No orders yet from flydubai but profit just round the corner says al-Ghaith

The airline already has 20 Boeing 737-800 in the fleet with orders for 50 more.

Speaking at a media briefing in Dubai earlier today, the airline's CEO Ghaith al-Ghaith said the company had no plans to place orders at the show but said that the airlne would continue its growth strategy and expected to be in profit next year. He said that its performance this year put the airline very close to break even.

Al Ghaith said the airline is planning to introduce two more destinations this year and expects to take delivery of one more aircraft in December,

“There is a big potential for business in Russia,” said al-Ghaith. “We are looking at all the former soviet Union bloc.” He said the airline had identified at least 12 destinations in the former Soviet Union and is currently negotiating to increase its permitted number of flights to Russia from the four allowed at the moment.

Speaking after the event, analyst Saj Ahmad commented:

 "For flydubai to achieve profitability in just 36 months would not just be wholly unprecedented given how young the airline is, but also because since its emergence in 2009, it has continued to expand and grow its network faster than any other low cost airline in history.
 
"The pace at which flydubai has inducted new 737-800s has been second only to the litany of markets, routes and cities that the Dubai-based carrier almost always has its eyes on. While there will be some that perhaps comment that their success is skewed due to being set up by  the Dubai Government, the reality is that aside from providing the initial start up capital, flydubai has managed to fend for itself and establish a presence in the GCC market that is now class leading.
 
"From their innovative debut of the 737 Sky Interior last year to their fiber-to-the-screen seat-back entertainment for passengers, the airline has made the most of its new 737 fleet by integrating more of what customers want and keeping fares unbundled so people have to pay for things that they dont need. Their string pricing strategy to draw in and keep passengers coming back, particularly to places like Beirut, Damascus and Kuwait has made them a regional darling and one that has captured immense market share and is likely to be second only to Emirates' dominance in the Arabian region if their current growth rate continues.
 
"While Ghaith Al-Ghaith appears to be content with the 737-800 fleet for now and still has almost 30 more airplanes yet to be delivered, flydubai is poised to place a significant order for Boeings new 737MAX family.
 
"Flydubai is eyeing up both the 737-MAX8 and the stretched 737-MAX9 which will complement the carriers desire to serve longer routes and destinations of up to and possibly over six hours from its home hub of Dubai. Flydubai has made no secret that it wants to grow its 737 fleet into triple figures and emulate the success seen by other 737 operators like Ryanair and Southwest Airlines - we should be keep a close eye on them because they're closer to placing an order for new 737s than many think."