U.S. manufacturer to "honour and renew its commitment" to meet its delivery obligations.

It also said it was exploring options to reduce the impact of the delays, adding it had entered aircraft, crew, maintenance and insurance (ACMI) deals, without elaborating.

Asked about flydubai's comments, Darren Hulst, Boeing's vice president of commercial marketing, acknowledged many airlines had been waiting for planes but said it was important to take the time to ensure the company is consistently building quality planes.

"There's no doubt we've disappointed our customers, and we've disappointed them, you know, over and over again, in many cases," Hulst said. "We need to create that stability so that we can provide not just a quality airplane, but a quality airplane when we when we tell our customers that it's going to be delivered."

The carrier also flagged it had incurred additional costs as it had to extend the lease on some aircraft it was planning to return under sale and leaseback agreements.

Flydubai says it is the largest operator of Boeing 737 MAX aircraft in the Middle East and Gulf Cooperation Council (GCC) region.

(Reporting by Federico Maccioni; additional reporting by David Shepardson in Farnborough, England Editing by David Goodman and Mark Potter)